# Co-production Treaty

Source: https://storiara.com/glossary/co-production-treaty
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> A co-production treaty is a government agreement that lets producers from two or more countries make a film or series together and have it treated as a national production in each partner country. Each co-producer must make a minimum creative and financial contribution, and in return can access its own country's incentives, funds, and broadcast quotas.

## How a treaty co-production is put together

Two producers, say one in London and one in Toronto, agree to make a film together. They sign a co-production agreement that sets ownership, the budget split, who hires which heads of department, where shooting and post happen, and how revenue is divided. Each producer applies to its own competent authority (the BFI in the UK, Telefilm Canada in Canada) for approval. If both approve, the film is a national film in both countries, and each co-producer can claim its own country's incentives on the spend it controls.

The treaty text sets the rules: minimum shares, how many creative roles must come from each country, and whether a third-country partner can join. Screen Australia describes the basic requirement as each co-producer bringing a minimum percentage of both the financial and creative contribution, with the two in reasonable proportion.

## A budget split example

A UK and Canada feature budgeted at the equivalent of C$6,000,000 is split 60/40.

| Item | UK co-producer | Canadian co-producer |
|---|---|---|
| Share of budget | 60% | 40% |
| Financing brought | UK credit, UK equity, a UK pre-sale | Canadian credits and fund money, Canadian distributor |
| Creative | Director, lead actor, DP | Writer, second lead, composer |
| Where spent | Principal photography in the UK | Post-production and VFX in Canada |
| Copyright | 60% | 40% |

Each side's incentive is calculated on its own qualifying spend. The UK producer claims AVEC on UK core expenditure. The Canadian producer claims Canadian federal and provincial credits on Canadian spend. Neither can claim on the other's spend.

## Where co-productions get complicated

The creative and financial splits have to line up. A partner that brings 40% of the money but only one minor crew position will struggle to get approval. Currency is another issue: the split is agreed in one currency and spent in two, so a move in exchange rates can push a partner below its minimum share. Build that margin into the agreement.

Paperwork is also heavier than on a single-country film. Both authorities want the co-production agreement, chain of title, the split budget, and cast and crew lists, and both issue their own final certification. Delays at one end hold up the other country's credit.

## Related reading

For films that can't pass a [cultural test](https://storiara.com/glossary/cultural-test), a treaty is often the way in. Country pages for the [United Kingdom](https://storiara.com/incentives/united-kingdom), [Canada](https://storiara.com/incentives/canada), and [Australia](https://storiara.com/incentives/australia) cover the incentives each partner brings, and [why shoot overseas](https://storiara.com/blog/tax-incentives-and-global-film-production-why-shoot-overseas) covers the wider trade-offs. Co-production money is part of the [soft money](https://storiara.com/glossary/soft-money) in a finance plan.

## Frequently asked questions

### Which countries does the UK have co-production treaties with?

The BFI lists bilateral treaties with Australia, Brazil, Canada, China, France, India, Israel, Jamaica, Morocco, New Zealand, Palestine, and South Africa. The UK also uses the European Convention on Cinematographic Co-production, in its original and revised versions.

### What is the minimum contribution in a co-production?

It depends on the treaty. Screen Australia notes that its treaties and memoranda usually require a minimum of 20% or 30% from each co-producer, with creative and financial contributions reasonably in proportion.

### Does an official co-production still need to pass a cultural test?

In the UK, a film certified as an official co-production can qualify for the expenditure credit through the treaty instead of the cultural test. Other countries set their own rules, so check with each competent authority.

### Is a co-production the same as a service production?

No. In a service production a local company provides crew and facilities for a fee and owns nothing. In an official co-production each co-producer shares ownership and makes creative contributions.

## Sources

- [BFI, Qualify for tax relief as an official co-production](https://www.bfi.org.uk/apply-british-certification-expenditure-credits/co-production)
- [Screen Australia, Co-production Guidelines](https://www.screenaustralia.gov.au/co-production-program/co-production-guidelines/)
- [BFI, About UK creative industry expenditure credits](https://www.bfi.org.uk/apply-british-certification-expenditure-credits/about-uk-creative-industry-expenditure-credits)