# Iceland Film Reimbursement: 25% Standard, 35% for Big Shoots Source: https://storiara.com/incentives/iceland Last updated: 2026-09-14 Author: Charles Hirschhorn, Storiara > Iceland reimburses film and TV productions from the state treasury under Act No. 43/1999. The standard rate is 25% of production costs incurred in Iceland, with no minimum spend. Productions get 35% if they spend at least ISK 350 million, work 30 days in Iceland (10 of them shooting), and employ at least 50 people for 50 working days, or if they're children's or youth content. Applications go to the Icelandic Film Centre before production starts. The reimbursement comes from the state treasury, and a committee appointed by the culture and finance ministers decides applications. The Act states its aim as strengthening Icelandic culture and promoting the country's history and nature, and each project has to pass a cultural and production test set by regulation. Film in Iceland, part of Business Iceland, markets the scheme. The Icelandic Film Centre takes the applications. ## Three rates, three routes | Route | Rate | Conditions | |---|---|---| | Standard | 25% | Any eligible feature, series, or documentary with costs in Iceland | | Large production | 35% | ISK 350 million of costs in Iceland, 30 working days in Iceland with at least 10 shooting days, at least 50 people working at least 50 days with pay taxed in Iceland | | Children's and youth content | 35% | Features, animation, or documentaries made specifically for audiences 18 and under | Film in Iceland's FAQ says the children's and youth rate has applied since December 2025. Then there's the 80% rule. If more than 80% of a project's total cost is incurred in Iceland, the reimbursement base becomes all qualifying costs in the EEA, Greenland, and the Faroe Islands. A production that does almost everything in Iceland and finishes sound in Denmark can claim on the Danish mix too. ## Worked example: $1,000,000 at 25% Using ECB reference rates for 11 September 2026 (EUR 1 = USD 1.1592 and EUR 1 = ISK 139.60, so USD 1 = about ISK 120.43), $1,000,000 is about ISK 120,400,000. A small feature spends ISK 72,000,000 in Iceland: local crew paid through Icelandic payroll, vehicle and gear rentals, accommodation in Vík, and a Reykjavík grade. The director's fee is paid to a US loan-out company that isn't taxed in Iceland, so it stays out. - Reimbursement: ISK 72,000,000 x 25% = ISK 18,000,000 (about $149,500) - 80% test: ISK 72,000,000 / ISK 120,400,000 = 60%, under 80%, so only Icelandic costs count - Auditor's attestation required, because the reimbursement is over ISK 3 million ## Worked example: $5,000,000 at 35% $5,000,000 is about ISK 602,100,000. The production spends ISK 380,000,000 in Iceland over 34 working days, 12 of them shooting, with 55 people on Icelandic payroll for 50 or more days each. - ISK 350 million test: passed (ISK 380 million) - Days test: 34 working days with 12 shooting days, passed - Crew test: 55 people for 50+ days, passed - Reimbursement: ISK 380,000,000 x 35% = ISK 133,000,000 (about $1,104,000) Drop to 9 shooting days or 48 crew members and the whole claim falls back to 25%: ISK 95,000,000. That ISK 38 million difference is worth building into the [shooting schedule](https://storiara.com/glossary/shooting-schedule) and crew plan from the start. ## From application to payment 1. Before production begins in Iceland, apply online with a statement of how the project meets the Act's aims, company registration papers, a production plan, itemized budget and financing with confirmations, planned distribution, a synopsis or script, shooting locations, and the main and Icelandic participants. 2. The committee reviews the project against the cultural and production criteria and issues approval, which Film in Iceland describes as a letter of intent. 3. Start main production within a year of approval. One extension is possible. 4. Keep the project's books separate from every other project. 5. Complete the production within three years of approval (up to five in special circumstances). 6. Request payment within six months of the premiere (for a series, the premiere of the last episode). Reimbursements over ISK 3 million need an auditor's attestation. ## Watch-outs - Reimbursements expected to exceed ISK 300 million won't be paid earlier than 18 months after the application. Budget interest if you're borrowing against a big one. - Public grants for the same project are deducted from Icelandic costs, and total public support plus reimbursement is capped at 85% of total cost. - Commercials, music videos, shorts, news, and sports or entertainment recordings are excluded. - Film in Iceland recommends using an Icelandic production service company; it's not a legal requirement in the Act. - The Act lapses on 31 December 2028 unless extended again. ## Nearby options [Norway](https://storiara.com/incentives/norway) pays up to 25% but sets high minimum budgets and requires 30% international financing. [Ireland](https://storiara.com/incentives/ireland) is the other North Atlantic option with a larger crew base. For how a straight reimbursement stacks up against a credit, see [film rebates vs tax credits](https://storiara.com/blog/film-rebates-vs-tax-credits-which-one-is-best-for-your-production), and the [cash rebate](https://storiara.com/glossary/cash-rebate) entry covers the basics. ## Frequently asked questions ### Is there a minimum spend for Iceland's film reimbursement? Not for the 25% rate or for children's and youth content at 35%. The large-production route to 35% requires at least ISK 350 million of production costs in Iceland. ### Is there a cap on the Iceland film refund? The Act doesn't set a per-project cap. It does say reimbursements over ISK 300 million won't be paid until at least 18 months after the application, and total public support plus reimbursement can't exceed 85% of total production cost. ### Do commercials qualify for Iceland's reimbursement? No. The Act excludes advertising, news content, short films, recordings of sports and entertainment, product promotion, and content made mainly for the producer's own distribution system. ### When does the Iceland film incentive expire? Act No. 43/1999 is set to lapse on 31 December 2028. Reimbursements approved before then remain valid. A working group was due to propose amendments to the Minister by 1 March 2026. ## Sources - [Act No. 43/1999 on Temporary Reimbursements for Filmmaking in Iceland (English translation, PDF)](https://film.cdn.prismic.io/film/aeIw2J1ZCF7ETTMa_ActOnTemporaryReimbursementsforFilmmakinginIceland.pdf) - [Film in Iceland: Incentives](https://filminiceland.com/incentives) - [Film in Iceland: How to apply](https://filminiceland.com/how-to-apply) - [European Central Bank: euro foreign exchange reference rates (EUR/ISK and EUR/USD)](https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/index.en.html)