Ireland Significantly Raises VFX Tax Credit Rate to 40%

The Irish government announced in its budget for the new fiscal year, unveiled on October 7th, that it will enhance tax incentives for the visual effects (VFX) sector, increasing the tax credit rate on VFX expenditure to 40%. This move further strengthens the country’s “Section 481” film and television tax relief scheme.

According to the new regulations, production projects with eligible VFX expenditure incurred locally in Ireland exceeding €1 million can now apply for this tax credit, set at the elevated rate of 40%. Previously, VFX work only qualified for the standard credit rate of 32%.

Leveraging its talent and technical expertise, Ireland has successfully attracted VFX work for numerous major international productions. These include Marvel Studios’ WandaVision and Spider-Man: No Way Home, as well as the Disney+ series Shōgun.

For comparison, the United Kingdom, in its Autumn Budget 2024, also announced a 5% increase in the tax credit rate for VFX in film and high-end television productions. This raises the net expenditure credit rate to 29.25%. Furthermore, UK VFX expenditure is exempt from the 80% cap applied to other production costs eligible for the main Audio-Visual Expenditure Credit.

Commenting on this development, Desiree Finnegan, Chief Executive of Fís Éireann/Screen Ireland, stated, “Irish VFX and post-production work showcases the very best of visual artistry and technical expertise, generating both commercial success and international award-winning work,”

She further added,“Screen Ireland has worked closely with Ireland’s VFX and post-production studios to strengthen relationships with the world’s leading film studios – to drive growth, creating employment and supporting skills development opportunities through the National Talent Academy for VFX.”