The Autonomous City of Melilla has taken a decisive step to position itself on the competitive map of film shoots in Spain. During an event held at the Palacio de la Prensa in Madrid, the Melilla government officially presented the Melilla Film Commission, an initiative aimed at attracting national and international audiovisual productions by leveraging its special tax regime, compact geography, and multicultural character.
The announcement comes at a time when various Spanish regions are competing to attract film shoots through tax incentives and logistical facilities. Melilla, which has suffered from a weakened economy since the unilateral closure of the commercial customs office with Morocco in 2018, sees the audiovisual sector as a way to diversify its productive model.
A 12-square-kilometer city with multiple settings
The Minister of Culture of the Autonomous City, Fadela Mohatar, led the presentation, highlighting Melilla's uniqueness as Europe's southern border with the Maghreb. As she explained, this border status translates into a natural coexistence between Amazigh, Muslim, Christian, Jewish, and Roma cultures, in addition to an architectural heritage that includes modernist buildings, synagogues, churches, mosques, and one of the best-preserved fortified enclosures in Europe.
This diversity allows, according to the Autonomous City, for radical changes in location with travel times of just 15 minutes. This is complemented by good air and sea connections to the mainland, as well as auxiliary production services such as set design, sound, lighting, or post-production.
The experience of a filmmaker who returns to Melilla
Filmmaker Juan Antonio Moreno, from Making Doc, recounted his bond with the city during the event, where he shot the work "Dónde nos lleve el viento" in 2018 and returned in 2021 for the feature film "Bienvenidos a España" and a social-themed documentary. Moreno highlighted the ease of access to filming locations and the quality of the light throughout the year, as well as the professionalism of the local audiovisual sector.
Taxes cut in half, the great draw
The central appeal of the Melilla proposal is its tax system. As explained by tax expert Joaquín López Avellaneda, head of the Tax area at PwC Tax & Legal in Málaga, in Melilla, you pay at least half of any tax, and in some cases even less.
Corporate Tax, for example, is subsidized by 60 percent: compared to the general 25 percent rate in force on the Peninsula, in Melilla, you pay 10 percent. Newly created companies pay only 6 percent during their first two years of activity.
To benefit from these conditions, it is not necessary to incorporate a company in Melilla. It is sufficient to have an office, a permanent establishment, or a branch, with sufficient personal and material resources to carry out the activity in the city.
Benefits linked to hiring workers
Even without closing the so-called commercial cycle, each full-time worker hired in Melilla allows for generating up to 60,000 euros of profit subsidized by 60 percent. In practice, for every 60,000 euros of profit, 6,000 euros would be paid instead of 15,000, with a limit of 1.2 million euros. In the case of new companies, those figures double, up to 120,000 euros per worker and a maximum of 2.4 million.
Added to this is a 75 percent subsidy on Social Security contributions for each hired worker and a 60 percent deduction in Personal Income Tax (IRPF) for those residing in Melilla.
López Avellaneda gave the example of a post-production and visual effects studio based in Madrid with a profit of 1.5 million euros that decides to open an office in Melilla with eight full-time workers: that structure would generate 600,000 euros of subsidized profit. The expert also noted that these advantages are compatible with the tax deductions specific to the audiovisual sector, allowing a tax credit to be applied for 15 years in case of insufficient quota.
Travel and transport discounts
The Autonomous City also offers discounts of up to 75 percent on travel to Melilla, both by plane and boat from cities like Málaga, in line with the subsidies received by residents of Ceuta, the Canary Islands, and Melilla itself. Through the Film Commission, an additional 20 percent discount is added on shipping companies for the transport of goods linked to film shoots. Melilla maintains connections with 12 destinations in summer, which are reduced to eight in winter.
Direct aid planned for 2027
Fadela Mohatar announced that the Melilla government is working to include a line of direct aid for audiovisual production in the 2027 budget. The proposal, developed together with filmmaker Juan Antonio Moreno—promoter of the Extremadura Film Residency—contemplates an annual endowment of 300,000 euros: 250,000 for fiction productions and 50,000 for a documentary, conditioned on them generating a return in the city through filming and hiring.
A sector with a prior track record
Mohatar recalled that the Melilla Film Commission has been operating for approximately two years, although the city's link to the audiovisual sector is older. Melilla has one of the oldest film weeks in Spain, which emerged in the 70s, and a short film festival that receives around 500 works from all over the world each year.
Recent shoots in the city include the social drama "Te protegerán mis alas", directed by Antonio Cuadri, and the Movistar Plus series "La Unidad", as well as documentaries and various advertising spots. The Autonomous City also maintains a collaboration agreement with the Málaga Festival, and the Melilla Film Commission is part of the Spain Film Commission network of film offices.
Frequently Asked Questions
What is the Melilla Film Commission? It is the film office of the Autonomous City of Melilla, attached to the Ministry of Culture, which offers free information and advice to production companies interested in filming in the city.
What are the main tax advantages of Melilla for the audiovisual sector? Corporate Tax is subsidized by 60 percent, going from 25 to 10 percent generally, and to 6 percent for new companies during their first two years. There are also 75 percent subsidies on Social Security and 60 percent deductions in Personal Income Tax (IRPF) for residents.
Is it necessary to create a company in Melilla to access these benefits? No. It is enough to have an office, a permanent establishment, or a branch with sufficient personal and material resources to carry out the activity in the city.
Will there be direct aid for audiovisual productions in Melilla? The Melilla government is studying the inclusion of an annual aid line of 300,000 euros in the 2027 budget, divided between fiction and documentary, conditioned on the production benefiting the city.
What productions have been filmed recently in Melilla? Among others, the drama "Te protegerán mis alas" by Antonio Cuadri and the Movistar Plus series "La Unidad", as well as documentaries and advertising spots.
What discounts exist for traveling to Melilla for filming purposes? There are vouchers with discounts of up to 75 percent on flights and sea routes, and an additional 20 percent on shipping companies for the transport of goods linked to film shoots.
