On March 15, 2022, the Cabinet of Ministers approved a new state support program of the Ministry of Economics for filming foreign films in Latvia. In order to promote the attraction of foreign investments, various financial support mechanisms have been established in many countries in Europe and the world, both in the form of taxes and funds, so that foreign film producers are financially interested in filming films in a given country, recovering part of the invested funding.
The services provided by the film industry significantly stimulate the development of economy and recognition of Latvia. With the help of co-financing, employment is effectively promoted in various sectors of the economy, including those not directly related to the film industry (for example, hospitality, catering, transport services), while strengthening the international competitiveness of film industry professionals.
Regulation of the Cabinet of Ministers of March 15, 2022 No. 173 "Procedure in which state budget co-financing is granted for the filming of foreign films in Latvia" (CM regulation 173) determines the procedure by which the Latvian Investment and Development Agency (hereinafter - LIAA) grants state budget co-financing for the filming of foreign films in Latvia.
The Ministry of Economics, in cooperation with LIAA, is currently working on amendments to the regulations of the CM 173, with the aim of improving and speeding up the procedure for submitting projects and the support granted, changing the evaluation criteria of the project submission, supplementing the criteria of eligible costs, changing the amount of co-financing by determining it in a single item of eligible expenses, as well as determining the obligation to timely submit a detailed and documented list of the amount of taxes paid as a result of project implementation.