Iceland: A Rising Filming Destination with Stunning Landscapes and Tax Incentives

Welcome to the Land of Fire and Ice

To many, Iceland is a breathtaking land defined by its striking contrasts of fire and ice. However, an increasing number of people are discovering Iceland as a land of opportunity. This stunning island nation has become a sought-after destination, not only for tourists but also for filmmakers from around the globe eager to capture its dramatic landscapes in feature films and television series. Moreover, the country offers an attractive incentive scheme for productions that choose to film here.

Over recent years, some of the biggest blockbusters and television hits have been filmed in Iceland, including Thor: The Dark World, Prometheus, Batman Begins, Star Wars: Rogue One, Star Wars: The Force Awakens, No Time To Die, and, perhaps unsurprisingly, Game of Thrones. Notably, Icelandic director Baltasar Kormákur, whose latest film Beast, featuring Idris Elba, has just hit theaters, has recently opened two film studios—RVK Studios—to accommodate this growing demand for filming in Iceland.

Building a Creative Hub

Kormákur shared his vision with Euronews Culture, stating, “I had a smaller studio for myself back in the day, and I had this idea to build a village. We spoke to the mayor of Reykjavík to support the idea of transforming this industrial space in Reykjavík into something new. It was an area that wasn’t used, and I saw the beauty of it.”

RVK Studios is owned by Kormákur, who made his directorial debut with 101 Reykjavík in 2000. Since then, he has been a prolific writer, director, and producer, working on an array of films and television series both in Iceland and Hollywood. The studio has been involved in numerous Hollywood productions such as Two Guns, Contraband, and Everest, along with popular Icelandic television series like Trapped and Katla.

Why Choose Iceland?

Despite its remote location in the North Atlantic, Iceland has emerged as a preferred filming location with new productions being announced continuously, drawn by the island’s stunning beauty. Kormákur humorously remarked, “Iceland is an attractive location for me because I live here. But for foreign studios, they come here because we have built a great crew and because of the landscape.”

The landscape of Iceland is nothing short of extraordinary, ranging from majestic waterfalls to unique highland deserts. The contrasts presented by its natural beauty are simply breathtaking. Leifur B. Dagfinnsson, the CEO and founder of the Icelandic production company Truenorth, noted, “Iceland’s popularity stems from the magnificent locations we have, along with the accessibility to vast landscape settings.”

Truenorth has been involved in high-profile productions such as The Midnight Sky, Dune, and The Northman. Dagfinnsson emphasized, “We can make things happen in harsh environments while ensuring the safety of everyone involved. We take crews to glaciers, mountains, and the highlands.”

The versatile landscapes of Iceland can effectively stand in for various countries. For example, in The Secret Life of Walter Mitty, Icelandic scenery was used to represent Iceland, Greenland, and even the Himalayas. Dagfinnsson explained, “This approach saves studios a lot of hassle, as one country can represent many different locations.”

Attractive Tax Incentives

In addition to its breathtaking landscapes, Iceland’s appeal is significantly enhanced by the government’s program that reimburses up to 35% of production costs incurred while filming films and television shows in the country. Productions can claim refunds on costs related to employees and contractors as long as they are verifiably taxable in Iceland.

Every production, whether a feature film, television show, or documentary, is eligible for a 25% refund on costs incurred in Iceland, regardless of the project’s total expenses. To qualify for the maximum rebate of 35%, a production must meet three essential criteria:

• The production costs incurred in Iceland must reach a minimum of ISK 350 million (€2.5 million).
• The project must involve a minimum of 30 working days in Iceland, which can include filming and defined post-production work days. Of these, at least 10 must be actual filming days in Iceland.
• The project must employ a minimum of 50 staff members for at least 50 working days, with salaries and payments taxed in Iceland.

Dagfinnsson remarked, “The tax incentive offered by the Icelandic government plays a crucial role in attracting productions to shoot in Iceland for the entire duration of their film or television series, rather than just for landscape shots. It’s truly a game changer.” Kormákur echoed this sentiment, stating, “The government has been supportive, raising the rebate to 35%. The Icelandic Króna is flexible, and there’s optimism that this change will significantly impact production interest.”

With RVK Studios and Truenorth managing numerous projects at various stages of production, the future looks promising. Kormákur shared, “We will have three stages operational by late Fall, and one is already fully booked. True Detective, featuring Jodie Foster and Sigourney Weaver, is set to shoot here for half a year, and Iceland will be portrayed as Alaska in the series.” Meanwhile, Truenorth is working on the Netflix action-thriller Heart of Stone, starring Gal Gadot. Earlier this year, the production took over downtown Reykjavík for four days, involving 600 crew members and 400 extras, marking it as the largest production ever filmed in Reykjavík.