The German federal government announced on July 30, 2025, that it will increase film production funding to €250 million annually starting in 2026. This funding increase may continue for the rest of the current parliament's term, extending through 2029. The existing funding schemes for film production will each increase, raising the combined budget for the German Federal Film Fund (DFFF) and German Motion Picture Fund (GMPF) to €250 million annually, almost double the current budget. Of the €250 million, €70 million will be allocated to DFFF I for theatrical film funding that German producers apply for, €90 million to DFFF II for theatrical film funding that German service providers apply for, and another €90 million to the GMPF for TV films and high-end series. Funds allocated to the three incentive schemes – DFFF I, DFFF II, and GMPF, each providing non-repayable grants covering 30% of German production costs – may continue to be transferred between these programs as needed.
Plans for Tax Incentive Abandoned; Investment Obligation on Streamers Still Expected
This decision abandons plans to introduce a long-debated tax incentive model in favor of direct funding and aims to strengthen Germany's competitiveness as a film production hub. A new draft law for an investment obligation on streaming platforms may also be published soon, with related industry consultations beginning shortly thereafter.
We will monitor these developments.
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