The German federal government announced on July 30, 2025, that it will increase film production funding to \u20ac250 million annually starting in 2026. This funding increase may continue for the rest of the current parliament\u2019s 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 \u20ac250 million annually, almost double the current budget. Of the \u20ac250 million, \u20ac70 million will be allocated to DFFF I for theatrical film funding that German producers apply for, \u20ac90 million to DFFF II for theatrical film funding that German service providers apply for, and another \u20ac90 million to the GMPF for TV films and high-end series. Funds allocated to the three incentive schemes \u2013 DFFF I, DFFF II, and GMPF, each providing non-repayable grants covering 30% of German production costs \u2013 may continue to be transferred between these programs as needed.<\/p>\n
Plans for Tax Incentive Abandoned; Investment Obligation on Streamers Still Expected<\/strong><\/p>\n This decision abandons plans to introduce a long-debated tax incentive model in favor of direct funding and aims to strengthen Germany\u2019s 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.<\/p>\n We will monitor these developments.<\/p>\n