The German film industry is facing significant changes. The new The German Film Law (FFG), which is intended to promote Germany as a film location internationally and keep it competitive, was announced at the end of December 2024. Find out how the amendment to the FFG is changing the German film industry.
The FFG regulates the allocation of funding to film productions and is based on a combination of cultural and economic support.
Important changes at a glance:
- Awarding according to the reference principle
Since 1 January 2025, film and distribution funding has largely been awarded according to the reference principle. This is carried out by the levy-financed German Federal Film Board (FFA).
- Integration of federal film funding into the FFA
All film funding programmes of the Federal Government Commissioner for Culture and the Media (BKM) will in future be bundled at the FFA. This should enable a simplified and more transparent funding procedure.
- Increase in the funding quota
On 1 February, the funding quota was raised from 20% to 30% of German production costs. This is intended to raise funding to an internationally competitive level.
Christina M. Rester
Senior Manager, Corporate Tax Services
KPMG AG Wirtschaftsprüfungsgesellschaft
The increase in the funding rate for the German Federal Film Fund (DFFF) and the German Motion Picture Fund (GMPF) is a positive development for German filmmakers. Until a comprehensive subsidy law is introduced, it will help to keep Germany competitive as a film location and ensure good production conditions in international comparison. Incentive funding through the DFFF and the GMPF will remain in place in 2025.
Outlook for the film reform
The Film Subsidies Act is only one of three pillars of the planned film reform. The coalition originally planned to introduce a tax incentive model (FFZulG) and an investment obligation (InvestVG) for streaming services and TV broadcasters. Their implementation now depends on the new federal government, which will be formed after the early elections on 23 February 2025. The reform of the Film Funding Act is intended to ensure that the domestic film industry is strengthened in the long term. The adoption of the FFG is a step in the right direction.
Further measures need to be considered in order to further strengthen Germany as a film production location on an international level. The implementation of the Film Subsidy Act (FFZulG) is particularly important here, as it can make a significant contribution to strengthening the competitiveness of the German film industry.
