The European Union’s Creative Europe MEDIA programme (2021–2027) offers substantial support for film and audiovisual projects, making it a key funding avenue for producers across Europe and beyond. Administered through competitive calls via the EU’s Funding & Tenders Portal, this programme is governed by EU regulations that require careful adherence to both legal and procedural standards.
To qualify, applicants must be independent production companies legally established in a participating country, which includes all EU Member States and select associated nations and the project must demonstrate a strong cross-border element. These requirements go beyond formality: they are foundational to unlocking financial support for development, production, distribution, and training activities.
Meeting EU Funding Criteria: Compliance Is Key
Applications under Creative Europe MEDIA must be meticulously prepared. Aside from meeting strict submission deadlines, producers must file comprehensive documentation. Importantly, applicants must avoid “double-dipping” between funding schemes that is claiming the same costs from multiple sources, which would breach EU thresholds on cumulative state aid.
Legal Structures for Film Production in Malta
In Malta, the standard legal vehicle for film production is the private limited liability company (Ltd). It is common and advisable for producers to set up a special purpose vehicle (“SPV”) in the form of a newly incorporated Maltese Ltd company for each film. This company then holds the production rights, applies for funding, and isolates project-specific liabilities.
This structure not only offers limited liability protection but also satisfies eligibility requirements as an independent producer under both local and EU grant rules. Corporate service providers in Malta can facilitate the quick and efficient setup of such entities while ensuring full compliance with Maltese corporate law.
Structuring Co-Productions: Local and Cross-Border
Film co-productions often involve multiple entities across jurisdictions. In such cases:
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Each producer typically forms a separate legal entity in their respective country.
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The co-production agreement governs each party’s creative and financial contributions.
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The Maltese entity handles compliance with local rules and applies for national grants.
Where applicable, producers may structure their cooperation through joint ventures or shareholder agreements within a shared SPV. This approach is especially beneficial when claiming incentives or grants across multiple jurisdictions.
Foreign producers with no local presence may register a branch office or partner with a Maltese service production company under a co-production agreement. Notably, many Maltese funding schemes include “first-look” clauses or procurement obligations, so a local corporate structure often provides strategic advantages.
Regardless of structure, all entities must meet compliance requirements, including proper bookkeeping, licensing, annual returns, and employment law obligations—especially when engaging foreign talent, which often requires work permits.
Eligibility Requirements: Legal and Operational Best Practices
To maximise the likelihood of a successful funding application, producers should adhere to the following best practices:
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Confirm cultural and nationality criteria: Projects must meet Maltese cultural eligibility rules.
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Prepare full documentation: This includes a signed co-production agreement, detailed budget, financing structure, script, and CVs of key personnel.
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Follow application guidelines exactly: Funding calls typically include templates and technical instructions that must be followed precisely.
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Ensure financial credibility: Audited financial statements or bank references are often required.
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Maintain transparent records: Expenditures must be supported by invoices and receipts, as grant authorities usually require post-project audit reports.
Early involvement of a Maltese corporate service provider can be instrumental in ensuring all structural and documentary requirements are met.
Leveraging Co-Production Treaties and International Frameworks
Malta is a party to the Council of Europe Convention on Cinematographic Co-Production (revised) (CETS No. 220). The purpose of the revised Convention is to provide a legal and financial framework for the co-production of feature-length films involving production companies established in three or more states Parties. The revised Convention can also be used as a bilateral framework in the absence of a specific co-production treaty between two Parties. The participation of one or more co-producers who are not established in such Parties is possible, provided that their total contribution does not exceed 30% of the total cost of the production. The revised Convention applies to co-productions where all of the production companies involved are established in Parties to the updated text. The 1992 Convention will continue to apply to any co-production where at least one of the companies involved is established in a Party only to the 1992 Convention.
Malta has also signed bilateral co-production agreements with key countries. Notably:
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Canada: Under the 1997 treaty, approved productions are treated as national films in both jurisdictions, with 20–80% co-production contributions and a requirement for nationals from each country to occupy key roles.
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China: The Malta-China co-production treaty allows national film status in both countries. Productions must take place in one or both territories (or include a third party), and contributors must be Maltese or Chinese nationals.
Conclusion:
Navigating film funding opportunities in Malta demands a strategic blend of legal structuring, compliance, and documentation. Independent producers must establish a suitable Maltese entity, observe national and EU eligibility criteria, and ensure full procedural compliance throughout the application and production process.
At Zerafa Advocates, we support producers at every stage, from setting up the appropriate corporate structures to preparing applications that align with funding body expectations. Our expertise ensures your film project is both legally sound and competitively positioned for grant success.
