Section 481  ·  20 July 2026

Ireland Introduces Enhanced 40% Tax Credit for Visual Effects

Key facts

Rate
40% (up from the standard 32%)
Trigger
€1m minimum eligible VFX spend in Ireland
Applies to
The first €10m of ALL eligible expenditure (not just VFX); 32% above that
Irish shoot
No principal photography required (but both production and post-production are eligible for the 40% once there is a €1m VFX spend)
In effect
16 July 2026

Ireland has commenced an enhanced Section 481 tax credit for visual effects. Spend €1m or more on VFX in Ireland and the rate rises from 32% to 40% — and critically, that 40% then applies to ALL of your eligible Irish spend, not just the VFX portion. Production, post-production and VFX all qualify, on the first €10m of eligible expenditure.

Key details

  • The enhanced 40% film tax credit applies to all eligible production, post-production and VFX spend, once triggered by VFX spend of €1m.
  • Principal photography does not need to take place in Ireland.
  • The 40% rate applies to the first €10 million of total eligible spend. Once a production spends €1m on VFX, it receives 40% on all eligible spend up to €10m. Expenditure above that is credited at the standard 32%.
  • Open to applications from 16 July 2026.

How it came about

Over recent months, the incentive was developed through close consultation between the Department of Culture, Communications and Sport and the Irish visual effects industry, coordinated by VFX Ireland. EGG's Dhruba Banerjee and Gareth Young were an integral part of the small industry working group that fed directly into the process.

Frequently asked questions

What is Ireland's VFX tax credit rate?

Ireland's enhanced Section 481 tax credit for visual effects is 40%, up from the standard rate of 32%. It applies to all eligible expenditure — production, post-production and VFX, not only the VFX portion — up to €10 million; expenditure above that is credited at 32%.

What is the minimum VFX spend to qualify for the 40% rate?

A production must incur at least €1 million of eligible expenditure on relevant visual effects work in Ireland to qualify for the enhanced rate.

Does principal photography need to take place in Ireland?

No. Principal photography does not need to take place in Ireland. A production can qualify for the enhanced credit on its visual effects work alone, regardless of where it shoots.

When did Ireland's 40% VFX tax credit come into effect?

The enhanced credit came into operation on 16 July 2026, as respects applications made on or after that date.

Sources: Film (Enhanced Credit Amount for Visual Effects) (Amendment) Regulations 2026, S.I. No. 336 of 2026 · Department of Finance press release

This page is general information, not tax advice. Confirm current details with Revenue or Screen Ireland before relying on them.

Last updated: 20 July 2026

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