Section 481 · Guide for producers
What Ireland's 40% VFX Tax Incentive Means for Your Production
Key facts
- Rate
- 40% on eligible spend (standard rate is 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)
- Apply
- In writing, before Irish production begins
A production spending €1m on visual effects in Ireland, with €10m of eligible Irish spend, receives €4m back. The new 40% VFX uplift gives a significant boost to producers and financiers on large-scale feature film and television projects, and the 40% rate applies to ALL eligible spend up to €10m — not just the VFX portion.
How the rate works
The trigger is €1m of eligible spend on relevant visual effects work in Ireland. Once that threshold is met, the enhanced 40% rate applies across all eligible spend — production, post-production and VFX — up to €10 million.
What you get back
Example
€4m
€1m VFX spend · €10m eligible spend
40% on the full €10m of eligible spend.
The uplift advantage
+€800k
vs the standard 32% credit
40% returns €4m on the first €10m — that's €800,000 more than the standard 32% (€3.2m).
Illustrative figures. Actual relief depends on certification and the composition of eligible expenditure.
No Irish shoot required
Principal photography does not need to take place in Ireland. A production can qualify for the enhanced credit on its visual effects work alone — which makes Ireland a viable destination for VFX on projects shooting anywhere in the world.
How Ireland compares
The headline percentage is only half the story. What matters is the net value after tax treatment, and whether the incentive requires you to shoot in the territory.
| Territory | VFX rate | Tax treatment | Shoot required? |
|---|---|---|---|
| Ireland | 40% gross and net on all eligible spend up to €10m; 32% above, to a €125m per-project cap | Direct corporation tax credit — not taxable, so the headline rate is the net rate | No — VFX spend alone triggers the enhanced rate on all eligible spend |
| United Kingdom | 39% gross / 29.25% net on UK VFX costs; standard AVEC rate is 34% gross / 25.5% net | Taxable credit — 39% reduces to 29.25% after 25% corporation tax | No — but the enhanced rate applies to VFX costs only |
UK figures per HM Treasury and HMRC: the enhanced 39% AVEC rate for UK visual effects costs took effect for expenditure from 1 January 2025, with UK VFX costs also exempt from AVEC's 80% cap. Rates and treatment change — model both against your own financing structure and confirm current terms before committing.
What counts as visual effects work
The regulations set out 18 categories of process that may qualify as relevant visual effects work:
- Project-specific planning and pipeline setup
- Concept art, storyboarding and pre-visualisation
- Tracking
- Rotoscoping
- Paint-outs, beauty work and cleanup
- Compositing
- Asset creation including modelling, sculpting, texturing and shading, rigging or character setup
- CG animation including keyframe animation, motion capture, procedural animation or facial animation
- Effects and simulation including particles and dynamics, cloth and hair simulation, destruction or rigid body simulations
- Lighting
- Rendering
- Visual effects turnover
- Visual effects editing
- Colour correction for visual effects shots
- Export and delivery of visual effects
- Visual effects supervision, visual effects editorial and visual effects coordination, whether performed on set or in studio
- LiDAR scanning and photogrammetry performed on set
- Virtual production
Ireland's other film and television incentives
40%
Scéal — feature films budgeted under €20m
32%
Standard Section 481 rate, across all eligible projects
20%
Unscripted production credit
Frequently asked questions
How much can a production get back?
A production spending €1m on VFX with €10m of eligible Irish spend receives €4m — 40% of the full €10m. That is €800,000 more than the standard 32% rate would return. All eligible spend above the €10m at 40% is credited at 32%, up to a per-project cap of €125m.
What counts as relevant visual effects work?
The regulations list 18 categories, including pre-visualisation, compositing, asset creation, CG animation, effects and simulation, rendering, VFX supervision, LiDAR scanning and photogrammetry performed on set, and virtual production.
Do I have to shoot in Ireland to claim?
No. Principal photography does not need to take place in Ireland. A production can qualify on its visual effects work alone.
How does Ireland compare to the UK?
Ireland's Section 481 is a direct corporation tax credit, so the headline 40% is the net rate. The UK's enhanced VFX rate under AVEC is 39%, but it is taxable, which reduces its effective net value to 29.25%. Ireland's 40% also applies to all eligible spend once triggered, whereas the UK enhanced rate applies to VFX costs only. Model both against your own structure.
When do I need to apply?
An application must be made in writing in advance of the commencement of Irish production. Applications opened on 16 July 2026.
Planning VFX work in Ireland?
EGG is a full-service post-production and visual effects facility in Dublin. We can help you structure and cost the Irish VFX and post element of your production so it qualifies.
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: 21 July 2026
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