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Ireland Unveils 40% VFX Tax Credit, Expanding Digital Games Incentives
8 Oct
Summary
- Ireland introduces 40% tax credit for VFX work over €1 million
- Digital Games Tax Credit extended for 6 more years
- Fís Éireann/Screen Ireland's budget increased by €2 million
In a move to strengthen Ireland's position as a hub for visual effects and digital content creation, the Irish government has announced a series of significant changes to its film and gaming incentives. As part of Budget 2026, the country has introduced a new 40% tax credit specifically targeting VFX work, provided that projects spend at least €1 million on qualifying visual effects.
This enhanced incentive is designed to help Ireland better compete with other countries like the U.K., France, New Zealand, and Canada, which already offer specialized tax breaks for effects-intensive productions. Additionally, the government has renewed the Digital Games Tax Credit for another six years, ensuring continued support for the country's thriving gaming industry.
Alongside these initiatives, Fís Éireann/Screen Ireland, the national screen agency, has seen its 2026 budget increased by €2 million, bringing its total funding to €42.9 million. This 5.1% boost is expected to further strengthen Ireland's domestic filmmaking capabilities and attract more international productions to the country.
The Irish VFX and post-production sectors have already contributed to high-profile projects like Marvel Studios' "WandaVision" and "Spider-Man: No Way Home," as well as FX's "Shogun" for Disney Plus. With these new incentives in place, Ireland is poised to solidify its reputation as a premier destination for visual effects and digital content creation.
