How the National Film Institute of Hungary Is Bridging the Gap Between Hollywood and Budapest

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As a seasoned gamer with decades of experience under my belt, I can confidently say that the world of film production is not dissimilar to the realm of gaming. Both are creative industries where innovation and technology play crucial roles, and both rely heavily on incentives to thrive.

Production tax credits have been in the news quite a bit, as of late.

As a movie enthusiast, I’ve been closely following the latest developments in Hollywood, and it seems like the filming scene in L.A. is reaching record lows, according to recent data by FilmLA released on October 16th. This trend has been particularly noticeable in California, which Tony Vinciquerra, CEO of Sony Pictures Entertainment, mentioned as the state that’s been hit hardest and hasn’t shown much response to incentive changes.

In the midst of recent news updates, the Made in Hungary Film Festival occurred, a collaborative event between the National Film Institute of Hungary and Liszt Institute New York. This event unfolded in Los Angeles, where it showcased both domestic and foreign films that were produced within Hungary’s borders. The country boasts several attractive production incentives to entice Hollywood productions for filming.

At a closing event celebrating products from Hungary, attendees indulged in macarons dyed in the hues of the Hungarian flag – red, white, and green. It was revealed that Yorgos Lanthimos’s film Poor Things, which garnered multiple Oscars this year at the Academy Awards, including for exceptional production design by Hungarian set decorator Zsuzsa Mihalek, won the accolade for best international feature produced in Hungary.

According to Ákos Bertalan Pal, CEO of the National Film Institute, producers often praise the Hungarian below-the-line staff for their exceptional reliability. Currently, they are finalizing a study that examines the film industry’s influence on the taxation system. The findings suggest that even with incentives, the state budget benefits financially. Simultaneously, it generates employment opportunities and boosts the country’s GDP.

In recent years, the formation of the National Film Institute has propelled Hungary onto the global stage as a significant filming location. International productions such as Angelina Jolie’s award contender “Maria” and Brady Corbet’s grand production “The Brutalist” have chosen Hungary as their filming destination.

Based on NFI reports, Hungary’s total production expenditure peaked in 2023 at a staggering $910 million, marking nearly a fourfold increase from the $183 million spent in 2018. Meanwhile, the NFI is expanding its studio complex with the addition of four new soundstages, each spanning 2,500 square meters. This expansion brings the total studio capacity to an impressive 12,670 square meters.

In a conversation, THR interviewed Csaba Káel, the Hungarian film commissioner, discussing the attractions for Hollywood in Hungary, enhancements made to the nation’s production facilities, and his aspirations to establish Hungary as a central point of the European film industry.

What is your pitch to filmmakers who are considering shooting in Hungary?

Established in 2020, we launched the National Film Institute as the primary hub of Hungary’s film industry. As a comprehensive body, we manage the national film fund, operate film studios, and boast significant assets such as the Hungarian Film Archive and our own film laboratories. Our strategic goal is to foster strong connections, which brings us here in L.A., where I recently returned from Paramount Pictures – an esteemed studio founded by a Hungarian visionary, Mr. Adolph Zukor. With a rich 123-year film legacy, our endeavor aims to forge a significant bond between Budapest and Hollywood.

There’s no cap on the tax rebate percentage, with the standard being set at 30%. Unlike other places, this rate doesn’t have any limits. In Hungary, where costs align with their true value, director Brady Corbet mentioned this while shooting his film “The Brutalist.” Interestingly, the tax rebate has been extended for another six years in Hungary. This means that a substantial budget of approximately $3 billion euros ($3.2 billion USD) will be provided by the Hungarian government. Remarkably, California’s Film Commission is set to offer an even larger budget of around $4.2 billion.

Outside of the tax rebate, what else does Hungary offer?

In and around Budapest, we boast an advanced studio network, comprising of five complexes: our flagship, the state-owned NFI studios, and four privately-owned ones. Despite being separate entities, we maintain a strong collaborative spirit as our shared goal is to boost productions in Hungary. In response to the challenges posed by the COVID-19 pandemic, we’ve expanded our studio system by constructing four new soundstages. By the start of next year, we aim to expand our studio capacity by 22%, adding an additional 12,000 square meters.

How do you attract workers to the film industry?

Our educational initiative goes beyond just constructing studios. It’s crucial to create a comprehensive learning environment. We recently unveiled two new facilities, one being a pioneering Digital Studio – the first of its kind in Europe – equipped with a large LED screen for film students to hone their skills on. Our expertise extends not only to postproduction but also to music scoring. Renowned maestro Francis Ford Coppola visited Budapest to score his movie ‘Megalopolis’. Budapest is home to eight orchestras, providing ample opportunities for anyone looking to make use of them in their work.

What is your hope for the future of filmmaking in Hungary?

It’s crucial for us to continuously improve and create top-tier content. Collaboration is key, given Hungary’s relatively small size. We can’t afford to pause in our development, as we strive to establish a prominent role within the European film industry. To achieve this goal, we’re organizing a film market, strategically positioned between the West and East, where we can share thoughts on co-productions and distribution.

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2024-10-30 18:55