In conversation with Joana Simões Coelho: what SCRI.PT changes for film production in Portugal

We sat down with Joana Simões Coelho, an associate at Morais Leitão, to discuss SCRI.PT, Portugal’s new incentive framework for the film and audiovisual industry.

In this conversation, we explore what is changing in practical terms, how the new regime strengthens Portugal’s position as a production destination, and the key legal considerations that producers and studios should consider when structuring projects under this framework.

1. Portugal has just overhauled its film incentive framework with SCRI.PT. For those who haven't been following, what is it and why does it matter?

SCRI.PT – the Audiovisual and Film Industry Funding Programme – came into force in February 2026, and it is the first time Portugal has had a proper, consolidated, long-horizon incentive framework for film and audiovisual production. The previous system, based on the cash rebate model since 2018, would shortly no longer financially sustainable because EU reimbursements under PT2020 were coming to an end in 2026. Meaning this was not just a political decision to do something nice for the film industry; there was a structural reason to act, and to act now.

SCRI.PT has a total budget of €350 million for 2026 to 2029, combining €200 million in production incentives and a €150 million mutual guarantee credit line. That is a significant step up. The old cash rebate had a €14 million annual envelope; the cash refund (for larger productions), €20 million. The new framework essentially consolidates and expands both, and adds a financing tool that didn't exist before. What SCRI.PT does, structurally, is merge the existing Cash Refund and Cash Rebate into a single scheme, RIPAC, while introducing a new medium-budget track alongside the existing large-budget incentive.

For productions considering Portugal, the signal is meaningful. The Portuguese Government has made a deliberate, multi-year commitment, instead of keeping up the renewal of annual programmes on a case-by-case basis. That matters for planning.

2. Walk us through the main support mechanisms, and which type of project stands to gain most?

There are two main instruments under SCRI.PT. The first is RIPAC, which is the direct incentive side. RIPAC has an annual budget of €50 million, running from 2026 to 2029, funded by the State Budget, ICA (Instituto do Cinema e Audiovisual), and Turismo de Portugal. Within RIPAC there are two tracks: one for large-budget productions and one for medium-budget. The large-budget track, aimed at productions spending at least €2.5 million in eligible Portuguese expenditure, provides 30% support on the first €2 million and up to 25% above that threshold, capped at €6 million per film or season and €3 million per episode. Eligible costs include local payroll and payments to Portuguese companies, paid in a single instalment after final validation. The medium-budget track is new, has a €15 million annual allocation, and its detailed implementing ordinance is still pending, so that part of the framework is yet to come into focus as we speak.

The second instrument is the Mutual Guarantee Line, managed by Banco Português de Fomento. It has an allocation of €150 million for 2026–2029 and is available to productions that have already obtained a RIPAC incentive. It's a credit facilitation mechanism. Essentially the State is helping productions access bank financing against their incentive entitlement, thus intervening in a domain which has historically been an obstacle, especially for independent producers.
On who benefits most: the large-budget track is clearly designed with international productions in mind. But I would like to flag the medium-budget route as genuinely interesting, too. It fills a gap for co-productions and independent projects that never quite fit the old cash refund threshold. That market has been underserved until now.

3. How does SCRI.PT change Portugal's competitive position versus other production destinations in Europe?

Portugal's fundamental advantages have not suddenly changed: the locations, the weather, the crew costs, the safety, the proximity of everything. What SCRI.PT changes is whether those advantages are supported by a credible financial framework, because that's what actually moves the needle in production decision-making.

The scale is also now relevant in a way it was not before. €350 million over four years is a programme that starts to be competitive in comparison with what other mid-sized European production destinations are offering. And the structure – with a credit line alongside the direct incentives – addresses a real friction point that the old system simply did not. Productions do not just need incentives; they need to be able to access financing against those incentives, and the Banco de Fomento line makes that possible in a more systematic way.

The co-production treaty network is also worth mentioning. Portugal has 12 bilateral co-production agreements, and negotiations are under way with Canada. If and when the Canada agreement materialises, that will be very meaningful, as Canada is one of the most active co-production markets in the world, with well-developed public financing infrastructure. A bilateral agreement would give productions the ability to stack incentives from both sides of the Atlantic in a way that is currently not available.

Portugal still has a lot of ground to cover in terms of awareness, though. These incentives are well designed, but they are not well known internationally. Some of the most active entertainment law practices in London – the firms that actually advise studios and independent producers – have, in my experience, a very limited working knowledge of the Portuguese system, because it has not called out to them in the past. That is a gap, but it is also an opportunity, which is part of why we (Morais Leitão) are investing in this area.

4. What should producers and studios actually watch out for when structuring a project under SCRI.PT, and where does specialist legal advice make a material difference?

A few things stand out. First, the medium-budget track is still awaiting its implementing ordinance. The decree-law is in force, but some of the detailed access conditions for that stream are not yet published. That is not unusual for recently enacted legislation, but productions targeting that track need to structure themselves with flexibility and should take advice rather than assuming the final rules will mirror the large-budget track in every respect.

Second, entity structure. An implementing ordinance is still pending to operationalise key aspects of the SCRI.PT framework, and in the meantime applicants need to be registered entities in Portugal (this includes the possibility of creating a special purpose vehicle) and listed in the national register of film and audiovisual companies. International productions typically achieve this either by setting up a Portuguese company or branch, or by partnering with a local production company. The choice between those routes has real tax, labour law, and IP ownership consequences and they should be resolved at the outset, not retrofitted during production.

Third, the public funding cap. SCRI.PT sets a ceiling of 50% of final eligible cost for productions, rising to 60% for international co-productions. Mapping what counts as "public aid" across a complex financing structure – what with multiple national incentives, European fund support, and private equity – requires care. Getting it right means not leaving money on the table; getting it wrong means facing clawback or eligibility problems downstream.

Finally, Portuguese labour law applies in full to anyone working in Portuguese territory. Despite the absence of any ‘real’ guild or union standards, the distinction between employment contracts and service provision agreements matters more than people sometimes expect (for social security contributions, liability, and compliance with sector-specific statutes). These are details that can look manageable in the abstract but quickly become complicated on a live production.

5. Looking ahead, what does this framework open up and where do you see the real opportunity for Portugal over the next few years?

The most significant opportunity, honestly, is an awareness one. The framework is now good – arguably better than most people outside Portugal realise. The gap between the quality of the incentives and their international visibility is where I think the biggest short-term impact can be created.

Portugal has already attracted large international productions: Fast & Furious X, House of the Dragon, Star Wars’ series The Acolyte and Netflix's Damsel all filmed here in recent years. Those are not niche, mini-budget projects. But they happened largely through individual discovery rather than through any systematic awareness of what Portugal as to offer. SCRI.PT changes the conversation partly because the numbers are now large enough to get attention in the rooms where production decisions are made.

The Canada angle is also worth watching. Negotiations for a bilateral co-production agreement are underway, and if that agreement comes into force, it will represent a new source of high-quality production activity.
Longer term, I think the combination of SCRI.PT, the co-production treaty network, and Portugal's underlying production advantages creates a credible case for the country to become a go-to European destination for mid-to-large international productions. The pieces are there. The work now is making sure the right people know about them, which, to be entirely transparent, is partly what we are trying to do at Morais Leitão. We have been investing in this practice area precisely because we think the window is open and the market is currently both underpopulated and undervalued.