Spain's vice president Maria Teresa Fernandez de la Vega announced on Monday that an 18% tax write off will be included in a new film law for producers, broadcasters and investors. Butthe industry remains cautiously optimistic awaiting clarification on how it will work.

De la Vega told industry figures and the press that broadcasters and producers will be able to write off 18% of their investment in Spanish films, while private investors' write-offs have been raised from 5% to 18%. The question remains, however, whether private investors will still be required to register as producers in order to access the break, and in line with recent changes to the UK tax laws will the write-offs be limited to productions' domestic expenditure'

Producers, distributors, exhibitors and broadcasters have discussed the general guidelines, but hope to see the final draft today, in advance of the bill being presented at Friday's presidential cabinet meeting for a vote to initiate the parliamentary debate.

But one sector that felt slightly aggrieved was exhibition, when it heard the government's plan to maintain the quota that requires 25% of screens be dedicated to Spanish product.

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