Ireland's 40% VFX Tax Credit — what it means for your production.
The EU has approved Ireland's VFX Uplift under Section 481. Productions spending €1m+ on qualifying VFX work now access a 40% tax credit — here's what that means in practice.
What happened
On 30 April 2026, the European Commission formally approved Ireland's Visual Effects Uplift — an enhancement to the existing Section 481 Film Tax Credit announced in Budget 2026. The measure is now live and operational.
The numbers
Ireland's standard Section 481 credit already offered 32% back on all qualifying Irish expenditure across cast, crew, post-production, goods and services sourced in Ireland. The VFX Uplift takes that to 40% for qualifying VFX projects, making it one of the most competitive incentives in the world for effects-intensive work.
The key details
40% tax credit on qualifying Irish VFX expenditure. Minimum spend of €1m in eligible VFX work to trigger the uplift. Cap of €10m per project at the enhanced rate — expenditure above that reverts to 32%. No principal photography required in Ireland — VFX-only projects qualify. Must pass Ireland's cultural test or meet official co-production requirements. Crucially, Ireland's rate is a true net rate. Unlike the UK's equivalent credit — which is taxable income and nets at around 29.25% after corporation tax — Ireland's 40% means 40% back. No hidden reduction.
Why it matters
Ireland was already home to world-class VFX work — Marvel's WandaVision and Spider-Man: No Way Home, FX's Shōgun for Disney+, all carried out by Irish studios. The VFX Uplift is designed to accelerate that, positioning Ireland directly against the UK, France, New Zealand and Canada, all of which already had specialist VFX incentives in place. Production spend in Ireland hit a record €544m in 2025 — up 26% year on year. The VFX Uplift is the government's signal that it intends to compete at the highest level for the most technically demanding work.
What it means for MadBad
We work across animation, motion, VFX and post-production — and we're based in Dublin. The combination of this incentive, Ireland's skilled workforce, and our production capabilities makes this a genuinely compelling conversation for any international producer looking at where to place post and VFX work. If you're planning a production and want to understand how Section 481 and the VFX Uplift could work for your budget, we're happy to talk it through.
Want to talk it through?