Baltic Film Industries Draw Foreign Shoots as Funding Strains Grow

International film production is expanding across the Baltic states, supported by financial incentives, skilled crews and varied locations. But as Estonia, Latvia and Lithuania attract more overseas projects, industry officials are confronting limits on public funding and infrastructure that could constrain further development.

Estonia added a major facility in mid-October with the opening of Ida Hub in northeastern Ida-Viru County. The $18.2 million complex, financed partly with European Union funding, combines two sound stages measuring 1,200 and 2,000 square meters with professional training and a technology startup incubator. Guests attending Tallinn’s Black Nights Film Festival can visit on Nov. 21 and 22. Another development, Tallinnfilm Studios near Tallinn Airport, is planned for 2028, with three purpose-built stages totaling 2,630 square meters.

Demand for Estonia’s production support accelerated after its cash rebate rose from 30% to 40% in April. Edith Sepp, head of the Estonian Film Institute, said 12 applications seeking €5.8 million in rebates arrived within two hours, followed by another 16 seeking €6.4 million between April and October. With the 2027 state budget being finalized, she is calling for Film Estonia’s annual allocation to reach €10 million. Nafta Films chief executive Esko Rips said decisions and payments are prompt, but the limited annual budget can leave support unavailable.

Latvia is also pursuing foreign investment as its industry contends with a small domestic market and insufficient public funding. National rebates can be combined with support from the Riga Film Fund to cover up to 50% of eligible local costs. In late September, a Latvian industry delegation visited Los Angeles for meetings with representatives of companies including Netflix, Disney, Lionsgate and Paramount.

Those financial advantages helped bring “Woman Unknown” to Latvia. Rips, who co-produced the Golden Lion winner and Danish Oscar submission, said Riga Film Studios’ availability, streets suited to the film’s wartime Copenhagen setting and Latvia’s financial package drove the choice. About €2.2 million was raised in Latvia, nearly half the production’s total budget. Danish producer Mikael Rieks also cited the local crew’s skills and shared approach to realizing director May el-Toukhy’s vision.

Latvia supported 13 international projects in 2025 and 16 so far in 2026. Its investment and development agency paid more than €3.1 million to eligible international productions last year, with that amount expected to reach €6.9 million in 2027. Domestic funding remains a concern. National Film Centre head Dita Rietuma said its approximately €6.6 million budget for 2027 remains inadequate, describing a proposed additional €1 million from the government as an initial response to persistent underfunding.

Lithuania recorded 19 international projects using its 30% tax incentive in 2025, up from 11 in 2024. Unlike its Baltic neighbors’ rebates, the scheme operates as a private tax shelter. It directed a record €25 million into productions whose total spending reached €85.7 million. Foreign productions using the incentive spent nearly €56 million locally. Sony Pictures Television’s “Star City,” an Apple TV+ spinoff of “For All Mankind,” received the scheme’s largest grant, €6.9 million.

Lithuanian officials see government-backed planning for a major studio in Vilnius as a way to address infrastructure constraints and strengthen competitiveness. Support is also expanding at city level: the Vilnius Film Fund doubled approved projects from four in 2025 to eight in 2026, when eight co-productions accessed its €150,000 budget. Vilnius hosted 65 commercials and 22 local and international film and television productions in 2025.