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Ever since the northeastern European nations Estonia, Latvia and Lithuania introduced their filming incentives about a decade ago, the region has been growing as a go-to destination for foreign shoots. No fewer than three weighty European co-productions selected for Cannes have chosen Latvia as a filming destination: Kristen Stewart’s “The Chronology of Water,” Sergei Loznitsa’s “Two Prosecutors” and Kirill Serebrennikov’s “The Disappearance of Josef Mengele.”
The Baltics’ biggest draws are their tax and cash rebates of up to 30% of local spend, which are topped by co-production and regional coin, as well as top crews, competitive production costs and diverse locations, ranging from medieval, baroque castles, soviet era buildings, to rugged sea coastline and pristine forests.
Swedish producer Piodor Gustafsson who filmed in 2024 the Frank Spotnitz’s co produced series “We Come in Peace” in Lithuania, praised ‘the “refreshingly straightforward” tax rebate, “exceptionally high” standard of crew and “abundance of strong acting talent” often fluent as well in Russian and English. Equally raving about his Lithuanian experience is French/Swedish producer Patrick Nebout whose Disney+ satire “Whiskey on the Rocks” filmed in the biggest Baltic nation in 2023.
One major drawback for shoots has been the lack of purpose-built studio space in the Baltics. This is about to change, with Estonia leading the charge, followed by Latvia and Lithuania.
The $25 million Tallinnfilm, funded by the Cultural Endowment of Estonia, will be Tallinn’s first world-class studio. Previously known as Tallinn Film Wonderland, the filming hub, under the aegis of the Estonian Film Institute, will begin construction in late 2025. Nikolai Mihailishin, service provider at Münchausen and council member of Tallinn film, says three studios covering 38,000 square feet will “hopefully” be ready early 2027. An extra 21,000-square-foot space is also planned.
“Tallinn film aims to create a state of- the-art facility integrated into the wider Estonia Film Institute ecosystem,” says Estonia Film Institute head Edith Sepp, noting that the planned complex “will support local filmmakers while meeting international production standards, thus attracting foreign projects and talents.”
Meanwhile, in Eastern Estonia’s Ida-Viru county, another studio is due to open in early 2026. The $18.2 million Ida Hub studio complex, backed by the E.U.’s Just Transition Fund, will include a 21,000-squarefoot soundstage and a smaller multifunctional studio. It will also house production training facilities.
“The Ida-Hub complex carries both cultural and regional significance,” says Sepp. “It will boost the local economy, generate jobs and bring film activity to an underrepresented
area of the country.”
For Sepp, the two studio initiatives signal her government’s solid support for the local industry, as Film Estonia’s cash rebate fund of $6.8 million will rise to $11.3 million in 2026. Among recent U.S. projects serviced locally are Paramount+/Showtime’s “The Agency,” the biggest U.S. title hosted in Estonia since “Tenet.”
Latvia’s incentives offer a maximum 50% cash rebate on local spend — 30% from Latvia’s Investment and Development Agency (LIAA) with an additional 20% from Riga Film Fund. LIAA’s Alise Ozolina says that so far in 2025, 14 titles have received $12.1 million for total eligible costs of $39.8 million.
Loznitsa’s “Two Prosecutors” (also co-produced with Lithuania), was entirely filmed in Latvia, according to co-producer Alise Gelze (White Picture), while “The Disappearance of Josef Mengele,” co-produced by Forma Pro Films, shot for two weeks in Latvia, with the rest in Uruguay.
Forma Pro Films, one of the country’s biggest service providers, also hosted “The Chronology of Water” for 26 days, as well as a few days at its unit in Malta. Forma Pro Films’ Svetlana Punte, Yulia Zayceva and Max Pavlov served as producers alongside Stewart’s Nevermind Pictures, CG Cinema Intl. and Scott Free.
To ramp up year-round filming opportunities, the group also took the initiative three years ago to build Riga’s LED Unit studio, one of the largest in Europe.
Latvia’s next world-class infrastructure: the $26.2 million Riga Stages, spearheaded by Latvia’s Film Service Producers Assn. (FSPA), is at the financing stage. “We already have the Cinevilla backlot 25 miles from Riga and the Riga Film Studios, the largest stage complex in the Baltics since 1965, but these are obsolete. Now that our rebate system is stable, it’s time to build new facilities,” says Film Angel Prods.’ Janis Kalejs, head of FSPA.
Unlike Estonia and Latvia, Lithuania’s production incentive functions as a tax shelter model, where the annual budget cap is $66.6 million. “This amount is not fixed or limited by a yearly government allocation. Instead, it is available on a demand-driven basis,” explains the Lithuanian Film Centre’s head of production Deimantas Saladžius, who feels this system gives Lithuania “a significant advantage in terms of flexibility and predictability.”
In 2024, 11 foreign titles used the incentives, including U.S. series “Truth and Conviction” and Sony Pictures Television sci-fi title “Star City.”
Saladžius says the Vilnius city municipality is also in early stages of development for Lithuania’s first large-scale soundstage. “Any new infrastructure development in the Baltic region is a positive sign for all of us,” Saladžius says.
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