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While an ongoing production exodus has prompted much soul-searching and handwringing in Hollywood, industry professionals in Central and Eastern Europe couldn’t be more bullish, as studio blockbusters, streaming series
and other international productions continue to flock to the region.
In the traditional powerhouse production hubs of the Czech Republic and Hungary, business is booming. A resurgent Romania has finally begun to turn the page after its fledgling rebate system was hamstrung by years of mismanagement. Bulgaria is rising fast, as is Slovakia, whose proximity to Prague and Budapest has bolstered its status as a de facto backlot for those two boomtowns. Across Central and Eastern Europe, spirits are high.
“Global content is shrinking. It’s not shrinking in this region,” says David Minkowski, head of production at leading production services outfit Stillking.
What’s driving the surge comes down to a range of factors, among them a portfolio of varied landscapes and cities that have historically excelled when it comes to reproducing Old World charm. But in the age of Hollywood cost-cutting, Minkowski sums it up best with what he describes as a “trifecta” of regional attractions: “good incentives, super-competitive labor rates and really developed infrastructure” with a legacy that dates back to the earliest days of moviemaking.
In some ways, the world of cinema is coming full circle. It was Hungarian immigrants, after all, such as Paramount Pictures founder Adolph Zukor, and William Fox, who launched the studio that bears his name, who helped to lay the foundation of modern Hollywood. Today there’s far more traffic flowing in the opposite direction to a country that boasts the second-largest production hub in Europe, after the U.K.
After an uncharacteristic downturn in the second half of 2025, Budapest is buzzing again, with Sony TriStar’s “The Nightingale,” starring Dakota and Elle Fanning, HBO prequel series “Dune: Prophecy” — following last year’s “Dune 3” shoot — and Lionsgate’s John Wick spinoff “Caine” among the productions to recently film in the Hungarian capital.
Confidence has surged since the landslide April defeat of strongman Viktor Orbán, with incoming PM Péter Magyar promising wholesale reforms to ensure the stability and competitiveness of Hungary’s 30% incentive scheme. Adam Goodman, managing partner of Mid Atlantic Films, which recently wrapped production on Ron Howard’s “Alone at Dawn” for Amazon MGM, insists such measures will “give our clients the confidence they need to keep coming” back to Budapest.
Meanwhile, in Prague, “demand is stronger than ever,” according to Minkowski, with the city recently playing host to Martin Scorsese’s “What Happens at Night,” starring Leonardo DiCaprio and Jennifer Lawrence, Netflix’s period drama “The Age of Innocence” and Sony’s “Resident Evil.” The surge is thanks in part to a new audiovisual law launched last year that upped the Czech production rebate to 25%, while introducing new measures that would “take us into the future,” according to Minkowski.
For its part, the industry is also trying to future-proof itself: Prague’s historic Barrandov Studios, which celebrates its 95th anniversary this year, will unveil two new soundstages this July, with Barrandov CEO Petr Tichý saying the expansion “make[s] perfect sense” to keep pace with strong demand. Crosstown rivals Prague Studios and Jordan Studios are also expanding their facilities, pointing to what Minkowski sees as evidence of how the Czech industry continues to meet any challenge.
“Everybody is always concerned about the capacity. How many productions can one city or country handle?” he says. “What we’ve seen time and again is it always exceeds expectations. The infrastructure grows to meet the demand. When you think you’ve reached [capacity], it can grow again.”
Of course, that growth can come with unintended consequences. For Poland, which launched its own 30% cash rebate program in 2019, the incentive scheme has proven so popular that the funds allocated for its annual budget are typically exhausted mere hours after the online application portal opens. Krzysztof Solek, of Film Poland, who serviced the limited series “Parallel Me” for Gaumont and Paramount+, insists interest remains “huge” from foreign productions — among them Henry Cavill’s recently wrapped “Highlander” reboot for Amazon MGM — but producers “can’t make a reliable financing plan” without a functioning incentive program.
Oscar-winning producer Ewa Puszczyńska (“Ida,” “Fatherland”) admits the rebate woes have been “disappointing” and “discouraging.” Yet industry groups are rallying for reforms, lobbying the government to introduce a parallel tax incentive scheme — a move that Puszczyńska says “can be more attractive for bigger productions” — along with a second annual call to relieve the pressure on the January application window. “They are trying to implement new models,” says Puszczyńska, adding that talks between the government and industry stakeholders are “really developed” and moving in a hopeful direction.
Neighboring Slovakia is one country whose fortunes are rising, with a 33% cash rebate — which can be applied to both above- and below-the-line talents — that’s lured productions including the Black Bear action adventure “Afterburn,” starring Dave Bautista and Samuel L. Jackson, and Apple and Skydance’s live-action “Matchbox” feature, starring John Cena. Meanwhile, Romania is finally coming in from the cold after a three-year stretch that saw its cash rebate suspended due to a backlog of outstanding debts. Those debts have mostly been paid off, though the cashback scheme was slashed from 35% to 30% to help the industry return to stable footing.
“Obviously, the confidence and trust and reputation of the country and the companies were affected to a significant degree,” says Bogdan Moncea, head of production at Bucharest-based Castel Film Studios, which hosted Prime Video’s historical drama miniseries “The Gray House.” Though business has been slow to return to the levels that saw productions like Netflix’s “Wednesday” and Sky Studios and Canal Plus’ “Django” setting up shop in Romania, Moncea says he’s fielding far more calls than in recent years. With all signs pointing toward an extension of the rebate program later this year, “I hope people will start coming back … and the trust will be rebuilt,” he says.
Confidence certainly isn’t flagging in Bulgaria since the launch of its 25% cash rebate in 2022, luring productions including Disney+’s “Young Woman and the Sea,” starring Daisy Ridley, and Oliver Stone’s “White Lies,” starring Josh Hartnett, which just wrapped shooting at Nu Boyana Film Studios. “A lot of big names are coming our way,” says Nu Boyana CEO Yariv Lerner, who credits the “efficiency of the National Film Center” and newly appointed Minister of Culture Evtim Miloshev, a former film producer who Lerner describes as “a fantastic partner to the film business.” Meanwhile, the Bulgarian government’s decision to lift its per-project cap from €1 million to €5 million ($1.2 million to $5.8 million) could be a potential “gamechanger” for bringing big-budget productions to the country, according to Minkowski.
That move underscores the reality facing the countries of Central and Eastern Europe: As studio execs look to squeeze ever more value from their production spend and competition for international productions heats up, governments and industry stakeholders need to be aligned to make sure every available enticement is on the table.
“It’s a balance,” says Minkowski. “The toughest part of the equation is keeping up on the incentive and government support side of things. Making sure, as the growth happens in this business … that the government is adapting alongside us. None of the countries in this region are huge,” he continues. “But we’re growing and growing and growing, and if our incentive systems want to keep up, they need to keep growing, too.”
