Why are so many American films shot in Hungary?

Once upon a time, there was Hollywood, and perhaps it will never be the same again, at least not as we know it. Recently, FilmLA released a report highlighting a 5% decrease in Hollywood productions in 2024 compared to the previous year. A key factor in this decline is the discouraging conditions of the tax credit system, a form of funding designed to attract major production companies to a specific region through tax incentives. The situation is alarming for Los Angeles Mayor Karen Bass, who is taking action with a $750 million incentive for the California film industry. Hollywood, the incubator of American social, cultural, and political changes over the past 150 years, has long been a primary driver of the region's economic development, a colossal industry of imagination with tangible impacts on the country. According to data, the film production sector generates an economic impact of $115 billion in the U.S., creating about 680,000 jobs—equivalent to 20% of California's population. However, these figures may no longer be sustainable: the competitive incentives offered by Georgia, with production benefits of around 30%, are encouraging the relocation of productions to the Southeast of the U.S., as well as to countries like Hungary, which is increasingly hosting Hollywood projects. American productions are now seeking new destinations—more sustainable locations capable of adapting to script requirements. Lower production costs, more accessible regulations, and streamlined reimbursement processes facilitated by local assistance are challenging Hollywood's dominance.

Hungary, an international hub producing 250 films annually, stands out as a preferred destination for film productions. Since the fall of the Berlin Wall in 1989, cities like Budapest, Prague, Belgrade, Vienna, and Sofia have attracted Hollywood scripts to Central Europe. A diverse range of settings provides backdrops for films set in various historical periods, from action blockbusters to historical dramas and fantasy epics. An example is Hellboy 2 – The Golden Army: although filmed in Hungary, the movie recreated a flawless version of New York down to the smallest detail, with cars, shops, apartments, banks, and theaters identical to those in America. With cutting-edge facilities like Origo Studios in Budapest—where Oscar-winning masterpieces like Poor Things and the sequel to Denis Villeneuve's legendary sci-fi tale Dune were filmed—the country has become a flourishing center for filmmakers seeking state-of-the-art sound stages, intricate sets, large-scale action sequences, innovative special effects production, and, most importantly, better economic conditions. The Korda Studios in Budapest, the world's largest sound stage with over 1,500 titles, also offers unmatched resources. With its 15,000 square meters of film studios, Korda Studios is the second-largest in Europe and has transformed Budapest into an '80s New York or Renaissance interiors, hosting parts of films and TV series like Blade Runner 2049, Eric, and The Borgias. It's not uncommon in Hungary to encounter stars like Emma Stone, Mark Ruffalo, Harrison Ford, and Zendaya. Even the actors themselves are amazed by the meticulous offerings in the area: Ryan Reynolds declared that Nu Boyana, the Sofia-based studio owned by CEO and producer Yariv Lerner, «is on par with anything you can find in Los Angeles or New York.»

In addition to Eastern Europe, some American productions have also moved to the Mediterranean and Australia. The second season of the acclaimed TV series The White Lotus was famously set in Sicily, where the production benefited from tax incentives of up to 40% compared to California's 20%. Meanwhile, the next U.S. edition of Masterchef will be filmed in Australia, which offers tax breaks of up to 30%. The decentralisation of Hollywood—a film industry that, since the late 19th century, has been both creator and protagonist of the dreams of thousands of actors, producers, and directors—is prompting a reevaluation of the concentration of power in a single location. This shift suggests a future with not just one, but many new Hollywoods spread across the globe.