Over the past decade, Estonia, Latvia, and Lithuania have emerged as popular destinations for international productions, thanks to generous incentives of up to 30–50% in rebates, competitive costs, multilingual acting talent, and diverse locations ranging from medieval castles to Soviet-era architecture and unspoiled nature.

Recent Cannes titles such as Kristen Stewart’s The Chronology of Water, Sergei Loznitsa’s Two Prosecutors, and Kirill Serebrennikov’s The Disappearance of Josef Mengele all filmed in Latvia, underscoring the region’s growing appeal.

One long-standing drawback has been the lack of purpose-built studios, but new infrastructure projects are about to change that. In Estonia, the $25 million Tallinnfilm complex, backed by the Cultural Endowment of Estonia, will begin construction in late 2025, with three soundstages planned for completion by 2027. 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. Meanwhile, the $18.2 million Ida-Hub in Ida-Viru county will open in 2026, combining a 21,000-squarefoot soundstage, multifunctional studio, and training center to support both local talent and regional economic growth.

Latvia, which offers Europe’s most competitive rebate system of up to 50%, has already serviced 14 projects in 2025 alone, totaling nearly $40 million in spending. Service provider Forma Pro Films has hosted multiple international shoots, including Stewart’s The Chronology of Water, while also investing in new facilities such as the LED Unit studio. Plans for the $26.2 million Riga Stages promise further capacity.

Lithuania operates a flexible tax-shelter model with a $66.6 million cap, attracting 11 foreign productions in 2024, including Truth and Conviction and Sony’s Star City. Vilnius is now considering its first large-scale soundstage, which would further strengthen the region.

Together, these developments signal a new phase for the Baltics: with world-class studios on the horizon, streamlined incentives, and proven international interest, Estonia, Latvia, and Lithuania are positioning themselves as major players in Europe’s film production landscape.

Read the full article by Annika Pham in Variety

Photo: Swedish Torpedo by Frida Kempff, a Swedish-Estonian-Danish-Finnish co-production. Source: Viru Film Fund, vff.ee