Tax Incentives Might Be The Key: A Case Study (and Road Map) for Growing the Live Music Industry (in Spain)

A new report by Sympathy for the Lawyer pars Live Music with the Film Industry and correlates a change in tax incentives as its main driver

"Live Music In Spain has grown 370% during the past 10 years"

Tax Incentives Might Be The Key: A Case Study (and Road Map) for Growing the Live Music Industry (in Spain):

A few days ago, we came across a powerful study by Sympathy For The Lawyer that illustrates how relevant music is for an economy. 

What’s even more interesting is that this report suggests that the growth of the live music industry in Spain (370% in the past decade) is linked to the introduction of several improvements on tax incentives for live performances.

Here are some Key Learnings from the study:

1. Music Drives Massive Economic Impact:

   • Concerts and festivals in Spain generated €5.314 billion in 2024. That’s everything from direct revenues (bars, sponsorships, etc.) to the ripple effects on hospitality, local businesses, and transport.

2. Live Music Is Par Football and Surpasses Cinema:

   • In 2024, live music generated €725.6 million, putting it on par with football revenue (only slightly behind) and surpassing the cinema industry by 52%.

3. Tax Incentives Drive Exponential Growth:

   • Over the last 10 years, the live music sector has exploded, growing by 370%. This surge is largely due to the introduction and improvement of tax incentives for live performances—particularly since 2021, when new financing mechanisms made tax deductions easier for promoters.

What’s next?

This report could be taken as a road map on how to approach Government Officials asking for better tax incentives for live music in your city.

However, before going down that road, it’s important to get music lawyers into this topic to help us understand how the “Financing Contract as a Formula for Tax Investors” works and what would be the best way to design it for your city.

We already reached out to Sympathy For The Lawyer to help us better understand how these types of incentives work.

Stay tuned!

PS:

Are you interested in helping music be an integral part of your city’s public strategies and ensure the music ecosystem is well supported?

Then join us at the upcoming Fayetteville Arkansas Music Cities Convention in September on 16-18th September. You can get your tickets here.

Are you part of your city’s Government and want to change the public policy culture of your city so it supports music systematically?

Then consider hosting the Music Cities Convention in your city. Write to pablo@sounddiplomacy.com and we’ll share all the insights on how to make this possible.