Big discounts Lure International Shoots in Iceland

In the middle of a lava field in the South Peninsula of Iceland, the crew of “The Fires” prepares the next shot. In the production village, producer Grímar Jónsson and other crew members take a coffee and pastry break in an RV next to a picture machine on a truck bed in what appears to be a crater. A few hundred meters away, as steam from the famous Blue Lagoon rises in the distance, a make-up artist battles gusts of wind to reprise the role of the romantic volcano disaster movie lead.

The striking framework is par for the course in the island nation, which has seen output rise since its already healthy 25 percent cut was raised two years ago to 35 percent for higher qualified productions.

“The Fires,” with a 28-day shoot, is the latest project to wrap in the small country, which has attracted some big names, including HBO’s “True Detective: Night Country” in 2023 and this year, CBS Studios/ BBC historical series “King and Conqueror” and Lasse HallströmNordic noir “The Darkness,” also for CBS Studios.

“The Fires” has a modestly sized crew — certainly much smaller than its director, future helmer Ugla Hauksdóttir, oversaw when she shot FX’s sprawling series “Alien: Earth” earlier this year. But the commercially-targeted project, based on a popular and prescient Icelandic novel, couldn’t be more timely – the town of Grindavik, near the plateau, was recently evacuated after the Sundhnúksgígar series of volcanoes erupted. The volcano erupted again just last week, covering the nearby Blue Lagoon parking lot with lava.

Jónsson says keeping the crew safe was the biggest challenge when filming near an active volcanic area. “We had excellent collaboration with the police, the Icelandic Association for Search, Rescue and Injury Prevention, the Icelandic Coast Guard and the Meteorological Office,” says Jónsson.

Iceland has long been popular for producers looking for breathtaking locations, such as the Thorufoss Waterfall seen in “Game of Thrones” or the Vatnajökull glacier, which was the ice planet in “Interstellar”.

Now, the increased cut has brought millions of dollars into the production — about $29 million in the case of “True Detective,” the country’s largest foreign investment in culture. The shoot was so well-known that some local filmmakers began to worry that lawmakers might prioritize foreign investment over domestic creatives who rely on the government’s film fund to finance their films.

Principal Baltasar Kormákurone of the biggest champions of the Icelandic film industry, says that’s not the case. The owner of RVK Studios, which provides a state-of-the-art home for both Icelandic and international productions, says spending on international productions benefits local film production in more ways than one: “It’s really changed the industry for the better.”

He argues that it is harmful to accuse the rebate of causing wage inflation or crew monopolization. “Are you saying you should keep people out of work so you can get them cheap? When an industry grows, there are all kinds of demands, and people want more pay and betterment, and that’s healthy. So I’m all for it, I don’t want to keep people down,” says Kormakur.

But Jónsson, the producer of “The Fires,” warns that the government needs to continue heavily subsidizing local producers, especially as international shoots have driven up wages and production costs. “In my view, focused political attention is needed to support domestic production and maintain a healthy balance,” he says.

When Kormakur acquired the property in an industrial district just outside of Reykjavik, he decided to build RVK Studios with the kind of amenities he wished he had experienced on other stages. Instead of big, noisy blowers, the vast soundstage floors are heated with Iceland’s famous geothermal energy, and Kormakur requested that the stages include windows so crew members could see daylight even as they toiled on productions for long shots.

Kormakur is also developing a nearby neighborhood that will eventually offer apartments, restaurants and shops to create a vibrant manufacturing community. After “True Detective” moved its investigative unit “Alaskan” set the scene, RVK Studios most recently hosted the historical drama series “King and Conqueror” starring James Norton as King Harold of Wessex. Kormakur directed the first episode and co-produced the series, which spanned studios for more than six months, with a multitude of historical costumes and sets.

Icelandic film commissioner Einar Hansen Tómasson points out that the varied locations and screen tourism are only a fraction of the picture. Part of the goal of the increased incentive is to help develop other areas of the business – from VFX to scoring – using local orchestras.

“We want the productions to stay longer in Iceland. We want them to use the infrastructure that Icelandic manufacturers have taken the risk to invest in,” he says.

Tómasson says it helps crews gain experience working with Clint Eastwood and Christopher Nolan. And he points out that local productions also receive the production incentive.

“This is not one against the other. This is an ecosystem that we all benefit from,” says Tómasson.

“Overall, the system strengthens Icelandic industry.”