The Government grants 700,000 euros to the Málaga and San Sebastián film festivals

The Council of Ministers approved on September 8, 2026, Royal Decree 727/2026, published in the Official State Gazette number 224, of September 10, which regulates the direct granting of two singular subsidies for a total amount of 700,000 euros to the Málaga and San Sebastián film festivals. The regulation, promoted by the Ministry for Digital Transformation and the Civil Service, is published in section I of the BOE with the official reference BOE-A-2026-18905.

Two competitions, two beneficiaries

The grants are divided between the two organizing companies of the competitions:

• Festival Internacional de Cine de Donostia-San Sebastián, SA, which receives 500,000 euros for the organization of its seventy-fourth edition.
• Teatro Cervantes de Málaga e Iniciativas Audiovisuales, SA (Málaga Procultura), which receives 200,000 euros for the thirtieth edition of the Málaga Film Festival.

Both subsidies will be paid in a single advance payment, charged to the Ministry’s credits, and are exempt from the establishment of guarantees.

Justification for the direct grant

The royal decree justifies the singular nature of both grants, which are awarded outside of competitive bidding. In the case of San Sebastián, the beneficiary company is the only one that has organized the competition since 1990, with an uninterrupted trajectory since 1953. In the case of Málaga, Málaga Procultura is the only entity that has managed the festival since its foundation in 1998, making it unfeasible to replicate its organizational structure.

The regulation is based on article 22.2.c) and paragraphs 2 and 3 of article 28 of the General Subsidies Law 38/2003, of November 17, and falls under the category exemption for cultural aid of Regulation (EU) 651/2014.

Funded activities

The subsidy to San Sebastián is destined for the Industry Department of the 74th edition, which will be held from September 18 to 26, 2026, and includes:

• The Conference on the Future of Audiovisuals.
• The Zinemaldia & Technology initiative.
• A prize of 30,000 euros for the best Spanish project in the Zinemaldia Startup Challenge competition.

For its part, the aid to Málaga finances the MAFIZ Gaming Lab program, aimed at boosting the video game industry, digital creation, and new narratives, with a call open to emerging projects.

Deadlines and justification

The execution period for the San Sebastián activities runs from January 1 to December 31, 2026, while that of Málaga extends from September 1, 2026, to December 31, 2027. The beneficiaries must submit their applications within ten business days from the entry into force of the regulation, and the granting resolution must be issued within a maximum of three months.

Justification shall be carried out through justifying accounts accompanied by an audit report issued by an auditor registered in the Official Registry of Auditors (ROAC), which must be submitted within three months following the end of the execution period.

Impact on the sector

Both competitions are key pieces of Spain’s cultural and economic projection. The San Sebastián Festival generated a total production of 47.97 million euros in its 72nd edition, with an estimated fiscal return of 8.45 million; the Málaga festival mobilized direct expenditures of 2.375 million euros in the city in 2026. The regulation thus reinforces the role of festivals as spaces for audience creation and for the structuring of the national and Hispano-American audiovisual industry.

Source: Official State Gazette, no. 224, September 10, 2026, Sec. I, p. 120851 (official reference: BOE-A-2026-18905).