Building on its success with maritime registration, Malta’s 2010 Aircraft Registration Act (Chapter 503, Laws of Malta) created a regime to regulate the registration of aircraft, mortgages and other securities over aircraft.
In terms of Maltese legislation, an aircraft may be registered by the owner who operates an aircraft, the owner of an aircraft under construction or an aircraft temporarily not being operated or managed, the operator of an aircraft under temporary title (subject to certain conditions), as well as the buyer of an aircraft under condition of sale or title reservation agreement.
There are a number of benefits and novel concepts related to the registration of aircraft in Malta which include:
- More visibility of rights and interests in aircraft through the list of Registered Aircraft;
- Incentives to encourage the development of finance and operating leases of aircraft. New legislation provides clear rules on the tax treatment of the finance charge, available tax deductions to the finance lessor and capital allowances for lessees;
- Broader registration possibilities, extending to aircraft under construction or temporarily not in service, and aircraft under a temporary title;
- Recognition of fractional ownership of aircraft;
- No withholding tax on lease payments where the lessor is not a tax resident of Malta;
- Competitive minimum depreciation periods for aircraft.
We can assist clients in both the registration of aircraft on the register as well as its fractional ownership, and in the registration of mortgages and other security over the aircraft. After registration, we provide ongoing services to assist clients in renewing certificates and assisting in maintaining the aircraft on the Maltese Register.
Through our multidisciplinary team, we also provide assistance in respect of any tax treatment and tax deductions that may be applicable in respect of the ownership and leasing of aircraft.
