Malta offers a stable, innovative legal framework for the registration of aircraft as well as a finely developed technical and support infrastructure…in addition, of course, to a much lauded fiscal environment
Building on the success of its international ship and yacht register, Malta significantly reviewed its legislation pertaining to the aviation sector in 2010. Malta offers a stable, streamlined and innovative legal framework for the registration of aircrafts, complemented by a well-developed technical and professional support infrastructure to the aviation industry. Malta's advantageous fiscal environment, supported by a well-developed financial and ICT sector, well trained workforce and strategic location have also contributed towards the island already establishing itself as an aircraft maintenance location, utilised by such companies as Lufthansa Technik and SR Technic.
Currently, there are just over 20 AOC Holders and a total aircraft registry fleet of over 150.
Some Key Features of the Maltese Aircraft Register
- Aircraft may be registered by the owner, operator as well as a buyer under a conditional sale or title reservation agreement.
- Aircraft may be registered under construction.
- Fractional ownership and ownership by trustees are allowed.
- Owners of both the airframe and the engine may be entered in the register, including their rights pertaining to those assets.
- The current size of the Maltese register and the regulator offers an efficient, effective and timely service.
- Aircraft registration fees are favourable in comparison with other European jurisdictions.
Malta has ratified the Cape Town Convention on International Interests in Mobile Equipment and the related Aircraft Protocol, providing reliable and readily enforceable rights to creditors on aircraft and auxiliary equipment. Interests and security on aircraft can thus be registered both in the national mortgage register and the international registry.
- The registration of irrevocable de-registration and export power of attorney is possible.
- Replacement engines may be granted as a security by the debtor in favour of a creditor.
- Mortgages or security interests possible to secure future rights.
- As a full EU member, Malta adheres to the safety and supervisory standards of the European Aviation Safety Agency.
- Companies registered in Malta that own and/or operate aircrafts enjoy a low effective tax rate on trading income.
- Companies registered outside Malta having their place of effective management and control in Malta that own, lease or operate an aircraft or aircraft engine, used for or employed in the international transport of passengers or goods will not be subject to tax on such profits in Malta. This is also applicable if the aircraft is called at, or is operated from, any airport in Malta.
- Assist with the registration of aircraft in Malta
- Assist in AOC application
- Liaise with local authorities
- Assist with aviation finance and leasing
- Assistance in relation to aircraft leasing and chartering
- Formulation of effective and tax-efficient cross-border strategies
- Tax and VAT advice including private aircraft structuring
- Assisting with annual compliance requirements and obligations
- Setting up of Malta companies and preparing all necessary documentation for a foreign company to have its place of effective management and control in Malta to avail of local tax benefits