
The Isle of Man aircraft registry is heading towards its sixth anniversary this year with a tally of nearly six hundred aircraft registered since its inception.
We have outlined why the Isle of Man register has become the leading register for the registration of privately operated business aircraft worldwide.
The Isle of Man Aircraft Registry was established to provide a customer focused service for the aircraft registration of high quality private and corporate jets and high quality twin turbine-engine helicopters.
Isle of Man registered aircraft cannot be used for Commercial Air Transport. As the only dedicated corporate aircraft register in Europe, the Registry offers high international standards and a competitive scheme of charges.
The registry is not able to register fixed-wing aircraft below 5,700 kgs (approximately PC-12 size) other than for residents of the Isle of Man.
The registry has sixteen surveyors resident in Switzerland, USA, UK and the Isle of Man, which enables the registry to provide an efficient and cost-effective service.
To qualify for Isle of Man aircraft registration the aircraft has to be registered to a person or company from any of the countries of the British Commonwealth, the European Economic Area or Switzerland.
The principal benefits of registering an aircraft on the Isle of Man are:
The registry’s growth has also been well supported by the global aviation finance market. The register provides lenders with the comfort of a well established Government run registry where charges against an aircraft are a matter of public record.
The Isle of Man aircraft registry has established itself as the leading aircraft registry for the registration of high quality private and corporate jets and high quality twin turbine-engine helicopters as a result of many factors but particularly as a result of their customer first focus and its ‘safety with service’ ethos.
We encourage owners, their advisers and any intermediary who might be considering options for the registration of their aircraft or reviewing their existing aircraft registration to contact us to discuss potential options.
With the enactment of the Aircraft Registration Act in 2010, Malta has strengthened its position and formalised its continued commitment towards being a successful base for aviation operations. The Act and Malta’s accession to the Cape Town Convention are meant to go a long way into rendering Malta a more attractive jurisdiction for the registration of aircraft. Such is complemented by Malta’s geographic location, its EU and Eurozone membership and its highly competitive licensing fees. All these elements, combined with a set of highly attractive fiscal incentives applicable to aircraft engine and aircraft operators as well as foreign investors, render the Malta flag a very viable and advantageous option under which to establish aviation ventures.
Registration of aircraft under the Malta flag provides:
To ensure accessibility to the aircraft register to as many owners and operators as possible, Maltese law endeavours to limit nationality and form requirements while ensuring that the register is not accessible to anyone and everyone.
To this effect, persons who are qualified to register aircraft include:
Maltese law also regulates the status and effects of international registrants, the provisions of which apply solely to registrants who are not engaged in the provision of air services. The international registrant should, at all times, have appointed a resident agent who is habitually resident in Malta.
On behalf of the international registrant, the resident agent shall:
The Aircraft Registration Act has also introduced the notions of ownership through trustees and fractional ownership. This has been very well embraced in view of the modern trends relating to aircraft ownership. These options can be adopted in order to regulate the ownership or usage rights of a plurality of persons in relation to an aircraft. Through such, provision for the regulation and co-ordination of the beneficiaries’ rights and interests will be made in the trust deed which can provide for various arrangements in line with the wishes and requirements of the persons involved.
The existence of the trustee allows the arrangement to operate in a streamlined manner whilst permitting the rights of the beneficiaries to be enforced against the trustee in case of default, thereby protecting the beneficiaries.
Under Maltese law, mortgages are used as a form of security for creditors’ interest for the placing of an aircraft as a security for a loan or debt. Moreover, it is also lawful for a mortgage to be executed and registered in favour of a security trustee and, as such, the latter will be entitled to exercise all the rights in relation to that mortgage.
The role of a security trustee in such a scenario, particularly within the aviation industry, is fundamental due to the costs involved in aircraft financing. Maltese law now allows for a situation whereby a pool of financiers can appoint one of themselves as security trustee to expedite matters in relation to the administration of the loan facility.
The Cape Town Convention
Malta’s ratification of the Cape Town Convention is intended to facilitate the process of acquiring and financing aircraft. Some of the Convention’s objectives include:
Maltese law provides fiscal incentives for the aviation industry, thus being of particular interest and benefit to aircraft operators.
Income derived from the ownership, leasing or operation of aircraft or aircraft engines is exempt from tax in Malta as it is deemed to arise outside Malta for Maltese income tax purposes, irrespective of:
Maltese law provides for beneficial depreciation periods for wear and tear of aircraft and aircraft equipment. These have been decreased rendering Malta increasingly competitive even in this area. The amendments reduce the minimum period of wear and tear of aircraft for income tax purposes. Depreciation of aircraft and its constituent parts will range over a minimum number of years as follows:
Maltese law further provides for an exemption from fringe benefits applying to non-residents and to certain entities whose business activities include ownership, leasing or operation of any one or more aircraft or aircraft engines used for or employed in the international transport of passengers or goods.
Benefits of registering an aircraft in Malta include:
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This publication is intended merely to highlight issues for general information purposes only. It is not comprehensive nor does it provide legal advice. Should you have any questions on issues reported here please contact :This email address is being protected from spambots. You need JavaScript enabled to view it.
This publication is intended merely to highlight issues for general information purposes only. It is not comprehensive nor does it provide legal advice. Should you have any questions on issues reported here please contact : This email address is being protected from spambots. You need JavaScript enabled to view it.
Benefits of registering an aircraft in Aruba include:
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This publication is intended merely to highlight issues for general information purposes only. It is not comprehensive nor does it provide legal advice. Should you have any questions on issues reported here please contact : This email address is being protected from spambots. You need JavaScript enabled to view it.