Transport Malta – Aviation
Transport Malta assist in fostering safety and the economic development of civil aviation in Malta within a balanced safety oversight system in which both the State and the aviation industry share the responsibilities for the safe, regular and efficient conduct of their activities.
Malta Aircraft Registration has become popular in recent times as there are several attractive benefits. The Maltese government has taken steps to create a framework that improves aircraft standards and aircraft operator licensing — therefore leading Malta to become a hub for aviation.
Papilio Services assist our clients with:
What are the advantages of Aircraft Registration in Malta?
Aircraft registration in Malta has several tax benefits given to the owner of the plane. Here are some of the main advantages:
- An attractive Corporate Tax System in Malta
- Malta Tax Refund System allows for international tax planning opportunities by reducing the effective tax rate to 5% for trading companies.
- Malta Participation Exemption is the relief from taxation for a shareholder in a company on dividends and capital gains received from the sale of shares.
- No withholding tax on lease payments where the lessor is not a tax resident of Malta
- Malta has an extensive network of double tax treaties with over 70 jurisdictions, including the United States. See the full list here
- The aircraft leasing VAT programme can help reduce the VAT liability
- There is no import duty payable in Malta on civil aircraft and aircraft are exempt from Maltese stamp duty purposes
- Malta has been a part of the European Union (EU) since 2004
- Malta has one of the lowest VAT rates within the EU
- Recognition of fractional ownership of aircraft. Fractional ownership means co-owners of the title may divide ownership into specified fractions or percentages can be financed by different creditors who can only seek security over that particular fraction.
- No restrictions on the nationality of shareholders and directors of Maltese aviation companies
- Malta has fantastic local aviation services that are available to meet any of your needs regarding aircraft maintenance, aircraft management, aircraft repair and control
- The €17 million Safi Aviation Park offers protected airside facilities for aviation and related activities. Safi Aviation Park complies with aviation standards set out by the International Civil Aviation Organisation (ICAO) and the European Aviation Safety Agency (EASA)
- The Cape Town Convention provides lessors with a higher degree of protection and more effective support while allowing lower borrowing costs.