Malta Aircraft Registration
Drawing on our experience from other aviation clients whom we have managed our aviation consultants can assist with all your Malta aircraft registration and aviation business requirements. We have helped many owners successfully move or set up aviation operations in Malta and have assisted individuals with the Malta aircraft registration process (Malta Company Formation services). As a leading aviation centre, Malta has a number of attractive benefits for those seeking to establish aviation operations and our Malta Tax Advisors will seek to maximise all of the opportunities available from the initial planning stages through to the commencement and continuation of operations.
The Aircraft Registration Malta Act, 2010
The Aircraft Registration Malta Act, 2010 has been in force since October 2010 and has helped further enhance Malta’s position as one of the leading aviation centres in the world. The Aircraft Registration Malta Act developed a new legal infrastructure through which aircraft registration is made easier and also integrated the Cape Town Convention and the Aircraft Protocol into Maltese legislation. A number of aviation tax initiatives were introduced with the purpose of attracting foreign investors to set up their aviation business in Malta.
What are the advantages of Malta Aircraft Registration?
The Malta tax system encourages foreign investment and the full imputation system adopted by Malta, makes it possible that foreign shareholders could claim up to 6/7th’s of the tax paid by the company, thus reducing the effective tax leakage in Malta to 5%. Malta also has a wide network of double taxation treaties and a number of beneficial aviation tax exemptions and rulings. This provides for a myriad of aviation tax planning opportunities for those looking to either set up an aviation business or carry out aircraft registration in Malta.
Aircraft registration in Malta could be beneficial from a VAT perspective for individuals looking to purchase an aircraft or aircraft engines for private use only. The aircraft leasing VAT programme can help reduce the VAT liability on new aircraft purchases providing certain conditions are achieved.
The Aircraft Registration Malta Act now recognises fractional ownership, which is becoming more common within the aviation industry. The fractional ownership of the aircraft can be specified in either fractions or percentages and can be financed by different creditors whom can only seek security over that particular fraction. A fractional interest can be registered with the Director General of Civil Aviation, whom will issue a Certificate of Registration verifying and confirming that fractional interest.
There is no import duty payable in Malta on civil aircraft and aircraft are exempt from Maltese stamp duty purposes. Finance and Operating leases are also possible in Malta and The Aircraft Registration Malta Act sets out clear rules in respect to finance and operating leases of aircraft. The Inland Revenue department gives clear guidance in respect to the tax treatment of a finance charge and any available deductions to finance lessors and capital lessees. There is no withholding tax on lease payments where the lessor is not a tax resident of Malta.
Who is eligible to register an aircraft in Malta?
For successful aircraft registration an applicant must meet one of the following conditions:
- Be the owner of the aircraft carrying out operations
- Be the owner of the aircraft that is under construction or temporarily not being operated
- Be an operator of an aircraft under a temporary title which satisfies certain conditions
- Be a buyer of an aircraft that is placed under a conditional sale, which satisfies certain conditions and outlines whom is authorised to operate the aircraft.
What are the Malta aircraft registration requirements?
The Aircraft Registration Malta Act distinguishes between mandatory entries in the register and others which are not compulsory for aircraft registration but are allowed. The mandatory requirements for Malta aircraft registration are as below.
- All physical details of the aircraft and engines (including replacement engines for that aircraft)
- Name and Address of registrant
- Details of any mortgages registered over the aircraft
- Any power of attorneys related to de-registration, security of the mortgagee, third party rights over the aircraft.
For assistance with regards to Malta aircraft registration or setting up aviation operations in Malta, please contact us.
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Aviation Tax Planning
Aircraft Leasing VAT Programme