Having recorded its success within the maritime industry, the aviation industry has also fast established itself in Malta. After the introduction of the Aircraft Registration Act in 2010, Malta is aiming to become one of the largest aircraft registries in the world.
Some of the advantages of Malta’s Aircraft Registration Act are that:
- It recognises fractional ownership of aircraft and encourages the development of finance and operating leases of aircraft.
- It provides clear rules on the tax treatment of the finance charge, available tax deduction to finance lessors and capital allowances for lessees.
- It provides competitive minimum depreciation periods for aircraft and widens the registration possibilities for privately used aircraft.
The act also implements the provisions of the Cape Town Convention, thereby granting secured lenders a higher degree of protection and more effective remedies whilst allowing lower borrowing costs. This has helped create the right legislative framework for aircraft owners to register their aircraft in Malta. As an added benefit, Malta also offers a sound infrastructure for aircraft maintenance, repair and overhaul (MRO) and an advantageous tax regime.
The Fairwinds Management Limited legal team can assist our clients with the registration of the aircraft, aircraft insurance and also liaise with our tax consultants so as to ensure that our clients are kept abreast of any tax incentives which are offered to the aviation industry.
