Why is Malta a jurisdiction of choice for aircraft registration?

Amongst all of the blockchain/iGaming and FinTech hype that is prevalent in Malta, people sometimes forget that the country is also a prime jurisdiction for various other types of business. Malta is well known for its long history with the maritime sector, but have you also known that it offers great incentives for those individuals or businesses that are looking to register an aircraft?

In 2010, The Aircraft Registration Malta Act came into force with the aim of regulating the aviation industry in Malta. The Act focused on the registration and enforcement of aircraft mortgages, the interface of aircraft protocol with Maltese law, as well as the implementation of the Cape Town Convention.

So what are the main advantages of registering an aircraft in Malta?

Fiscal

  • Malta offers an attractive corporate taxation regime including a full imputation system on the distribution of dividends meaning the rate of tax paid can be as low as 0% in certain circumstances.
  • Malta is part of an extensive network of double taxation treaties.
  • Malta encourages the development of both finance and operating aircraft leases as well as clarity on the tax treatment of final charges, tax deductions and capital allowances.
  • Malta does not charge withholding tax on lease payments as long as the lessor is not a Malta tax resident.
  • Malta does not consider that the use of aircraft by a person who is not resident in Malta and is not an employee of, or involved with a company which owns, leases, or operates aircraft, is a taxable fringe benefit.

Registration

  • Malta offers a broad range of registration possibilities for aircraft that are registered privately and not for commercial use.
  • Malta offers owners to register an aircraft whilst it is still under construction.

Ownership

  • Malta recognizes fractional ownership of aircraft so the title can be effectively divided between numerous co-owners into fractions or percentages which can each be financed by different creditors.
  • Malta offers a wide range of top-quality airline services such as maintenance, repair, overhaul, management, training and other ancillary services, all within the country.
  • In Malta, an owner operating an aircraft, an owner of an aircraft under construction, the owner of an aircraft currently not being operated, the owner of an aircraft under a temporary title, or a trustee is able to register an aircraft in Malta.

If you are interested in registering a commercial or private aircraft in Malta, contact us today by sending us an email on [email protected]