The Malta Aircraft Registration Act of 2010 is the essential wellspring of Maltese Law on airplane registration. The demonstration gives the arrangements of the Cape Town Convention on International Interests in Mobile Equipment, which means to normalize exchanges including movable property such as aircraft.
Malta‘s proactive improvement of its public regulation has laid out the best climate to help the development of the avionics business, which produces huge monetary incentive for the Maltese islands. Registering an aircraft as a private jet or a corporate jet in Malta has become an interesting opportunity.
This ensures that the third parties’ rights are enforceable and the international interests are protected, irrespective of the aircraft’s nature.
The origin of this Act brought about Malta having one of the most respectable airplane enlists and helping the country’s flight area. This makes co-possession legitimate and permits numerous financial backers to enroll as the owners of the airplane. Co-funding and various security interests can be enrolled as discrete parts, financeable by various creditors. In addition, the Act perceives trusts as proprietors.
Advantages associated with registering an airplane in Malta
The upsides of having a Malta-registered airplane are not at all short.
The principal attractions can be summarized as follows:
- Transparency of all rights and interests in airplane;
- Broad registration opportunities for all airplanes, whether utilized for private or business air transport;
- Assistance of requirement of mortgages and other security interests;
- No withholding tax on lease payments where the lessor is not a tax resident of Malta;
- Relevance of the Cape Town Convention gives lenders a more significant level of insurance and more compelling implementation cures while permitting lower borrowing costs;
- Tax refunds to shareholders on distribution of profits;
Qualified standards to register an airplane in Malta
The qualification criteria for non-residents of Malta relies upon whether the airplane is for private or business purposes.
Under Maltese regulation, a working permit might be allowed by the Transport Malta Civil Aviation Directorate (TMCAD) under specific circumstances, including privileges of access to specific routes or markets, as may be specified in the permit.
An air transport undertaking giving air transport administrations must show, to the satisfaction of the TMCAD, that:
- its chief business environment and, if any, its registered office is situated in Malta;
- its fundamental occupation is air transport, in confinement or joined with some other business activity of airplane or fix and upkeep of airplane;
- it is owned and continues to be owned directly or through larger part proprietorship by EU member states or nationals of member states, which must consistently have viable control of the air transport undertaking; and
- it is in control of a valid air operator’s certificate (AOC) determining the activities to be detailed in the working permit.
Criteria to fulfill to get a permit/license
Nationality’s requirements to satisfied in order get a permit
Under Maltese law, a candidate must satisfy two criteria:
- Its principal place of business and, if any, its registered office should be situated in Malta; and
- Over half of its shareholding must be owned and effectively controlled by EU member states and/or nationals of member states through one or more intermediate undertakings.
Financial requirements to satisfied in order to obtain a licence
An undertaking applying for an operating permit should prove to the TMCAD that:
- it can meet its actual obligations established under realistic assumptions, for a period of 2 years from the start of operations; and
- it can meet its operational expenses incurred by operations, according to its business strategy and established under realistic assumptions, for a period of three months from the beginning of operations, without considering any pay from its operations.
For the purposes of demonstrating the financial requirements, each applicant must submit a business strategy.
Qualifying registrants might enroll one or numerous airplanes in Malta under different limits.
Tax Benefits for Private Aircraft in Malta
Air transport undertakings that are registered outside Malta but managed in Malta are taxable in Malta on a source and settlement basis; while air transport endeavors that are registered in Malta are taxed on their worldwide income.
Personal tax in respect to qualifying employment in aviation.
Under the Qualifying Employment in Aviation (Personal Tax) Rules, expatriates that hold a qualified job or office under a passing business contract in the flight business in Malta might pick to profit from a reduced flat rate of tax of 15% on their work pay got from work or obligations completed in Malta.
Formal and documentary requirements for Aircraft registration
Under Maltese regulation, the process for registration of an airplane is administered by the Aircraft Registration Act (Chapter 503 of the Laws of Malta). Under this demonstration, an airplane might be enlisted in the National Aircraft Register by the following people:
- government of Malta
- a resident of Malta or a resident of a member state of the European Union or the European Economic Area (EEA), or Switzerland, who has a home or business in Malta; or
- an undertaking shaped and existing in accordance with the laws of Malta, of an EU or EEA member state, which has its registered office, central administration and principal place of business inside Malta, the European Union, the EEA or Switzerland, where at least 50% of the undertaking is owned and effectively controlled by the government of Malta, or by any EU member state, or by persons referred to in the second point above, through at least one intermediate undertakings.
Moreover, a natural person who is a citizen of, or an undertaking established in, an approved jurisdiction, may register an aircraft in construction or which isn’t utilized to give air services, subject to the satisfaction of a number of criteria stipulated in the Aircraft Registration Act.
Furthermore, qualifying registrants may register an aircraft in Malta in any one of the following capacities:
- as a proprietor operating an aircraft;
- as a proprietor of an aircraft under construction or temporarily not being operated or managed;
- as an administrator of an aircraft under a temporary title; or
- as a purchaser of an aircraft under a conditional sale or title reservation agreement approved to operate the aircraft.
Besides aircraft registration, Malta also has legal professionals, insurance and funding, and other ancillary help administrations.
Damalion experts help entrepreneurs and family business groups to register their private or corporate jet in Malta. We also help airline companies to get their Air Operator Certificate. Contact your Damalion Aircraft registration expert now.
