By updating the scope of the regulatory framework, coupled with innovative concepts based on the Cape Town Convention, Malta should now be considered your preferrred jusridiction of choice for aircraft registration in Europe.
The aviation sector in Malta not only ofers aircraft registraion services but also a variety of maintenance, repair and overhaul services for aircraft, engines and components. The island already boasts of global leading companies operating from its shores, such as Lufthansa Technic and SR Technic, a swiss-based company that provides mro service to the entire fleet of easyJet’s aircraft – 157 airfact in total.
The local government’s efforts in promoting this sector consist of both fiscal and non-fiscal incentives as well as on going sector-specific education to the workforce. The new laws and related legislations provide a number of advantages, being :
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More visibility of rights and interests in aircraft.
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Encourages the development of finance and operating leases of aircraft and provides clear rules on the tax treatment of the finance charges, available tax deductions to finance lessors and capital allowances for lessees.
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Wider registration possibilities.
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No witholding tax on lease payments where the lessor is not a tax resident in Malta.
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Competitive minimum depreciation periods for aircraft.
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The private use of an aircraft by a non resident individual in Malta, who is an employee, officer or pratner of a company involved in the international transport of passengers and/or goods, does not constitute a fringe benefit.
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The implementation of the provisions of the Cape Town Convention grants secured lenders more protection and ensures lower borrowing costs.
