The aviation industry in Malta has fast established especially after the introduction of the Aircraft Registration Act in 2010 as Malta’s aim was to become one of the largest aircraft registries in the world.
The Malta’s Aircraft Registration Act offers some good advantages, such as that it:
- recognises fractional ownership of aircraft and encourages the development of finance and operating leases of aircraft.
- provides clear rules on the tax treatment of the finance charge, available tax deduction to finance lessors and capital allowances for lessees.
- 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.
At Sciberras Advocates, our lawyers can assist you with the registration and insurance of the aircraft in Malta. We also liaise with our tax consultants so as to ensure that you are kept abreast of any tax incentives that you can benefit from and which are offered to the aviation industry.