Expertise in Aviation

The Maltese Aircraft Registration Act provides for the registration of aircraft which are destined for commercial activity, and also those aircraft which are destined to be used for private purposes.

The process to register an aircraft in Malta is very efficient one and is all done electronically and in real time.

Who is Eligible to Register an Aircraft?

Qualifying registrants may register aircraft in Malta in any one of the following capacities:

• An owner operating an aircraft.
• An owner of an aircraft under construction or temporarily not being operated or managed.
• An operator of an aircraft under a temporary title.
• A buyer of an aircraft under a conditional sale or title reservation agreement authorised to operate the aircraft.
• A trustee for the benefit of beneficiaries.

When registering an aircraft, the registrant may register several securities in favor of any person (legal or natural) with an interest, such as:

• A mortgage.
• A priority notice.
• A De-registration power of attorney.
• An irrevocable de-registration and export request authorization.
• Registration of interests in the international registry.

Vaia legal currently supports a wide range of operators that have established themselves in Malta. The process of obtaining an Air Operator’s Certificate and an AOL in Malta is a process that Vaia legal is highly specialized in. We pride ourselves with assisting our clients with the whole process from start to finish, ensuring a successful and commercially viable result for our clients. In addition to adhering to specific time-frames, Vaia Legal further assist their AOC applicant clients with establishing their operations in Malta.

Authority Guidelines stipulate a general 6-month time period for obtaining AOC, however this is assessed on a case-by-case basis as necessary.

Customs importation of an aircraft into the European Union, through Malta is available for both privately operated aircrafts as well as commercial operated aircrafts, as detailed below.

This procedure is characterized as one of full importation. In this case It is necessary for the aircraft to be physically present in Malta in order to undergo the required VAT and customs procedures. It is possible for the majority of the paperwork to be processed prior to the aircrafts arrival in Malta and thus minimal turnaround time of a few hours is ensured.

With regard to the VAT regulations currently in force, aircrafts which are put on an AOC are considered to be “aircraft destined to be used by airline operators for reward chiefly for international transport of passengers and/or goods” and therefore favorable conditions apply when importing such an aircraft. These are as follows:

• VAT is not chargeable when importing, acquiring and/or leasing and aircraft destined to be put on an AOC.
• VAT is not chargeable on services consisting of the modification and maintenance of the aircraft.
• VAT is not chargeable on the supplies of good for the fueling or provisioning of the aircraft.

Once this full importation procedure has been finalized, the aircraft will be deemed to be in free circulation with the European Union.

The procedure for the full importation of a privately operated aircraft into the EU via Malta is subject to the payment of VAT set at a rate of 18% on the value of the aircraft upon importation. An importation of an Aircraft destined for private use must complete the VAT payment procedure before having the aircraft imported. These two procedures are done back to back, and once the aircraft is in Malta, down time is minimal.

For further queries please contact the team at Vaia Legal, and we will provide you with the right information for your operations.

The team at Vaia legal is highly experienced in the representation of all types of borrowers, lenders, sellers and investors, in the financing, leasing and trading of aircrafts. We have advised on, as well as structured numerous aircraft transactions, and thus garnered such knowledge and expertise.

Our services include assistance with aviation finance, advising clients in the purchase and sale of aircraft, engines and parts.

The team at via legal together with their tax advisors, are positioned to assist with a tailor-made solution for those aircrafts wishing to pay a VAT on the value of the aircraft.