Aviation in Malta

As an EU member state and a leading financial services jurisdiction, Malta has established a clear vision supporting the aviation industry. Following the worldwide success supporting the maritime sector, Malta is now working towards building the same strength and growth of its aircraft register.

Main advantages in Malta Aircraft Registration:

  • An attractive corporate tax system.
  • Recognition of fractional ownership of aircraft so that the title may be divided between co-owners in specified fractions or percentages which may each be financed by a different creditor taking security over the particular fractional interest for which finance has been provided.
  • Broad registration possibilities for aircraft not used in commercial air transport.
  • Robust legislative framework and extensive network of double taxation treaties.
  • Transparency of rights and interests in aircraft.
  • Encouragement of the development of finance and operating leases of aircraft and provides clear rules on the tax treatment of the finance charge, available tax deductions to finance lessors and capital allowances for lessees.
  • No withholding tax on lease payments where the lessor is not a tax resident of Malta.
  • The private use of an aircraft by an individual who is not resident in Malta and is an employee/officer of an employer/company/partnership whose business activities include the ownership/leasing/operation of aircraft used for international transport does not constitute a taxable fringe benefit.
  • Competitive minimum depreciation periods for aircraft.
  • Implements the provisions of the Cape Town Convention on International Interests in Mobile Equipment and its Aircraft Protocol thereby granting secured lenders a higher degree of protection and more effective remedies whilst allowing lower borrowing costs.
  • Possibility of registering aircraft under construction once uniquely identifiable with airworthiness surveys suspended until the completion of the aircraft.
  • Possibility of recording various details pertaining to the aircraft, its ownership or any other relevant interest.
  • Local availability of a wide range of airline services (aircraft and engine maintenance, repair and overhaul, aircraft management, aircraft maintenance training and other ancillary support services).
  • High standards of safety and security.