Case Study: Structuring Aircraft Ownership with EU Importation

Client Requirements

An owner who is already in the process of purchasing a pre-owned Bombardier Challenger 350 jet from a seller established in Asia, is looking to use the aircraft in conjunction with their existing business, which is based in Germany.

They intend to use the aircraft primarily for moving company executives around Europe and to visit new and existing clients. When they are not using their aircraft, they are expecting to charter it out to third parties in order to recuperate some of their operational outgoings.

Solution

As with any luxury asset ownership structuring, the first step, in this case, is obtaining professional tax and VAT advice in order to ensure any structure is as efficient as possible whilst also ensuring no unnecessary tax liabilities will be triggered.

Following professional VAT and tax advice, and due to the advantages of selecting Malta as the jurisdiction of choice, the owner incorporates a Maltese Limited Liability Company to own the aircraft, and registers it for VAT and tax in Malta.

Following the successful purchase of the aircraft, the aircraft is de-registered from its existing Asian register, and subsequently registered on the Maltese 9H register.

In order to allow the aircraft to be operated commercially and to allow charters to third parties, a suitable Malta-based operator with an AOC (air operator’s certificate) is found.

Following the VAT and tax advice initially received, it was established that the aircraft would need to be fully imported and put into free circulation in the EU for VAT and Customs purposes. The aircraft is therefore fully imported, which affords it to be able to be operated within the EU both for private and commercial flights.

A suitable operator for the aircraft is subsequently sourced. The owner opts to place the operations with a large Europe-based operator with aircraft already based in Germany.

How can we help?

At Sentient International, we understand that owning an aircraft or helicopter is a significant investment that requires careful consideration and planning. Our aim is to help you navigate the complex landscape of aircraft ownership by providing tailored solutions that align with your unique requirements and goals. With our expertise and guidance, you can maximise the benefits of aircraft ownership while minimising the administrative burdens and financial implications.

We provide bespoke corporate structures for the effective ownership and operation of a range of aircraft, including business jets and helicopters. Working with you and your chosen advisors, we ensure that your structure protects your asset effectively and is compliant with regulatory requirements whilst receiving the necessary administrative and operational support.

Aircraft registration is a crucial step in the life cycle of an aircraft. We can handle everything from initial registration to ongoing compliance and renewals, so that you can focus on your aviation operations with peace of mind.

Discover the possibilities that come with well-structured aircraft ownership. Let us handle the complexities while you enjoy the freedom and advantages of aircraft ownership to the fullest extent.

Please note that this case study is for guidance purposes and does not constitute, nor should it be construed as, tax, VAT or legal advice. We strongly recommend that the appropriate professional advice always be sought before entering into transactions of this nature.