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Malta: A Premier Jurisdiction for Aircraft Registration & Aviation Business

Strategically located at the crossroads of Europe, North Africa, and the Middle East, Malta has established itself as a leading aviation hub, attracting aircraft owners, operators, and leasing companies from around the world. With its EU-compliant regulatory framework, competitive tax incentives, and high service standards, Malta’s Aircraft Registration Act offers one of the most attractive jurisdictions for aircraft registration under the 9H Maltese flag.

Backed by a pro-business government and a highly skilled workforce, Malta provides a stable, transparent, and efficient aviation ecosystem—making it an ideal choice for private and corporate jet owners, leasing companies, and commercial airlines. Aircraft registered in Malta benefit from flexible ownership structures, competitive corporate tax regimes, and an extensive network of aviation service providers, ensuring operational efficiency and cost-effectiveness.

Beyond its business advantages, Malta offers an exceptional lifestyle, boasting year-round sunshine, a rich cultural heritage, and world-class marinas and airports that cater to high-net-worth individuals and corporate executives. Whether you're looking to establish an aviation business, leverage tax-efficient structures, or enjoy seamless access to European airspace, Malta stands out as a premier jurisdiction for aircraft registration.

At UNICO Yachting, we extend our expertise beyond the seas—providing tailored solutions for aviation enthusiasts, investors, and operators looking to benefit from Malta’s thriving aviation sector. Our team ensures a seamless and efficient registration process, guiding you through every aspect of Malta’s aircraft ownership advantages.

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Main Benefits for Registering an Aircraft under the Malta Flag

Registering an aircraft under the Maltese flag offers significant advantages, particularly for EU compliance, tax incentives, flexible ownership structures, and access to top-tier aviation services. Malta’s robust legal framework, coupled with its strategic location and favourable financial environment, makes it a premier jurisdiction for aircraft registration in Europe, for both private and commercial aviation. The below are the main attractions for registering an aircraft in Malta:

1

European Union (EU) Member State

EU Regulatory Framework: Malta is part of the EU, which means aircraft registered under its flag are subject to EU aviation safety regulations, including compliance with the European Aviation Safety Agency (EASA) standards, ensuring high safety and operational standards.
Freedom of Movement: Aircraft registered in Malta enjoy freedom of movement across the EU, allowing operators easy access to EU countries without the need for additional permits or barriers.
Malta’s location in the Mediterranean makes it a convenient base for aircraft operations between Europe, North Africa, and the Middle East. It serves as a strategic hub for operators who require flexible access to multiple regions.
Malta is an EASA-certified state and has an FAA Category 1 rating, adopting the highest standards of safety and security.
The Malta International Airport (MIA) is open 24/7 and is an award-winning airport that has topped charts in Europe on multiple occasions.

2

Favourable Tax Regime

Income Tax: Income derived from the ownership, leasing or operation of aircraft or aircraft engines is exempt from tax in Malta as it is deemed to arise outside Malta for Maltese income tax purposes, irrespective of the country of registration of the aircraft/engines and whether the aircraft calls at or operates from Malta.
Tax-efficient Structures: Companies engaged in aviation have the benefit of a full imputation tax system granting the option to shareholders to claim, upon distribution of a dividend, a refund of 6/7ths of the income tax paid by the company.
VAT Exemption: Companies within the aviation industry, i.e. companies that operate an airline, are subject to special VAT treatment. The EU VAT Directive and local VAT Legislation provide for an exemption with credit (i.e. zero rate) for Qualifying Aircraft (QA). The EU VAT Directive holds that a QA is an “…aircraft used by airlines operating for reward chiefly on international routes”. On the other hand, Maltese VAT law states that a QA constitutes an “…aircraft destined to be used by airline operators for reward chiefly for international transport of passengers or goods”. Hence such aircraft qualify for the zero rate (VAT exemption with right of recovery of any VAT paid). The QA VAT exemption covers the:

supply (sale/transfer) of QA;
supply of equipment used/incorporated in QA to constructors, owners or operators;
modification, maintenance, chartering and hiring of QA and equipment used/incorporated in QA;

goods for the fuelling and provisioning of QA;
services for the direct needs of QA and its cargo, such as towage, pilotage, rescue services, valuation, use of airports (including landing fees), services provided to aircraft operators by their agents acting as such, services necessary for the landing, take off or stay in airports, assistance provided to passengers or crew.

This means that no VAT is charged on the sale of such services, but the company in question may claim back any input VAT on expenses incurred on the provision of that supply.

No Import Duties on Aircraft: Aircraft imported into Malta for commercial use within the EU are exempt from customs duties and VAT. Intra-EU acquisition supplies and importation of aircraft are subject to no VAT (with right of recovery of any input tax) if the QA VAT exemption applies. If such exemption does not apply, VAT is applicable at the standard rate (18% in Malta). Parts and equipment sold with/accessory to aircraft are part of the same supply and follow the same VAT treatment. Supplies by sub-contractors to QA manufacturers may be covered by the QA VAT exemption (it is important for supplier to retain evidence supporting exemption).
Double Taxation: Malta has a wide network of double taxation treaties with over 70 countries. This helps to prevent the issue of double taxation for aviation companies and owners, providing additional fiscal advantages.

3

The Aircraft Registration Act (2010) (Chapter 503 of the Laws of Malta)

Here are some additional qualities that are entirely unique to registration in Malta:

Malta allows the registration of both private jets and commercial aircraft;
The private aircraft registration regulations are relatively flexible;
Superior levels of legal transparency;
Malta does not apply any withholding tax on profits available for distribution/dividends; and
Excellent levels of safety and security.

4

The Cape Town Convention

Malta’s ratification of the Cape Town Convention is intended to facilitate the process of acquiring and financing an aircraft.
The Convention created the concept of ‘international interests’ which relate to rights competent to owners, lessors, lessees and financiers of aircraft which are recognised on an international level. It also provides creditors with a number of remedies for the enforcement of their rights or interests over aircrafts.
The Convention also established an electronic International Registry which is fully accessible online.

5

Mortgaging and Financing of Aircraft

Malta has a strong legal framework that supports aircraft financing and mortgaging. The registration of aircraft mortgages is straightforward and allows for secured interests to be properly recognised, which is crucial for financiers.
Priority of Claims: Under Maltese law, there is clarity and protection regarding the priority of claims, which makes it more attractive for financial institutions to provide financing for aircraft.

5

Neutral Nationality Requirements

Malta allows non-EU entities to register an aircraft under its flag, provided that they appoint a resident agent in Malta. Furthermore, whether private or commercial, there are no restrictions on the nationality of shareholders and directors of established Maltese aviation companies. This makes it particularly attractive for international aircraft owners and operators who want to benefit from EU regulatory standards without requiring EU nationality.

6

Flexible Registration and Deregistration Process

Fast Registration Process: Malta offers a streamlined and efficient process for the registration of aircraft, with a dedicated team at the Civil Aviation Directorate (CAD) to assist with the process. The CAD is highly experienced in regulating the aviation sector and their involvement ensures compliance with international safety and operational standards. Upon successful registration, aircrafts are issued with a Certificate of Registration with the CAD and are included in the National Aircraft Register of Malta.
Easy Deregistration: Should the need arise to change jurisdiction, deregistering an aircraft from Malta is also relatively straightforward, making it less cumbersome for owners looking to transfer or sell aircraft.

Disclaimer: The information provided on this website is for general informational purposes only and does not constitute legal or professional advice. We recommend seeking guidance from a qualified legal or professional advisor, with whom we can put you in touch to assist and provide specific advice related to your situation.

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