{"id":121656,"date":"2025-12-10T13:36:42","date_gmt":"2025-12-10T13:36:42","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=121656"},"modified":"2025-12-10T13:36:42","modified_gmt":"2025-12-10T13:36:42","slug":"austria-aviation-finance-leasing","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/austria-aviation-finance-leasing\/","title":{"rendered":"Austria: Aviation Finance &amp; Leasing"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-121656","comparative_guide","type-comparative_guide","status-publish","hentry","guides-aviation-finance-leasing","jurisdictions-austria"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">GHP Rechtsanwalte<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/12\/GHP-logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">GHP Rechtsanwalte<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/12\/GHP-logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Aviation Finance &amp; Leasing laws and regulations applicable in Austria<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What international aviation conventions has your jurisdiction signed and\/or ratified?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austria has, amongst others, ratified the Chicago Convention of 1944 on International Civil Aviation (the Chicago Convention) (ratified 26 September 1948), the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) (ratified 2 May 1961), the Warsaw Convention of 1929 for the Unification of Certain Rules Relating to International Carriage by Air (ratified 27 December 1961) and the Montreal Convention of 1999 for the Unification of Certain Rules for International Carriage by Air (ratified 28 June 2004), the Tokyo Convention on Offences and Certain Other Acts Committed On Board Aircraft (ratified 8 May 1974), the Hague Convention of 1970 for the Suppression of Unlawful Seizure of Aircraft (ratified 13 March 1974).<\/p>\n<p>Austria is in particular not a party to the Rome Conventions of 1933 on damage caused by foreign aircraft to third parties on the surface and for the Unification of Certain Rules Relating to the Precautionary Arrest of Aircraft, the Geneva Convention of 1948 on the International Recognition of Rights in Aircraft or the Convention on International Interests in Mobile Equipment and The Protocol to the Convention on Matters Specific to Aircraft Equipment (the Cape Town Convention) of 2001.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If your jurisdiction has signed and ratified the Cape Town Convention: a. Which qualifying declarations (opt-in and opt-out) has your jurisdiction made under the Cape Town Convention? b. Does the Cape Town Convention take priority over conflicting national law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>N\/A<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Will a court uphold the choice of a foreign governing law in respect of the following contracts and if so, please also state any conditions or formality requirements to this recognition a. Lease and b. Security document (for example, mortgage)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><h4>a. Lease<\/h4>\n<p>Courts will principally uphold the choice of law in lease agreements. However, if the agreement provides for Austrian jurisdiction, proceedings might get complicated and costly as Austrian courts would need to apply foreign law, which would require additional foreign legal experts to be appointed and possibly assistance through the Austrian Ministry of Justice for legal assistance of the relevant foreign ministry of justice to be sought. Austrian courts, in such case, might also disregard the chosen governing law and apply Austrian law despite the choice made by the parties. We therefore recommend to align the place of jurisdiction and the applicable law.<\/p>\n<p>Parties might also consider an arbitration clause or agreement pursuant to e.g. the Vienna International Arbitral Centre (\u201cVIAC\u201d) Rules of Arbitration (the \u201cVienna Rules\u201d) which is enforceable in all countries which are signatories to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (the \u201cNew York Convention&#8221;).<\/p>\n<h4>b. Security document (for example, mortgage)<\/h4>\n<p>The same principles apply as for lease agreements, but please also see the answer to 4. Below.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please confirm whether it is (i) customary and (ii) necessary to also take a local law mortgage and if so, why?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Aircraft are movable assets and the is no registry in which mortgages on aircraft can be registered. Whether Austrian law is applicable for the determination and qualification of a security interest in an Austrian registered aircraft will depend on the international private law applicable of the chosen governing law. Under Austrian international private law, proprietary legal questions (such as the validity of a security interest granting a right in rem) will be determined according to the law in which jurisdiction the aircraft is registered. We therefore generally advise that a mortgage \/ pledge of the aircraft is subject to Austrian law if the aircraft is registered in Austria.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign judgments recognized and enforceable by courts of your jurisdiction and if so, please also state any conditions or formality requirements to this recognition (for example, do you require a local court order confirming such recognition)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Before judgments of foreign courts can be enforced in Austria, they need to be recognized in relevant court proceedings. For judgments of courts of the European Union, Regulation (EU) No. 1215\/2012 of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (recast) (Brussels Ia Regulation) is applicable. The Brussels Ia Regulation provides for a simplified procedure and aims at facilitating the circulation of foreign judgments within EU member states. Other foreign judgments need follow the national provisions on the recognition of foreign judgments set out in the Austrian Enforcement Act, unless bilateral treaties exist that provide for mutual recognition and enforcement of judgments, in which case these rules prevail.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your aircraft registry an owner-register (registering ownership interests) or an operator-register (registering interests as operator)? Please also state any conditions, procedural steps or formality requirements for such registration and explain how this is evidenced (for example, the issuance of a Certificate of Registration)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Austrian aircraft registry is an operator- based registry. In order to register an aircraft in the Austrian aircraft registry, the operator in the sense of Art 13 Austrian Aviation Act needs to file and sign the application for registration. The standard form is available on the website of the Austrian aircraft registry which is maintained by Austro Control GmbH. The owner needs to be notified to the registry and a special form for proof of ownership as well as a form by which the operatorship is transferred by the owner to the operator (if the operator is different to the owner) needs to be signed and filed together with the registration form by the operator. Upon registration, the authority will issue a Certificate of Registration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a security document register in your jurisdiction where a mortgagee\u2019s interests will be recorded? If so, please also state any conditions, procedural steps or formality requirements for such registration and explain how this is evidenced (for example, the issuance of a certificate or official stamp on the security document)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no security document register in Austria.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the effect of registration of: a. Ownership interest (for example, proof of title to third parties of ownership) b. Lease (for example, perfects the status of the Lessor under the Lease) c. Security document (for example, secures priority over later registered security). If there are any interests that could rank prior to the security document please state these<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><h4>a. Ownership interest (for example, proof of title to third parties of ownership)<\/h4>\n<p>The registration in the Austrian registry is an administrative requirement and does not impact the legal ownership of an aircraft, in particular since the owner is not formally registered in the register. Transfers of ownership that are effected whilst the same operator is registered (and remains in charge of the operation of the aircraft) can therefore occur without notifying the Austrian Registrar. However, it is advisable to keep the Registrar informed of ownership changes, as changes of the operator or the deregistration of the aircraft will require consent of the owner, which might pose some problems if the chain of ownership changes cannot be presented to the Registrar.<\/p>\n<h4>b. Lease (for example, perfects the status of the Lessor under the Lease)<\/h4>\n<p>There is no possibility to register the function of Lessor or Lessee in the Austrian aviation registry.<\/p>\n<h4>c. Security document (for example, secures priority over later registered security). If there are any interests that could rank prior to the security document please state these<\/h4>\n<p>There is no register in Austria for security documents relating to aircraft.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of lease are recognized in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Austria recognizes financing leases as well as operating leases. Under Austrian law, a lease agreement does not require a special form. Agreements that shall be used before Austrian courts need to be officially translated into German by a court certified translator; however, the agreement is valid in any language concluded between the parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What formalities are required to perfect Lessor\u2019s rights under a lease in your jurisdiction (for example, translation, notarization, apostille, legalization etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Austrian law, a lease agreement is an obligatory agreement, meaning that no separate act of perfection is needed. The Lessor needs to make sure that it has acquired ownership prior to the conclusion of the lease agreement, in which case the Lessor will remain the legal owner of the aircraft for the duration of the lease.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are the ownership rights relating to engines recognized as separate and distinct from the ownership of the rest of the aircraft in your jurisdiction? Please highlight any separate registration, filing or additional formalities that are required to be completed to perfect Lessor\u2019s interest in the engines<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Engines are considered separate legal objects and are separate and distinct from the ownership of the airframe. Rights in rem, such as ownership or pledges on engines, therefore need to be mentioned and concluded separately.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What form does security over aircraft generally take in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Since Austria does not have a registry in which security interests over aircraft can be registered and there is no mortgage in the sense that a security interest can be created by way of registration, financing structures of aircraft in Austria are typically secured by financing by means of a lease structure. The Lender remains the owner of the aircraft throughout the financing period and leases it as Lessor to the Lessee, who uses the aircraft (but does not gain any rights in rem).<\/p>\n<p>Financing of an aircraft by means of a loan secured by a mortgage or pledge is not practicable in Austria. Aircraft are considered movable assets, so the so called \u2018dead pledge\u2019 principle applies in creating and perfecting a security interest over aircraft. This means, that in order to perfect a pledge on an aircraft, an act of publicity is required in the form of physical delivery of the aircraft from the owner to the pledgee. The owner cannot remain in possession of the aircraft if a pledge shall be effectively created, which is not very practicable as the owner will not be able to operate the aircraft himself. Usually, if a pledge on an aircraft is intended, a proxy is used, meaning the aircraft is placed with a third party who shall act as operator of the aircraft. The perfection of the pledge can then be effected by way of an instruction to the operator (by the owner as pledgor) to hold and possess the aircraft for and on behalf of the pledgee for the duration of the pledge agreement). Additionally, it is recommended to mark the aircraft as being subject to an Austrian law pledge by affixing plates to the airframe (and also to each engine, if engines are also pledged) to create external visibility of the pledge.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any particular terms or characteristics that such a security document must take (for instance, a cap on the secured liabilities)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No, it doesn\u2019t.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any perfection requirements for such security document? If so, please state any conditions, procedural steps, formality requirements or documentation (for example, corporates, list of directors etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No, please see the answers to 12.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Summarize any captive insurance regime in your jurisdiction as applicable to aviation.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No such captive insurance regime is applicable to aviation in Austria<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are cut-through clauses under the insurance and reinsurance documentation legally effective in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As Austrian law does not generally provide for the prohibition of cut-through clauses, such clauses on behalf of a policyholder are, in our view, legally effective.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there minimum requirements for the amount of third-party liability cover that must be in place in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The minimum requirement for the amount of third-party liability cover under Austrian law depends on the maximum take-off mass of the aircraft. The limits of liability that need to be covered by liability insurance range from 750,000 special drawing rights (as defined by the International Monetary Fund) for a maximum take-off mass of less than 500kg to 700 million special drawing rights for a maximum take-off mass of more than 500 tons.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a mortgagee (or equivalent security interest holder) or lessor following an event of default under a mortgage (or equivalent security document) or lease, respectively, take possession of the aircraft without judicial intervention in your jurisdiction? Please also state any conditions, procedural steps, formality requirements or documentation (for example, original, legalized, translated Lease\/Mortgage, corporates etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Lease agreements (or related tripartite agreements) under Austrian law usually foresee irrevocable powers of attorney by lessee and operator granting rights to the owner or lessor to repossess and register or deregister the aircraft. A lessee will, with regard to the competent authorities (airports, Austro Control), typically not have much leverage to obstruct repossession by the owner or lessor. A third- party operator, however, may invoke rights of retention until its fees and costs with respect to the aircraft are paid in full, if such rights have not been waived contractually in advance.<\/p>\n<p>Although a court order does not, in principle, need to be obtained by the lessor, if a retention of title in the aircraft validly exists and the underlying obligation becomes due and payable subject to proper termination, court proceedings might have to be opened (as a last resort) to regain possession from an obstructive operator.<\/p>\n<p>Enforcement measures must be in line with respective regulations that principally provide for creditors\u2019 entitlement to an out-of-court realization of the pledge (ie, repossession and sale of the aircraft) provided that the underlying claim has become due and payable, and that the debtor or pledgor has been warned of the realization of the pledge. The creditor must wait with the realization for one month after having warned the pledgor to realize the pledge; this stay period is shortened by law to one week if both parties are entrepreneurs. We recommend additional clarification within the security agreement (pledge agreement) that an out-of-court realization of the pledge will take place in the event of a termination owing to the lessee\u2019s payment default. Alternatively, the creditor may enforce the pledge through the court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How can a mortgagee (or equivalent security interest holder), lessor under a lease or designee\/beneficiary of an IDERA deregister the aircraft? Please also state any conditions, procedural steps, formality requirements or documentation (for example, original, legalized, translated Lease\/Mortgage\/IDERA etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If an IDERA is in place, the beneficiary of the IDERA can sign the deregistration application to be made to the Austrian aircraft registry. The form is available on the website of the Austrian aircraft registry and must be accompanied by the written consent of the owner (copy is sufficient) and the original of (i) the Certificate of Registration, (ii) the Airworthiness Certificate, (iii) the Certificate of Use and well as the (iv) Noise Certificate. It will therefore be necessary that the beneficiary of the IDERA is in possession of all these original documents. Translations are generally not required unless the documents are neither in German or in English.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the government or the lessee lawfully prevent the repossession or deregistration and if so, in what circumstances<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No, unless the documentation is not complete or there is contradictory information\/documentation as to who is entitled to deregister the aircraft. The authorities are principally not involved in the repossession of the aircraft, unless an enforceable judicial title for the repossession exists and enforcement proceedings are initiated (in which case the enforcement authorities will enforce the title).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If judicial intervention is required, please describe the process? Please also state any procedural steps, length of time to complete and advise as to documentation required<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Please see our answer to 18.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is legal title transferred under the laws of your jurisdiction? Please also state any conditions, procedural steps, formality requirements or documentation (for example, corporates etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Austrian law, title of ownership in an aircraft requires two steps: a contractual agreement on a valid title (title agreement (Verpflichtungsgesch\u00e4ft)) and the physical handover of the aircraft to the intended title holder (mode agreement (Verf\u00fcgungsgesch\u00e4ft)). A bill of sale (alone) is not sufficient to validly convey ownership rights to an aircraft but may serve as written evidence for the title agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the sale of an aircraft following enforcement (for example, the requirement to obtain a court order or conduct a public auction or other action in order to sell the aircraft upon enforcement)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Principally not. The limits and proceedings for sale of an aircraft after enforcement are usually set out in the contractual underlying agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would lease rentals be subject to tax (for example, withholding or income tax)? Please also state if there are any conditions for such tax to be imposed and any steps usually taken to mitigate this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Income from the leased asset or from the provision of financial services (eg, granting loans) may be subject to (corporate) income tax depending on whether the lessor or financier has its registered seat or permanent establishment in Austria. Withholding tax does not apply to lease payments (principal or interest) or loan repayments.<\/p>\n<p>Lease agreements may also be subject to stamp duty tax depending on the chosen structure, applicable law and involved jurisdictions.<\/p>\n<p>Usually, Austrian law facility agreements contain tax indemnity or gross-up provisions to mitigate potential tax risks. Such clauses are generally effective under Austrian law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would a sale of an aircraft in your jurisdiction incur sales tax? Please also provide details of amount or calculation and any steps usually taken to mitigate this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Subject to the applicable jurisdiction as to the delivery of the aircraft, as well as the type and use of the aircraft, value added tax (VAT) might be applicable. Aircraft used for international commercial transport may be eligible for VAT exemption. However, private or non-commercial use could trigger VAT liabilities. Mitigation structures include for example delivery (hand-over) of the aircraft in international airspace.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of aircraft in your jurisdiction and would such importation or exportation incur any liability as to customs or taxes? Please also state if any consents or approvals are required and the procedural steps taken to obtain these, and any procedural steps or formality requirements to mitigate any taxes<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Aircraft import or export generally follows EU customs and aviation regulations. Restrictions may apply for reasons such as compliance with safety, environmental standards, or sanctions. Military or dual-use aircraft may require specific authorizations. Aircraft are often exempt from customs duties when imported from outside the EU, provided they meet specific requirements (e.g., for commercial aviation purposes). For non-EU imports, an import declaration must be filed. In any case, professional legal advice is recommended for specific cases due to the complexity of regulations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any foreign exchange restrictions on transfers of funds<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Such restrictions relate in particular to general restrictions of the EU financial market on transfers of funds from abroad. Sanctions regimes of the EU legislator need to be respected.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How successful have foreign creditors and lessors been in enforcing their security and lessor rights over and successfully repossessing aircraft in a timely manner?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Austrian regime is generally very efficient and unless retention rights or insolvency proceedings delay the process.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What government led reforms affecting creditor and lessor rights are currently underway in the aviation sector in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are in Austria currently no significant reforms in the pipeline.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please describe any interesting legal development in your jurisdiction (for instance, decided court cases or arbitral awards) which affect creditor and lessor rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There have recently not been any noteworthy developments in Austria in this particular field of law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please discuss any relevant governmental regulations implemented in your country to help alleviate the financial and other difficulties faced by airlines in your jurisdiction caused by CoVid 19 and whether that will impact rights of lessors (who lease aircraft to the airlines) and lenders (who finance such aircraft which are mortgaged in favour of the lenders)? Are such governmental regulations expected to be in place until the difficulties faced by airlines caused by the CoVid 19 subside or are they more long term?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no special CoVid 19 regulations in place anymore in Austria.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3406<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/121656","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=121656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}