Aviation Financing & Leasing – Bermuda

1. AIRCRAFT AND ENGINE PURCHASE AND SALE

1.1 Sales Agreements

1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement

No taxes or duties are payable in Bermuda as a consequence of the execution of an aircraft or engine sale agreement, unless the agreement is physically executed in Bermuda and one of the parties is a local Bermuda company, in which case stamp duty would be payable. If the aircraft is physically located in Bermuda when the sale agreement is executed and the purchaser is a Bermuda entity, customs duties may be payable as it could be seen as importation of the aircraft.

1.1.2 Enforceability Against Domestic Parties

It is not necessary for a sale agreement to be translated, certified, notarised or legalised in order to be enforceable against a Bermuda company in Bermuda.