Aviation Financing & Leasing: British Virgin Islands

1. General and Contractual

1.1 What are the typical structures available for financing the purchase of an aircraft?

The British Virgin Islands (BVI) offers a flexible regime for aircraft financing structures. Typically these will involve the incorporation of a special purpose vehicle (SPV) which will hold the title to the aircraft.

1.2 What are the key advantages/disadvantages and main issues arising in relation to these financing structures?

The BVI's flexible corporate regime provides the ability to establish tax neutral, flexible and low-cost vehicles to meet clients' specific structuring requirements, which can be tailored to meet the specific requirements of the proposed transaction while being internationally recognised.