Following the success of what is loosely referred to as the
Yacht Lease Structure, the VAT Department in Malta have issued
guidelines on the VAT treatment of aircraft leasing for private
use. The devised structure, through which VAT can be paid, offers a
safe business solution to those individuals wanting to acquire an
aircraft under a Maltese company with a VAT paid status as well as
the added benefit, if so desired, of registering such aircraft in
Malta. The system allows for an aircraft owned by a Maltese company
to be leased to third parties with an option to purchase the
aircraft at the end of the lease.
What is the leasing agreement of an aircraft?
The leasing agreement of an aircraft is an agreement whereby the
owner of the aircraft (the lessor) contracts the use of the
aircraft to a person who leases the aircraft (the lessee) for a
consideration. Furthermore, after the end of the lease period, the
lessee may opt to purchase the aircraft at a percentage of
