The registration of aircraft is regulated by The Aircraft Registration Act¸ which came into force on the 1st October 2010 and implements the provisions of the Cape Town Convention on International Interests in Mobile Equipment. Every type of aircraft is eligible for registration in Malta.

Moreover¸ foreign undertakings not engaged in air service are also offered the possibility of appointing a registered agent in Malta for the purposes of eligibility for registration.

Malta supports many sectors in this industry¸ such as maintenance¸ repair and overhaul (MRO) operations¸ R&D and of course the production of aircraft components¸ thanks to its high qualified people. In 2013¸ Maltese aviation has been made a key sector in the Government’s strategy.

The island wants to promote itself as a “one-off destination” in this very industry. Legilation will keep on adapting for that purpose.

As Times Of Malta reported: “In April 2013¸ the Minister for Tourism with responsibility for aviation set up an aviation advisory committee. This committee of experts in the aviation field immediately set out to achieve two primary objectives¸ namely the formulation of a civil aviation policy and the setting up of a Civil Aviation Authority”.

The civil aviation policy for Malta 2014 – 2020 was launched on December 7. It is built to enable the aviation sector to enhance each of its components (aircraft registration¸ number of passengers¸ maintenance¸ MRO¸ cargo services and R&D).

The civil aviation policy for Malta 2014-2020 can be finding here.
NB: The actual policy tends to liberalize the market¸ thus regulation may decrease¸ or enhance the market.

The Aircraft Registration Act regulates:

• the registration of aircraft and aircraft mortgages;
• the aircraft register;
• the recordation and enforcement of aircraft mortgages and other interests in aircraft;
• the special privileges on aircraft;
• the ranking of secured creditors;
• the ranking of secured creditors;
• the implementation of the Cape Town Convention on International Interestes in Mobile Equipment and its Aircraft Protocol and its interface with domestic law.

Advantages under the new law and other related legislation: 

• Broader registration possibilities;
• More visibility of rights and interests in aircraft;
• Encourages the development of finance and operating leases of aircraft and provides clear rules on the tax treatment of the finance charge¸ available tax deductions to finance lessors and capital allowances for lessees;
• No withholding tax on lease payments where the lessor is not a tax resident