Category: Air Marine

As the maritime industry continues to embrace digital transformation, Malta took a significant step forward by implementing a fully electronic certification system for vessels under its flag. In line with international standards and best practices, the Malta Ship Registry began issuing electronic statutory certificates on 1 June 2025, marking a new era of efficiency, security, and environmental responsibility in maritime documentation. This transition, set out in Merchant Shipping Notice 193, is based on the International Maritime Organisation’s Circular FAL.5/Circ.39/Rev.2, which outlines global guidelines for the use and acceptance of electronic certificates.

Key Objectives of the Transition

Effective 1 June 2025, the Malta Ship Registry has started issuing electronic certificates for all ships flying the Maltese flag. This initiative is part of a broader effort to modernise maritime administration by transitioning from paper-based documentation to secure digital formats. It aligns with the International Maritime Organisation’s Circular FAL.5/Circ.39/Rev.2, which encourages flag states to reduce administrative burdens and streamline shipboard compliance through the use of electronic certification. By adopting this digital model, Malta is improving efficiency, reducing reliance on paper, and reinforcing its position as a forward-looking flag state.

Legal Status and Validity

From the effective date, electronic certificates issued by the Malta Ship Registry will be considered legally valid and equivalent to original paper certificates under the Merchant Shipping Act. These digital documents are fully acceptable for the lawful operation and navigation of Maltese-flagged vessels. This shift holds particular relevance for yacht owners, for whom registration, tax, and legal compliance are key operational concerns. At the same time, any hardcopy certificates issued prior to 1 June 2025, will remain in force until their stated expiration dates and must continue to be carried onboard. This dual recognition ensures a smooth and practical transition for operators while maintaining full compliance with international regulatory standards.

Features of Electronic Certificates

The new certificates will be delivered in PDF format to the designated email address of the applicant, for onward transmission to masters and ship managers. Each document will have advanced security and authenticity features consistent with international requirements. These features include tamper-proof formatting, a unique tracking number, and clear identification of the authorised officer who authenticated the document. Notably, the traditional handwritten signature of the Registrar will be replaced with a QR code, serving as the primary means of verification. All certificates will be protected against unauthorised modifications and designed to meet the format and content criteria of the applicable international conventions.

Format and Verification Process

The verification of the certificates’ authenticity is a core component of this digital initiative. Each PDF certificate will incorporate a QR code in accordance with ISO/IEC 20248, embedding a secure digital signature and compacted verification data. This allows the document to be scanned using standard devices and verified instantly, without the need for physical stamps or signatures. The use of QR codes ensures that the source and integrity of the certificate can be validated at any time, regardless of the vessel’s location.

Verification Methods

Ship operators and authorities will have access to two reliable methods for verifying electronic certificates. The first is online verification, where the QR code can be scanned using any internet-connected smartphone or device, instantly confirming the document’s authenticity via a secure digital platform. The second method supports an offline verification that allows certificate data to be accessed even when an internet connection is unavailable. These dual methods provide flexibility, accessibility, and security, ensuring that digital certificates remain functional in both port and at sea.

List of Electronically-issued Certificate

Transport Malta, the national Regulator, has published a list of certificates that are being issued electronically from 1 June 2025.  This includes registration documents, provisional and permanent certificates, insurance and liability certificates under international conventions, the Declaration of Maritime Labour Compliance, Minimum Safe Manning Certificates, and GMDSS Ship Station Licences, among others. Full details and instructions can be found on the official website of the Malta Ship Registry.

The implementation of electronic certificates by the Malta Ship Registry not only reduces administrative overhead for ship operators and authorities but also helps build a more resilient and attractive regulatory framework for yachting and maritime activity in the years ahead.

Additional Information

For further information about Malta Maritime matters please contact Jonathan Vassallo, at the Dixcart office in Malta: advice.malta@dixcart.com. Alternatively, please speak to your usual Dixcart contact.

In an increasingly complex regulatory and fiscal landscape, yacht owners and their advisers are looking for stable, well-regulated jurisdictions that offer clarity, flexibility, and efficiency. The Isle of Man has long been a respected centre for yacht ownership and management, and it continues to offer advantages for those involved in both private and commercial yachting.

In the Private Yachting space the Island facilitates access to Customs reliefs such as Temporary Admission for privately used yachts, provided specific criteria are met.

In this article we cover the following topics to provide a quick overview:

• Temporary Admission Relief (TAR) for Private Yachts
• How to Meet the Requirements of Temporary Admission Relief (TAR)
• What Next? Things to Consider When Planning Your Yacht Fiduciary Services
• What are Your Yacht Fiduciary Service Options? Jurisdictions & Providers

Temporary Admission Relief (TAR) for Private Yachts

Temporary Admission Relief (TAR) is a Customs procedure which allows certain goods (including means of transport – e.g., private Yachts) to be brought into the Customs Territory with total or partial relief from import duties and taxes, subject to conditions.

For example, the goods must be imported for ‘Specific Purpose’ and are intended for re-exportation within a specified period.

Whilst owners established outside of the Customs area are exempt from VAT under TAR, Customs Duty relief varies, dependent on the jurisdiction’s classification of the vessel and its Specific Purpose for being imported.

For quick reference we have provided a table of the headline details/requirements below:

EU TAR

The Vessel is registered outside of the Customs Union. (The flag state of the Yacht is non-EU)

The vessel is used by an individual established outside of the Customs Union. (The owning entity is established outside the EU)

The vessel must be operated by an individual established outside of the Customs Union. (Ultimate Beneficial Owner must be resident outside the EU)

Some further conditions to note: a. The goods must be imported with the intention of re-exporting them at a later date (Maximum 18 months); b. No alteration of the goods is intended (allowing for maintenance/upkeep), i.e. no value is to be added; c. The goods can be clearly identified (e.g., hull identification number etc.); d. The overall Customs requirements are met; and e. A guarantee is provided, if required (specific to the Member State).

How to Meet the Requirements of Temporary Admission Relief (TAR)

Thankfully there is a lot of scope for meeting the requirements for those wishing to set sail in the EU under TA:

1. Registration of the Vessel

For a TA procedure to apply with full VAT and Customs Duty relief, the Yacht must be registered in a jurisdiction outside of the EU (it will use the flag of a Non-Member State).

Following its departure from the EU, the Isle of Man now meets this criteria, alongside traditional favourites such as the Cayman Islands.

2. Establishment of the Individual

For our purposes, ‘individual’ refers to both Natural Persons and Corporate Entities. In this way we can have an individual established in a separate jurisdiction to the Ultimate Beneficial Owner (UBO) – often by way of a holding company, that will own the Yacht and which in turn will be subject to the local tax regime.

The jurisdiction of establishment in this case does not necessarily have to be the same as the chosen flag of the vessel.

3. Establishment of the Ultimate Beneficial Owner (UBO) 

For the purposes of TA, so long as the UBO is resident outside of the EU, they will qualify.

What Next? Things to Consider When Planning Your Yacht Fiduciary Services

When selecting a suitable ownership structure for the registration of a Private Yacht, which will benefit from TAR within EU waters, we would suggest checking the following broad criteria.

Choosing a Jurisdiction for the Holding Structure

• Strong economic international standards – a minimum ‘A rating’. (S&P / Moody’s)
  • Robust legal standards.
  • An OECD Whitelisted jurisdiction with a strong reputation for compliance and transparency.
  • Beneficial tax regime taxes.

Choosing a Yacht Fiduciary Service

To assist with the specialist advice, corporate structuring, and administration of the Yacht, we would recommend ensuring that your service provider ticks the following boxes:

• Geographic location – with relation to the local tax regime and time zone (for accessibility and ease of dealing).
  • A proven track record –how established the provider is in the sector, as well as familiarity with this category of service.
  • Access to experts – with many providers, their scale often prevents direct and regular dealings with senior qualified staff members; you will want access to experts whenever you have a query or action that is required, and not to always have these dealt with by juniors.
  • Your business is valued – in an ideal situation, your business will be a priority to the provider, not just another client on the books. Finding a provider that is adaptable and responsive is key to service excellence.

What are Your Yacht Fiduciary Service Options?

With so many well-established shipping registrars and a wide selection of beneficial jurisdictions for incorporating a holding structure, you would be forgiven for having flashbacks of 2020’s uncertainty. This is where we can help.

At Dixcart, your needs are our priority – we provide a bespoke and personal service for those looking to manage and administer their luxury assets; giving you access to experts as and when you require them.

Because we are based in the Isle of Man, we benefit from our Aa3 rated jurisdiction’s political, economic and environmental stability. The Island is a self-governed Crown Dependency, setting its own laws and rates of taxation.

Whilst we can access any number of shipping registers, our local registrar has an exceptional track record of service excellence; providing an approach that blends modern flexible services and competitive rates without compromising on quality.

The beneficial tax regime, business friendly government and OECD ‘Whitelist’ status ensure that the tax vehicles we offer can help you achieve your goals whilst remaining globally compliant.

An Isle of Man registered Company enjoys the following benefits:

• No capital gains taxes
• No stamp duty (including on share transfers)
• No inheritance tax or death duties

We have been assisting clients and their advisers for over 45 years with the effective structuring and administration of wealth, having experience of utilising multiple shipping registers to ensign vessels in line with their desired purpose. If you would like to discuss how we can assist you in achieving the effective and efficient administration of a vessel we would be delighted to hear from you. Please contact Paul Harvey at the Dixcart Office in the Isle of Man: advice.iom@dixcart.com.

Alternatively, you can connect with Paul on LinkedIn or find out more about our Dixcart Air Marine services here.

Dixcart Management (IOM) Limited is licensed by the Isle of Man Financial Services Authority.

This information is provided as guidance and should not be considered advice. The most appropriate vehicle is determined by individual client needs and specific advice should be sought.

Background

Malta has gained a high reputation in the shipping and yachting world, not only because of its geographical location but also because it offers attractive and competitive incentives, thereby making Malta one of the top flags in the world. Malta’s solid roots as a maritime location continue to enhance and expand the island’s footing in the maritime industry.

As well as creating a complete service offering for yachts; from shipyards to berthing facilities, to chandlers to maritime professionals, Malta offers ship and yacht owners several attractive solutions, including attractive VAT incentives for yacht and superyacht owners.

Reduced VAT Rate for short term charters as from the Start of 2024

As from 1^st January 2024, short term charters commencing in, Malta have benefited from a reduced 12% VAT rate, subject to the fulfilment of certain criteria.

The Tax & Customs Administration of Malta have released new Guidelines, specifically tailored for the application of the 12% Value Added Tax (VAT) rate, pertaining to the rental of pleasure yachts.

The Guidelines can be accessed by clicking this link.

VAT Treatment of Yachts Intended for Private Use

In March 2020, Malta published its guidelines establishing the means by which leased pleasure yachts are to be treated for VAT purposes, with a particular focus on the use and enjoyment provisions on yacht leasing supplies. The Guidelines issued on the subject matter reflect EU developments and practices.

With respect to operating leases, it is possible for a lessor/owner of a yacht to lease out their yacht to a lessee for a consideration, for a specified period of time. Through such a structure, VAT would be payable by the lessee on the monthly lease instalments, depending on the actual use and enjoyment.

In order to benefit from the said VAT treatment, the following conditions must be satisfied:

• The lessor must be a Maltese entity, to be eligible for the Yacht leasing Scheme;
• There must be a yacht leasing agreement in place between the lessor and lessee setting out the conditions of the lease;
• The lessee must be a non-taxable person i.e. not using the yacht for commercial business purposes;
• The yacht must be placed at the disposal of the lessee in Malta;
• The lessor must maintain documentary and/or technological data to determine the actual use and enjoyment of the pleasure boat within and outside EU territorial waters;

This VAT treatment works depending on the ratio of use and enjoyment of the yacht in or outside EU territorial waters.

As a rule, full VAT payment at the rate of 18% is payable when the place of supply of the service is in Malta; however, in cases where the actual effective use and enjoyment of the pleasure yacht would be outside EU waters, there is an adjustment method that would apply.

The result will be that VAT would only be charged on the actual use and enjoyment of the yacht by the lessee in EU territorial waters. To this end, no VAT shall be due on the portion of the lease where the yacht is effectively used and enjoyed outside EU territorial waters.

Therefore, Malta VAT will be applicable solely on the use of the yacht within EU territorial waters; depending on the effective use and enjoyment of the yacht, possibly making it amongst the lowest VAT rates within the EU Member States.

Importantly, the VAT treatment options also provides an element of flexibility when it comes to exiting or terminating the lease. In the eventuality that at the end of the lease the lessor decides to contract the sale of the yacht in Malta, then VAT, at the prevailing standard rate, is charged on the value of the yacht upon subsequent sale.

In such a case should the Maltese VAT Department be satisfied that the necessary rules and regulations have been duly observed, a VAT Paid Certificate would be issued at their sole discretion.

VAT Treatment of Yachts intended for Commercial Use

Yachts intended for commercial use may opt for VAT deferment on the importation as follows:

• Obtaining a VAT deferment on the importation of the commercial yacht by a Maltese owning entity having a Maltese VAT registration; without needing to set up a bank guarantee (as historically required); or
• Obtaining a VAT deferment on the importation of the commercial yacht by an EU owning entity having a Maltese VAT registration, provided that the company duly appoints a VAT representative in Malta, without needing to set up a bank guarantee (as previously required); or
• Obtaining a VAT deferment on the importation of the commercial yacht by a non-EU owning entity, on provision by the importing entity, of a bank guarantee amounting to the VAT payable on 0.75% of the value of the yacht, capped at one million euros.

To opt for the first proposed VAT deferment structure, one would need to incorporate a company in Malta, and this company would need to obtain a valid Malta VAT identification number. In each instance, the importation of the commercial yacht will require the yacht to physically sail to Malta to undergo VAT and Customs procedures.

Following which, the yacht would be imported into the European Union, with the VAT payment deferred accordingly, rather than paid upon importation. In such a case, the yacht would be able to sail freely and circulate within EU waters.

Services Available from Dixcart Malta

At Dixcart Malta we have a dedicated team of professionals dealing with yachting matters including, but not limited to; yacht importation, flag registration, resident agent services, crew payroll. We are also able to assist with a number of your Yachting related needs.

Additional Information

For further information about Malta Maritime services please contact Jonathan Vassallo, at the Dixcart office in Malta: advice.malta@dixcart.com.

Our Malta office had the pleasure to interview Capt. Charles Pace, the Director of the Civil Aviation Directorate. Capt. Pace shared his views on the current status of the aviation sector in Malta, the competitive edge that Malta has compared to other jurisdictions, new market segments and his vision for the future.

Malta is now an aviation hub, with a Maintenance, Repair and Overhaul (MRO) sector, flight training and aviation software providers, as well as increased interest in Unmanned Aerial Vehicle Development. Malta is also part of important international agreements such as the Cape Town Convention. International players such as Lufthansa, Malta Air, Wizz Air, Lauda Air and more have chosen Malta as one of the bases for their operations. What are the main drivers that led these companies to take such decisions?

“The robust legal framework, the use of the English language, a favourable taxation and also the efficiency of the Civil Aviation Directorate are the main reasons mentioned by many companies. It is a fact that many companies move operations to Malta from other jurisdictions. They tell us how difficult it can be to do business in certain countries and that we give them a level of efficiency that is highly appreciated. The fact that our staff go the extra mile to process applications and to travel at short notice is extremely appreciated, as well as the availability, accessibility and willingness of our inspectors to assist during the application process. We also have an online system through which all applications are received. This cuts down on time and paperwork and is a transparent way of processing applications. The team at CAD has grown in size and, at the same time, is also much more proficient. Through a balanced pragmatic approach, we try to tick all the boxes.”

Malta is also an interesting jurisdiction for aircraft leasing structures, and there is a strong intention to further reinforce Malta’s offering in this space. How does this work? What are the current advantages for leasing structures in Malta and, in your opinion, what are the elements needed to further reinforce Malta’s offering in aircraft leasing?

“Leasing has been present in Malta for a while now. A few years ago, we carried out an analysis of our laws and made some tweaks to improve Malta’s position. Today, we have a very good product and companies have started to look at Malta as an alternative jurisdiction. In this period, we would need more exposure as well as buy in by the local banks. This being said, there are several companies that already operate through Malta. I would estimate around 400 aircraft are leased through Malta based companies, and this could easily double in the near future with other companies taking the plunge. We will have to prepare for an increase of the market size, for instance by creating university degrees that include modules related to leasing, and aviation accounting practices. We need more visibility both internationally and locally, to attract more business but also to create the talent that is needed to service a growing industry.”

In recent years, there is the tendency for airlines to lease their aircraft, rather than buying them. Many Malta AOCs owners offer this kind of services to commercial airlines – do you see space for further growth? Why is Malta better positioned, compared to other jurisdictions?

“Aircraft, crew, maintenance, and insurance (ACMI) has been very popular even pre COVID-19. Today, with the delays in production of new aircraft and also groundings due to engine problems, ACMI operators are very much in demand.  The Phenomena allows legacy carriers to increase capacity on demand and to replace grounded aircraft. I believe that this will remain a strong market for at least 3 more years due to lack of capacity. The problem is that many carriers are not letting go of aircraft as the new ones on order are delayed. With this scheme, we need to keep in mind however that the margins are tight, and many airlines will struggle despite the high demand. Cost is continuing to increase due to labour demands, fuel (even more with the introduction of SAF mandates kicking in next year) and overflying charges. This leaves airlines in precarious situations as we have seen with first quarter results of at least two major groups lately.”

Since you became Director of the Civil Aviation Directorate, in 2016, the industry grew and so did the Malta Aircraft Registry, which now counts over 880 aircraft and 52 Air Operator Certificate owners. Such growth needs to be constantly supported by the various administrative structures. What were the main challenges that the CAD had to face, to keep up with this growth? 

“Working within the public sector might present, at times, significant challenges because you often need a private sector mentality and the flexibility of a private enterprise to be able to give stakeholders what they need. For instance, some of the main issues were improving the remuneration for staff, getting enough headcount and have the agility to change things quickly.

The industry has gone through highs and lows both of which have brought challenges. High demand for flying means airlines recruit and offer better conditions. This makes it difficult to find people to take up regulatory posts and therefore retention becomes even more crucial. During the pandemic, the situation was the opposite, with many looking for a job but unfortunately for us, some of those who came to us for a job in those dark days left as soon as things improved in the industry. Loosing people at short notice after giving them training is a bitter pill to swallow but is something that happens in many economic sectors. 

A significant change that happened in recent years is that when I first joined, we did not accept helicopters or simulators. Today, on the contrary, we regulate the full range of activities. We have examination centres in other countries and have quite a few projects in the pipeline. Malta offers a low fixed rate of income tax to attract individuals to Malta and this has proven to be a very successful initiative that distinguishes Malta from other countries. In a way, we have been victim of our own success, and it is now difficult to match expectations of the industry while following the procedures of the public sector.”

Unmanned Aerial Vehicles are another sub sector in which Malta aims to become a main player at the international level. UAVs open the door to a multitude of services and operations. What are the main opportunities that you see, in this space?

“Since legislation was introduced by the EU, we have been monitoring the developments. We have a dedicated portal for UAVs and are actively seeking to bring to the island a testing facility that will allow research or testing of larger drones. I am very much interested in using new technology to improve urban mobility: I believe that this will be the future and we need to embrace it. The size of Malta makes it even easier as trips are short favouring electric aircraft which might not be that yet suitable for longer flights. One of the main challenges with new technology is the rather lengthy process of certification by EASA. Although millions are poured into Research and Development, the process to obtain certification and start commercial operations is taking longer than expected.”

You have recently returned from Geneva, where the CAD participated at the European Business Aviation Convention & Exhibition (EBACE) 2024. Was the event successful and do we expect further growth?

“Once again, the CAD participated with a stand at EBACE, in conjunction with the Malta Business Aviation Association. It was yet another opportunity to network, promote Malta and I must say that even this year CAD was very much busy meeting prospective clients and discussing future investments in Malta. The response was very strong, even more than expected, which indicates that we might be in for a productive period in the coming months.”

A look at the future: what do you think Aviation in Malta will look like, in 2035?

“I honestly think that the demand will peak in the next 5 years. I think there will be less airlines around and larger airlines will control the market.  I hope that, by then, we would deploy more aerial vehicles which would replace cars and even certain ferry boats between the islands.”

Dixcart Air Marine

Through our team of experienced professionals, Dixcart Management Malta Limited will assist you in all aspects of registering your aircraft in Malta. Services range from incorporation of the entity owning the aircraft in Malta and full corporate and tax compliance, to the registration of the aircraft under the Maltese Registry, whilst ensuring full compliance with Maltese Aviation legislation.

Additional Information

If you would like further information regarding Aircraft Registration in Malta, please speak to Jonathan Vassallo: advice.malta@dixcart.com, at the Dixcart office in Malta or to your usual Dixcart contact. 

The Malta’s Small Commercial Yacht Code is the latest addition to the Maltese yacht legislation. Malta offers deep natural harbours, a strategic position in the middle of the Mediterranean, a climate with 300 days on sunshine per year, widespread use of English and an attractive lifestyle. Add these elements to a robust regulatory framework, state of the art marinas, refit and repair facilities, highly professional international operators and service providers and you will obtain a fully-fledged, international maritime hub. Malta has lined up, over the years, all requirements to be attractive in the yacht and superyacht industry.

The advantages of the Malta Flag

Malta has a long maritime tradition, with a very deep understanding of the industry and a reputable and an internationally recognised register, all supported by a clear, business-oriented vision. Having a yacht flying the Malta flag has numerous advantages, and we invite all those interested to read our article on why considering to register a vessel under the Malta flag.

A forward-looking authority that listens to the operators

The Merchant Shipping Directorate introduced Malta’s Small Commercial Yacht Code (sCYC), effective from the 1^st of April 2024, following an extensive consultation process that involved all relevant industry stakeholders. The small commercial yacht segment has been in constant increase in recent years, and the introduction of the sCYC aims to meet the needs, demands and technological advancements of the yachting industry while, at the same time, ensuring compliance with international safety standards.

Applicability and exclusions

The Code is applicable to yachts under commercial use that:

1. Are at least 12 metres in hull length;
2. Are less than 24 metres in length;
3. Are engaged in commercial operations;
4. Carry no more than 12 passengers.

The code does not apply to Category D vessels, Rigid Inflatable Boats (RIBs), military vessels and any other vessel that is operated for non-commercial use.

The code also states that yachts may be exempted, on a case-by-case basis, and at the sole discretion of the Administration, from any of the Code’s requirements which are proven to be disproportionately onerous and technically impracticable for the yacht.

What changes for the small commercial yachts

One of the most relevant changes is that, under the sCYC, yachts from 12 metres, which previously fell outside the scope of the Commercial Yacht Code (CYC), may also be registered commercially under the Malta flag.

The sCYC updates and replaces the requirements included in the CYC, and all CYC certified yachts are deemed, automatically, to be compliant with the sCYC. However, the sCYC states that any small commercial yacht must be compliant with the new requirements at the time of the vessel’s first renewal survey conducted after 1^st June 2024. In addition, sCYC Certified Yachts operating in the territorial waters of other countries must also adhere to any additional requirements stipulated by those specific countries.

The Small Commercial Yacht Code identifies the requirements in terms of safety, crew welfare and pollution prevention that are appropriate to vessels sized between 12 and 24 metres. The regulator addresses the needs of the operators while maintaining these requirements in line with those set out in international conventions and EU Regulations and Directives. This approach of using the EU Recreational Craft Directive (2013/53/EU, as amended) as the basis for the Code is clearly visible with regards to yacht’s design, stability and structure.

Conclusion

The new Small Commercial Yacht Code caters for the specific needs of this niche market. The code encourages more yacht owners to adopt the Malta flag and join the charter market by operating commercially in the Mediterranean and beyond. With this Code, the regulator addresses and accommodates the unique features of this niche market that has been gaining relevance in recent years.

Dixcart in Malta

At Dixcart Malta we have a dedicated team of professionals dealing with yachting matters including, but not limited to, yacht importation, flag registration, resident agent services, crew payroll. We are also able to assist with your Yachting related needs.

Additional Information

For further information about Malta Maritime services, please contact Jonathan Vassallo, at the Dixcart office in Malta: advice.malta@dixcart.com. Alternatively, please speak to your usual Dixcart contact.

The Isle of Man is a self-governing Crown Dependency that has become a leading non-EU jurisdiction for luxury asset holding vehicles, particularly for superyacht ownership structures.

In the below video we highlight the key features that make the Isle of Man an ideal location for superyacht ownership entities:

How Dixcart Can Assist with your Isle of Man Superyacht Planning

Since 1989, Dixcart has supported clients and their advisers with the establishment and management of Isle of Man holding structures. They have developed strong ties with industry leaders, including yacht builders, shipping registrars, yacht managers, maritime lawyers, and tax professionals. Dixcart can draw on this expertise to ensure client structuring is effective and run efficiently.

Dixcart Isle of Man excels in all aspects of superyacht planning, including the use of Temporary Admission, making their team exceptionally well-placed to support your structuring needs.

Get in touch

If you or your client are considering the establishment of an offshore luxury asset holding strucutre, please feel free to get in touch with Paul Harvey: advice.iom@dixcart.com

Dixcart Management (IOM) Limited is Licensed by the Isle of Man Financial Services Authority

The aviation sectors in Malta and Cyprus are experiencing significant growth, leveraging their strategic geographic locations and favourable regulatory environments. These islands are becoming pivotal aviation hubs in Europe, offering a range of services from aircraft registration to appealing leasing schemes.

Expansion and Regulation in Malta’s Aviation Sector

Over the past decade, Malta has solidified its position as a key player in the aviation industry. The government’s proactive approach has helped establish a supportive ecosystem, including a Maintenance, Repair, and Overhaul (MRO) centre that caters to the needs of a growing fleet. The establishment of flight training providers and flight software operators has further enhanced Malta’s aviation infrastructure.

Recent years have seen Malta develop robust drone regulations, creating lucrative opportunities for companies in the Unmanned Aerial Vehicles (UAVs) space, particularly those involved in photo and videography. This regulatory framework makes Malta an appealing destination for aviation-related businesses.

Malta’s Strategic Aviation Benefits

As a regional aviation hub of international repute, Malta’s Aircraft Registry has grown to include over 800 aircraft and 40 Air Operator Certificate owners (AOCs). The presence of international airlines such as Lufthansa, Malta Air, WizzAir, and Lauda Air underlines Malta’s status as a base for operational excellence.

Moreover, Malta offers attractive leasing structures, facilitated by favourable taxation policies. Notably, income from aircraft ownership, operation, or leasing is not taxable in Malta unless remitted to the country. Additionally, there is no withholding tax on lease payments where the lessor is not a tax resident, alongside opportunities related to tax depreciation and shareholder tax refunds.

Malta is a member of the Cape Town Convention on International Interests in Mobile Equipment (or Cape Town Treaty), which standardises transactions involving movable property. These international standards supersede national legislation, therefore the presence of a clear set of rules for aircraft transactions, lowers the risks of lessors (who enjoy preferential ranking remedies in case of default) and, therefore, reduces borrowing costs.

These aspects are complemented by an extensive network of over 80 Double Taxation Agreements (DTAs) and by the possibility, for aviation companies resident in Malta, to claim the notional interest deduction.

Cyprus’s Private Aircraft Leasing Scheme

Cyprus has established itself as prominent jurisdiction for individuals purchasing Aircraft for private use. This is all down to its underutilised Private Aircraft Leasing Scheme which can result in an attractive VAT rate being charged on the purchase of the aircraft. The reduced VAT rate is calculated based on the aircraft’s operational time within EU airspace, the type of aircraft and its maximum take-off weight. However, it should be noted that the eligibility criteria for the scheme are rigorous, but it can result in substantial savings for qualifying purchases.

Cyprus’ host of Advantages for Individuals Purchasing an Aircraft

The private aircraft must be owned by a company registered for VAT in Cyprus (the Lessor) and leased to any physical or legal person that is established in, or resident in, the Republic of Cyprus and not engaged in any business activity (the Lessee).

When you couple this with the fact that Cyprus has one of the lowest corporate tax rates in the EU at 12.5%, you can start to see why the opportunities with leasing private use aircraft have put Cyprus’ aviation industry on the map.

Additionally, the aircraft in question can be registered under any global aircraft registry and is not limited to the Cyprus Aircraft Register.

Qualification Requirements

As can be expected, due to the savings that can be made by applying this scheme there are a number of specific requirements that need to be met.

The key qualification requirement is the receipt of prior approval from the VAT Commissioner. This is done on a case-by-case basis and the VAT Commissioner reserves the right to refuse any application they wish.

Other additional qualification requirements are needed as well in order for the Private Aircraft Leasing Scheme to apply.

How Dixcart Facilitates Aviation Operations

In Cyprus, Dixcart’s services encompass establishing and managing VAT-compliant leasing structures, drafting lease agreements, and securing approvals from the VAT Commissioner. We also handle the importation of aircraft into Cyprus, assisting with all related customs clearance processes.

Dixcart Management Malta Limited offers extensive services to assist with every aspect of aviation operations in Malta. These include the incorporation of entities owning aircraft, full corporate and tax compliance, and registration under the Maltese Registry while ensuring adherence to local aviation legislation.

How can Dixcart Help?

Both Malta and Cyprus offer unique advantages for aviation-related activities, making them ideal jurisdictions for entities and individuals looking to optimise their operational and financial efficiencies. Dixcart is well-equipped to provide detailed guidance and comprehensive services in both regions.

For further information regarding aircraft registration in Malta, please contact Jonathan Vassallo at advice.malta@dixcart.com. For details on the Cyprus Private Aircraft Leasing Scheme and other services, please contact us at advice.cyprus@dixcart.com.

To Learn more about Dixcart’s aviation services visit www.dixcartairmarine.com or read our comprehensive article.

Introduction

Dixcart Air Marine specialises in assisting clients with the registration, and ongoing management of various assets, including aircraft, ships, and yachts.

With a global network of experienced professionals, Dixcart provides tailored services to meet the unique needs of professionals and their clients.

Aircraft registration is a complex topic, and this guide aims to explore the advantages of aircraft registration in the following jurisdictions: Cyprus, Guernsey, Isle of Man, Madeira (Portugal), and Malta. For additional information, please contact us to be put in touch with an expert: advice@dixcart.com

Aircraft Registration Services Provided by Dixcart Air Marine

From assistance with importation to registration and corporate structuring, we provide expert assistance every step of the way.

With extensive experience in providing support for the importation of aircraft into the EU, Dixcart handle all preparation work and customs clearance procedures, ensuring a streamlined process.

When it comes to registration, we understand the importance of choosing the right jurisdiction based on the aircraft’s usage and location.

Dixcart can establish the appropriate ownership structure, guiding clients through the intricacies of registration with precision and efficiency. Additionally, our corporate structuring services cover accounting, secretarial tasks, VAT, and tax advice, providing professional advisers and clients with a commercial approach to managing aircraft assets.

Choosing the Right Jurisdiction

Dixcart offers expert advice in selecting the most tax-efficient ownership structure and jurisdiction for aircraft registration. With extensive experience and offices in key jurisdictions; including Cyprus, Guernsey, Isle of Man, Malta, and Portugal.

Dixcart ensures efficient coordination of the registration process. Our knowledgeable team provides insights into the regulatory frameworks, tax incentives, and operational considerations, enabling clients to make informed decisions, aligned with their objectives.

Advantages of Aircraft Registration in Cyprus

Cyprus offers a favourable regulatory environment and tax incentives for aircraft registration. With competitive fees and an efficient registration process, Cyprus is an attractive choice for aircraft owners seeking reliability and cost-effectiveness.

Additionally, Cyprus’ strategic location provides easy access to European and international markets, enhancing the aircraft’s operational flexibility.

The Private Aircraft Leasing Guidelines provide that Cyprus VAT will only be applied on a percentage of the lease consideration. The applicable percentages have been determined by the Tax Department and depend on the, length, type of aircraft, and an indication of the presumed time of use of the aircraft in EU air space. There is therefore, no need to maintain a detailed record or log books of the movements of the aircraft, for VAT purposes.

To benefit from the Cyprus Private Aircraft Leasing Guidelines, the private aircraft can be registered under any Aircraft register in the world and not necessarily under the Cyprus Aircraft Register. Certain conditions must be met, and the prior approval of the Cypriot Tax Commissioner needs to be obtained in each case.

If you would like further information regarding Aircraft Registration in Cyprus, please contact advice.cyprus@dixcart.com

Advantages of Aircraft Registration in Guernsey

Guernsey’s reputable regulatory framework and tax-efficient environment make it an ideal jurisdiction for aircraft registration. As a member of the Red Ensign Group, Guernsey adheres to high standards of safety and professionalism in aviation. With streamlined administrative procedures and access to a wide range of aviation-related services, Guernsey offers stability and efficiency for aircraft owners.

Guernsey’s Channel Islands Aircraft Registry, ‘2-REG,’ offers simplified registration with a neutral ‘2-‘ nationality mark.  Registration is available out of sequence; the 2- followed by a four-letter combination, allows for significant personalisation and branding opportunities.

2-REG accepts transfers from various registers, improving flexibility and with a secure mortgage registration system and global inspector network, it offers convenience and security.  

If you would like further information regarding Aircraft Registration in Guernsey, please contact advice.guernsey@dixcart.com

Advantages of Aircraft Registration in Isle of Man

The Isle of Man offers advantageous VAT arrangements and tax benefits for aircraft owners. With a robust regulatory framework and simplified customs procedures, the Isle of Man provides flexibility and efficiency for aircraft registration. In addition, the Isle of Man’s status as a crown dependency of the United Kingdom, ensures adherence to international standards and conventions, instilling confidence in aircraft owners and operators.

With over 1,000 registered aircraft, the Isle of Man Registry ranks as Europe’s second-largest private business jet register and sixth largest globally. It offers a neutral “M” registration prefix and upholds high regulatory standards.

Operating on a commercial yet cost-effective basis, the Isle of Man boasts; zero corporation tax, no insurance premium tax and VAT alignment with the UK. In addition, no capital gains taxes, no capital transfer tax, and no general withholding taxes are payable in the Isle of Man. A final benefit is that no insurance premium tax is payable.

If you would like further information regarding Aircraft Registration in the Isle of Man, please contact advice.iom@dixcart.com

Advantages of Aircraft Registration in Madeira (Portugal)

Madeira, as part of Portugal, provides a credible option for aircraft registration with EU compliance and tax advantages. Madeira presents a compelling option for aircraft registration, leveraging the advantages of INAC’s (the regulatory authority for civil aviation in Portugal), streamlined processes and low registration charges.

Portugal’s registry requires no nationality stipulations for owners, with a rapid 10-day registration turnaround. In addition, Portugal has pioneered fractional aircraft ownership registration and INAC officers are experienced in this field.

INAC is a secure mortgage register – due to its international reputation and safety standards it is on the banks and financial institutions whitelist of aircraft registries.

Air operators that meet certain conditions and with a valid AOC granted by INAC, are entitled to deduct the VAT on the fuel supply, maintenance, lease, transfer, and repairs to the aircraft. They are also entitled to deduct VAT on the; acquisition, maintenance, repair, and transfer of equipment incorporated into the aircraft or used in its exploitation. This is provided that 50% of the aircraft’s flights are international.

If you would like further information regarding Aircraft Registration in Portugal, please contact advice.portugal@dixcart.com

Advantages of Aircraft Registration in Malta

Malta boasts a reputable aviation registry and extensive tax incentives for aircraft owners. With adherence to international conventions, Malta offers reliability and regulatory compliance for aircraft registration. Additionally, Malta’s comprehensive legal framework and experienced professionals facilitate smooth transactions for aircraft owners, minimising administrative burdens and maximising operational efficiency.

Malta’s location makes it logistically easy to provide access to European and African markets. It offers a wide spectrum of services in this sector such as; aircraft repair and overhaul, management, leasing, maintenance, and training, amongst others.

Aviation professionals can benefit from specifically designed expat tax status, and the taxation of aircraft structures in Malta offers advantageous frameworks, both for commercial and for private registrations.

The Double Tier Tax Structure allows tax free holding of funds and reinvestment of retained earnings through a Malta Holding Company and no withholding tax applies on the distribution of dividends.

In addition, Malta allows for registration of an aircraft under construction, if it is uniquely identifiable.

If you would like further information regarding Aircraft Registration in Malta, please contact advice.malta@dixcart.com

Conclusion and Dixcart Contact Details

Dixcart Air Marine offers comprehensive services to assist aircraft owners in selecting the optimal jurisdiction for registration dependant on their circumstances. Whether in Cyprus, Guernsey, Isle of Man, Malta, or Madeira (Portugal), Dixcart ensures efficient coordination of the registration process, and optimises the benefits available in the circumstances.

With expert guidance and practical solutions, Dixcart helps aircraft owners achieve their objectives efficiently and effectively in an ever-evolving global aviation landscape.

If you would like further information regarding Aircraft Registration, and aren’t sure on a specific jurisdiction, please contact advice@dixart.com for further assistance.

Introduction

Selecting the appropriate jurisdiction for ship registration is a critical decision for ship owners, as this decision impacts on; tax liabilities, operational flexibility, and regulatory compliance.

Dixcart Air Marine, with its extensive experience and global presence, offers comprehensive services to guide clients through the ship registration process in various jurisdictions. From pre-structuring advice to ongoing administration and management, Dixcart ensures a smooth and efficient process for their clients.

Ship registration is complex and while this guide includes relevant and useful information, you will also need to speak to one of our experts: advice@dixcart.com

Ship Registration Services Provided by Dixcart Air Marine

Dixcart Air Marine offers comprehensive support for vessel importation into the EU, ensuring efficient customs clearance procedures. Our expertise extends to establishing ownership structures and facilitating registration in the preferred jurisdiction, complemented by additional services to maintain compliance.

Dixcart’s corporate structuring assistance includes; accounting, secretarial, and ongoing corporate services, including directorships and filing essential returns.

Services Available from Dixcart

• Coordination and registration of the ship
• Assistance with the importation of the vessel into the EU, including any necessary customs arrangements
• Expertise on the relevant holding structure in the jurisdiction of choice
• Advice regarding a variety of tax incentives that may be applicable, including advice on VAT and corporate tax

• Administration and management of day-to-day operations, including accounting and secretarial services, monitoring costs, budgets and cash flow in relation to assets, and any statutory requirements
• Additional services, such as directorships or the provision of corporate office holders
• Assistance with crewing, including payroll and crew contracts

Choosing the Right Jurisdiction

Different jurisdictions offer unique advantages for ship registration, ranging from tax incentives to the regulatory framework. Research, planning, and professional advice are crucial in selecting the jurisdiction that best aligns with the owner’s objectives.

Dixcart provides professional advisers and clients with the necessary expertise to make informed decisions and maximise the benefits of ship registration. We offer direct experience and expertise in ship registration across the following jurisdictions, where Dixcart has offices; Cyprus, Guernsey, Isle of Man, Madeira (Portugal), and Malta.

Ship Registration in Cyprus- Features and Advantages

Cyprus has emerged as an attractive jurisdiction for ship registration, offering competitive advantages such as favourable tax provisions, low registration fees, and a growing shipping registry with international recognition. The Cyprus shipping registry has made significant strides in enhancing the quality of its fleet and related services.

Cyprus is now on the Paris and Tokyo MoU’s whitelist. Its benefits include VAT exemption on international transport outside the EU, income tax exemption for crew, and a competitive corporate tax rate. Cyprus offers a compliant tonnage tax system, protection for financiers, and adherence to maritime conventions. With competitive costs, Cyprus ship registration is an attractive choice in the industry.

Cyprus offers tax exemptions to international transport services, including VAT exemptions for operations outside the EU, and tax-free crew income on Cypriot vessels. Introduced in 2010, Cyprus operates under a tonnage tax system, aligned with EU standards and calculated based on net tonnage. This system replaces corporate tax, allowing mixed activities within groups.

Tax advantages also include exemptions for; dividend income, foreign profits, and withholding tax on income repatriation. Competitive registration costs further boost Cyprus’ appeal as a maritime hub.

If you would like further information regarding Ship Registration in Cyprus, please contact advice.cyprus@dixcart.com

Ship Registration in Guernsey- Features and Advantages

Guernsey’s reputable ship registry, coupled with its membership of the Red Ensign Group, ensures stability, tax efficiency, and regulatory compliance for registered ships. With streamlined administrative processes and access to a respected flag, Guernsey provides an attractive environment for ship owners looking for reliability and professionalism.

Guernsey’s rich maritime history continues with specialist services available to the marine industry. The registry accommodates vessels up to 150 gross tonnages, including pleasure yachts, with potential future tonnage increases. Commercial vessels of up to 24 meters in load line length can register, provided they comply with safety regulations. Efficient payroll solutions are also available, which comply with the Maritime Labour Convention, 2006.

If you would like further information regarding Ship Registration in Guernsey, please contact advice.guernsey@dixcart.com

Ship Registration in Madeira (Portugal)- Features and Advantages

Madeira, as part of Portugal, offers a credible option for ship registration with EU compliance, VAT advantages, and tax incentives for ship owning companies. With its competitive advantages and strategic location, Madeira provides a valuable opportunity for ship owners seeking efficiency and flexibility in their operations.

The International Shipping Register of Madeira (MAR) was established in 1989 as part of the Madeira International Business Centre (“MIBC”) “package” of taxation benefits. Vessels registered with MAR carry the Portuguese flag and are subject to the International Treaties and Conventions entered by Portugal. MAR is recognised for its high standards, EU credibility, and inclusion in the Paris MOU whitelist, ensuring reliable maritime operations.

Ship-owners registering vessels in MAR face no nationality restrictions and do not need a head office in Madeira; it is sufficient to have local legal representation with adequate powers. With just 30% of safe manning required to be “European”, flexible crew arrangements are allowed, with possible derogation if justified. Crew wages are exempt from income tax and social security charges in Portugal.

Additionally, MAR offers a flexible mortgage system, letting parties select the governing legal system for mortgage terms. Competitive registration fees, no annual tonnage taxes, and temporary registration options, such as bareboat chartering, are also available.

Shipping companies licensed in MAR enjoy a reduced 5% corporate tax rate until 2027. They also receive automatic VAT registration. Additionally, they benefit from exemptions on withholding taxes and capital gains tax under certain conditions. MAR also enables access to all Portuguese Double Taxation Treaties and Investment Protection Treaties, further enhancing tax advantages.

If you would like further information regarding Ship Registration in Madeira, please contact advice.portugal@dixcart.com

Ship Registration in Malta- Features and Advantages

Malta boasts the largest shipping register in Europe, offering a wide range of benefits for registered ships. From preferential treatment in ports to adherence to international conventions, Malta provides a comprehensive framework for ship owners seeking reliability and regulatory compliance. Additionally, Malta offers various tax incentives and exemptions, making it an attractive jurisdiction for ship registration.

The Malta registry is on the Paris MOU and Tokyo MOU whitelists, with no trading restrictions for vessels under the Maltese flag. The Maltese Shipping Tonnage Tax System provides tax dependent on tonnage, with exemptions for shipping activities. Ship management activities are now included in the tonnage tax system, exempting income derived from such activities.

Under the Malta Tonnage Tax System, taxation is determined by the size of vessels owned by a specific ship-owner or manager involved in maritime transport, following Maritime Guidelines. Unlike standard corporate tax rules, shipping operations are subject to an annual tax that includes a registration fee and annual tonnage charge, which decreases as the vessel ages. Fees depend on the vessel’s size, with younger ships receiving discounts and those aged 25-30 years incurring the highest charges.

If you would like further information regarding Ship Registration in Malta, please contact advice.malta@dixcart.com

Conclusion and Contact Details

Selecting the right jurisdiction and professional adviser, such as Dixcart, for ship registration is essential for maximising benefits and ensuring compliance with regulatory requirements.

Dixcart Air Marine, with its expertise and global presence, offers tailored solutions to meet the unique needs of ship owners. Whether attracted to; Cyprus, Guernsey, Isle of Man, Madeira (Portugal), or Malta, ship owners can rely on Dixcart to provide expert guidance and practical solutions throughout the registration process.

If you would like further information regarding Ship Registration, and aren’t sure on which jurisdiction, please contact advice@dixcart.com for assistance.

The Isle of Man is a leading jurisdiction for luxury asset holding vehicles and post the UK’s departure from the Single Market, it is particularly well suited to enable client’s planning for privately operated superyachts.

This short article highlights some of the most important features of the Isle of Man and the reasons why it is an ideal home for superyacht holding structures.

A Modern & Reliable Legal System

The Isle of Man is a self-governing Crown Dependency with an independent legal system developed on the principles of English Common Law. This provides a familiar and reliable legal framework for many international clients. This can also give third parties like yacht builders, financial institutions, suppliers etc. comfort.

The Isle of Man’s corporate laws also offer flexibility in the choice of holding structures and how they are managed. For instance, the island possesses two Companies Acts, each with distinct features, and a wide variety of corporate vehicles, from Companies to Limited Partnerships with separate legal personality to Foundations.

For instance, the dynamic Companies Act 2006 provides for a procedurally streamlined corporate entity, suitable for holding a wide range of assets, including superyachts.

A Favourable Tax Regime

The Isle of Man famously offers a favourable tax regime which can be very beneficial for asset holding structures, offering headline rates such as:

• 0% Capital Gains Tax
• 0% Inheritance Tax
• 0% Corporate Tax Rate
• No Stamp Duty

Importantly, the Isle of Man is in a Customs Union with the UK, and therefore the Isle of Man falls under the UK for VAT purposes.

Since the UK departed from the EU, private use Superyachts held by an Isle of Man entity can now benefit from Temporary Admission (TA) to the EU, provided they meet the wider TA criteria. You can read more about Temporary Admission here.

A Globally Recognised Regulatory Environment

The Isle of Man is held in the highest regard by all major developed economies and is committed to maintaining the highest standards of global compliance. The island’s leadership has been recognised by the OECD and the G20 by placing the Isle of Man on its ‘Whitelist’ of co-operative countries.

The Isle of Man Financial Services Authority (FSA) supports the Island’s strong economy and ensures its global standing. Through modern and effective regulation and enforcement, the Isle of Man FSA maintain confidence in the island’s flourishing financial services sector.

The Isle of Man FSA issue licenses and regulate Isle of Man Trust & Corporate Service Providers, giving clients and third parties peace of mind.

The strong regulatory environment has allowed the island to maintain robust relationships with the banks and financial institutions across the world. Further, the Isle of Man Companies Registry maintains a publicly available copy of the Company’s Charges Register. This can provide the lenders with further comfort.

For all of these reasons, superyacht holding structures can benefit from their association with a well-run financial centre like the Isle of Man.

A Heritage in Trust & Corporate Services for Superyachts

The Isle of Man has a long history of delivering Private Client planning solutions through leading Trust & Corporate Services Providers, such as Dixcart.

Since 1989, Dixcart has assisted clients and their advisers with their Isle of Man superyacht holding structures and more. During this time we have developed strong working relationships with some of the yachting industry’s leading experts, including Yacht Builders, Shipping Registers, Yacht Managers, Maritime Lawyers and Tax professionals etc.

Get in Touch

Whether you are preparing to acquire a vessel, or you are seeking to rehome your superyacht holding structure, please feel free to get in touch with Paul Harvey at Dixcart: advice.iom@dixcart.com

Dixcart Management (IOM) Limited is Licensed by the Isle of Man Financial Services Authority