Aircraft Registration

The 9H Register, as Malta’s aircraft registry is called, is the fastest-growing globally.

Major airlines, charter outfits, jet leasing companies, and individual owners have registered aircraft in Malta, highlighting the country’s ability to generate interest from a wide range of sectors.

The country’s tax incentives for aircraft leasing and ownership make it an attractive jurisdiction for those seeking to optimise their investment, and its strategic location has helped establish it as a convenient base for private aircraft, offering easy access to various European and North African destinations.

Malta’s aviation authority maintains stringent safety standards, ensuring that aircraft bearing the Maltese flag are synonymous with reliability.

Over the last 15 years, the number of aircraft registered in Malta has grown tenfold as the country has gradually gained a reputation as one of the go-to jurisdictions for the domiciliation of these valuable assets.

Europe’s biggest airlines – Lufthansa and Ryanair – have not only registered dozens of their aircraft on Malta’s 9H Register, but they have also established major maintenance, repair and overhaul (MRO) facilities on the island, reflecting their commitment through substantial investments.

In 2024, they were joined by easyJet, which took over one of Malta’s largest MRO operations. Apart from commercial liners, private jet charter operators like VistaJet and AirX, as well as several wet-lease companies, have also found Malta to be a welcoming home for both their aircraft and operations.

So why have some of the largest European players in the aviation sector chosen this small island on the edge of Europe to domicile their aircraft?

The answer lies in Malta’s successful application of a tried-and-tested formula to cultivate niche sectors: a mix of bold incentives, a tough but flexible regulatory framework, and an openness to dialogue resulting in bespoke solutions.

Supporting the smooth functioning of the industry are various ancillary services, including pilot and crew training schools, repair and maintenance facilities, refitting operations, and insurance, brokerage, surveying, and back-office set-ups.

The result is a package proposition that is tough to beat. Aircraft on the 9H Register can circulate freely around Europe and can be based and operated anywhere in the world. Aircraft registered in Malta can also take advantage of several specialised incentives, including an accelerated depreciation rate. Fractional ownership of aircraft is also possible, allowing co-owners, financed by separate creditors, to specify their individual stakes, and aircraft under construction or not in service are also accepted on the register.

Financiers also find Malta attractive, as the country’s ratification of the Cape Town Convention assures creditors that their interests are secure and allows for lower borrowing costs. As with ships, aircraft can be registered as security for debt, and such mortgages are not affected by the aircraft owner’s insolvency.

There’s more:

• There are no restrictions on the nationality of shareholders and directors of Maltese aviation companies, which can employ strategies to mitigate their tax exposure. In fact, Malta’s attractive corporate taxation regime, whereby shareholders may benefit from an effective tax rate of 5 per cent or even less, is particularly compelling for aviation stakeholders, with ownership, lease and operational (including charter) income on the international transport of goods and passengers being exempt from Maltese tax unless such income is remitted to Malta.
• There is no withholding tax on lease income and interest payments to non-residents, aircraft are not subject to stamp duty and no duty is charged when importing civil aircraft into Malta.
• Fleet operators will be especially pleased to know that Malta’s extensive network of double taxation treaties eliminates complex accounting processes, with income from the international operation of aircraft being taxable only in the country where the effective management of the company is situated. Additionally, employees incur income tax only in their respective country of employment – an attractive payroll-simplifying prospect for commercial airlines with a multinational workforce – while companies with private jets do not need to include their use by employees as a taxable fringe benefit.

Local authorities’ supportive stance towards foreign investment is also reflected in the active support provided by the Civil Aviation Authority within Transport Malta, which stands ready to contribute to a smooth registration process with its practical understanding of the sector. With regards to safety – a paramount concern – operators, passengers and lessees alike can rest assured that Malta-registered aircraft are subject to the most comprehensive safety regulations, overseen by the European Aviation Safety Agency, the body responsible for ensuring safety and environmental protection in air transport in Europe.

As the central location for aviation activities in the Maltese Islands, Malta International Airport is currently undergoing active expansion to better cater to the needs of the burgeoning industry, while preparations are underway to build a small airfield in Gozo for private and general aviation activities. Adjacent to the main airport is the Safi Aviation Park, operated by the state industrial parks company INDIS, which offers secure airside facilities in full compliance with applicable standards and hosts many of the leading entities operating in the Maltese aviation sector.

With the number of aircraft registered in Malta continuing to increase, the sector presents abundant opportunities for serious investors ready to play a role in the development of Malta as an aviation hub.

Who can register an aircraft in Malta?