Owning and administering an aircraft is complicated and there are many factors that must be considered when choosing the most suitable jurisdiction to import your aircraft, register it and where to establish the structure to hold it. It may not even be just one jurisdiction for everything as sometimes a multi-jurisdictional approach is required.
The Isle of Man is an established jurisdiction for business aviation and has an award-winning aircraft registry with excellent regulatory standards.
Before choosing the Isle of Man Registry, you will need to ensure that your aircraft meets the requirements for registration on the Isle of Man. So, what needs to be taken into consideration:
- Aircraft may only be operated for private, corporate, or aerial work purposes whilst on the Register.
- Commercial air transport operations are not permitted.
- Owners of Isle of Man registered aircraft must meet the ‘Qualified Ownership’ criteria.
- Transitional aircraft (aircraft awaiting commercial leases/sale) are eligible.
- Aircraft with MTOM of 5,700kg or above and twin turbine-engine helicopters may be registered.
Why the Isle of Man?
The Island has a strong and vibrant economy, a stable legal infrastructure and the longest serving unbroken parliament in the world. The Island is a popular location for registering aircraft for several reasons:
- Stable tax regime with no capital gains tax, no inheritance tax and zero rate corporation tax (where applicable).
- OECD compliant jurisdiction with IMF, FATF and EU regulations in relation to transparency.
- As a Crown Dependency of the UK the Isle of Man falls within the UK’s ratification of the Chicago Convention.
- ICAO Standards and Recommended Practices.
- Part of and inside the UK VAT and customs territory.
- Efficient Customs and VAT service
- Large network of professional advisors.
- Responsive and engaging Aircraft Registry.
- High service levels.
- High regulatory standards.
- Secure mortgage register and adoption of the Cape Town Convention.
- Neutral registration prefix “M-XXXX“ plus four characters i.e. M-ANDY.
Overall, the Isle of Man offers a stable, cost-effective and efficient aircraft registration process with a favourable tax regime and non-discriminatory policies. These factors make it an attractive jurisdiction for aircraft owners and financiers looking to register aircraft.
What is “Qualified Ownership”?
To register an aircraft on the Isle of Man Aircraft Register, you must qualify as per the Island’s Civil Aviation Legislation, The Civil Aviation (Aircraft Registration and Marking) Order 2022, Article 7. Qualified ownership criteria means that only the following are qualified to hold a legal or beneficial interest by way of ownership of an aircraft registered in the Isle of Man, or share in an aircraft:
- The Crown in right of the Isle of Man, the UK, or any part of the UK.
- Commonwealth citizens.
- National of any EEA State or Switzerland
- British protected persons
- Bodies incorporated in some part of the Commonwealth or having their registered office, central administration, or place of business in part of the Commonwealth.
- Undertakings formed in accordance with the law of the IOM, an EEA state, or Switzerland having their registered office, central administration, or principal place of business within the Isle of Man, An EEA State or Switzerland.
How can we help?
We provide aircraft registration, structuring and administration services for individuals and companies all over the world.
Company incorporation – we can form an Isle of Man to own an aircraft and provide directors, registered office and registered agent services.
Administration – we can undertake all aspects of company administration.
VAT registration – we can assist with VAT registration and administration in the Isle of Man including, where appropriate, reclaiming VAT paid on importation.
Accounting – we can undertake all aspects of accounting, book-keeping, tax and VAT compliance.
If you would like to find out more, please get in touch with us by email enquiries@bostonmfo.com or by phone +44 1624 692930.