Malta: Aviation

Article 83bis of the Chicago Convention enables aircraft registered in one state to be operated by an entity in another state through formal agreements that transfer regulatory responsibilities. Malta's unique aircraft operator registry system allows non-Maltese operators to register aircraft while maintaining Malta's security framework and Cape Town Convention protections for lessors and financiers.

Malta's aviation finance sector is poised for significant expansion as the MFSA introduces a groundbreaking consultation on new rules for aircraft financial leasing companies. The proposed Article 3B framework offers an alternative pathway for companies to enter the aircraft leasing market without full licensing requirements, while maintaining robust regulatory oversight through a notification-based system with ongoing compliance obligations.

Malta's financial regulator has proposed a new regulatory pathway for aircraft financial leasing companies that offers an alternative to existing licensing requirements. The consultation introduces Article 3B to the Financial Institutions Act, creating a registration-based framework with specific substance and governance requirements that could reshape how aviation finance entities establish operations in Malta.

The aviation industry is unlike any other when it comes to VAT. An aircraft may depart from Malta, land in Italy, be leased by a company in Ireland, and owned by an entity in France.

On 25 June 2025, the European Commission unveiled the EU Space Act — a landmark legislative proposal and the first comprehensive framework of EU space law.

Malta has reshaped its aviation identity over the past 15 years. From solid legal reforms to tax optimisation and strategic clustering, it's now seen as one of Europe's most attractive jurisdictions for aircraft registration, leasing and aviation services.

Malta has continued to strengthen and streamline its aviation legal framework, through the coming into force of the Air Navigation Act, Cap. 641 of the Laws of Malta (the "Act"), on the 1st January, 2024.

On 8 June 2023, the European Court of Justice ("ECJ" or the "Court") gave a preliminary ruling on the interpretation and scope of Regulation No 261/2004 of the European Parliament...

On 8 June 2023, the European Court of Justice ("ECJ" or the "Court") gave a preliminary ruling on the interpretation and scope of Regulation No 261/2004 of the European Parliament...