FRANCE Law and Practice Contributed by: Yves Hénaff d’Estrées, HENAFF D’ESTREES
2.3.2 Registration If the Owner Is Different From the Operator An aircraft may not be registered in France in the name of the aircraft operator if the operator is not also the owner, but it can be registered in the name of the owner if the owner is not also the operator. 2.3.3 Aircraft/Engine-Specific Registers Leases concerning aircraft are registered in the aircraft register. Engines may not be registered. 2.3.4 Registration of Leases With the Domestic Aircraft Registry To protect a lessor’s interests it is advisable, but not mandatory, to register a lease with the aircraft register in order to avoid the risk of joint liability with the lessee in the case of damage caused by the aircraft. The formalities are fairly simple and the owner must file, inter alia: • an original executed copy of the lease or of the novation and the certificate of acceptance; and • corporate documents such as its articles of associ - ation, a certificate of incorporation, and a list of the authorised representatives, with sample signatures. There are generally no government applications or consents required as a prerequisite to the execution and delivery of an aircraft and/or engine lease for an aircraft registered in France. 2.3.5 Requirements for a Lease to Be Valid and Registrable A lease does not need to be in a specific form or trans - lated, served, certified, notarised or legalised to be valid and registrable in the French aircraft register. 2.3.6 Taxes/Duties Payable for Registering a Lease The fees payable to the aircraft registration bureau for registering a lease are nominal. 2.3.7 Registration of Aircraft in Alternative Countries It sometimes happens that aircraft habitually based in France and operated by foreign companies are regis - tered in other countries, such as Ireland (eg, Ryanair).
2.3.8 Requirements for Documents Concerning Registration The French aircraft register requires that the bill of sale and the lease be filed in an original executed copy before it will accept and process the registration of an aircraft. Normally, translations from English are not required by the French register. 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor A foreign lessor will not be required to pay any income tax or capital gains upon leasing an aircraft or engine to a French lessee, but a foreign lessor established outside the European Union may be held jointly liable with the lessee for the payment of value-added tax. The lease agreement may provide that the lessee is under obligation to pay a lease rental net of any French taxes, including any withholding tax. Gross-up provisions are recognised. 2.4.2 Effects of Leasing on the Residence of a Foreign Lessor A foreign lessor cannot be deemed to be resident or domiciled in France as a result of its being a party to, or its enforcement of, said lease. 2.4.3 Engine Maintenance and Operations Liabilities in respect of aircraft or engine maintenance and operations may not generally be imposed on a foreign lessor under a lease as a result of its being a party to such lease. 2.4.4 Damage or Loss Caused by an Asset A foreign aircraft lessor may be held jointly and strictly liable with the lessee under a lease as a result of dam- age or loss caused by the aircraft, unless the lease has been registered with the French aircraft register. 2.4.5 Attachment by Creditors Creditors of a domestic lessee are not generally author - ised to attach an aircraft leased to it but owned by a different entity. Eurocontrol may however be author - ised by the French courts to attach a leased aircraft for unpaid route charges for debts of the operator.
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