GERMANY Law and Practice Contributed by: Konrad Schott, Jan Brinkmann and Johannes Vogel, Freshfields
2.3.8 Requirements for Documents Concerning Registration Generally, any document submitted to the LBA needs to be an original or a notarised (and, if and as applica - ble, apostilled or legalised) copy of such document, and certain documents in a foreign language need to be accompanied by a certified translation into Ger - man. As a matter of practice, the LBA accepts docu - ments in German or English. 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor Generally, a non-German tax resident lessor is subject to limited income taxation in Germany if the leased aircraft is registered in the German aircraft register irrespective of whether the lessee is domestic or not (subject to, and often reversed by, double taxation treaties). 2.4.2 Effects of Leasing on the Residence of a Foreign Lessor A foreign lessor being a party to a lease agreement or its enforcement does not generally result in lim - ited income taxation in Germany. The mere leasing of an aircraft or engine does not result in a foreign les - sor being deemed to be a tax resident, domiciled or carrying on a business in Germany. Rather, a foreign lessor’s income from a lease is subject to income tax - ation in Germany if the aircraft is registered in the Ger - man aircraft register (subject to, and often reversed by, double taxation treaties). 2.4.3 Engine Maintenance and Operations German law does not impose a general liability for the maintenance or operation of an aircraft or aircraft engine on the owner (unless it is also the operator) or lessor (if different from the owner). This can be differ - ent if the owner or lessor assumes control over the aircraft or engine (eg, in the case of a repossession) or, for example, in the case of emission rights if the oper - ator is unknown (which appears unlikely in the case of commercial aircraft). The owner can be obliged to provide information about the aircraft and its use – eg, in connection with the registration status or emission trading obligations.
2.4.4 Damage or Loss Caused by an Asset German law does not impose strict liability on the owner of an aircraft that is not the operator, or on the lessor (if different from the owner). In exceptional cir - cumstances, an owner can be held responsible for any hazard or danger caused by the aircraft under general rules of prevention of harm and damages. 2.4.5 Attachment by Creditors German law generally respects the owner’s title to the aircraft and does not permit enforcement into the aircraft to discharge the liabilities of any person other than the owner – eg, the lessee. There is potential liability of an aircraft for air traffic control charges or of the aircraft owner for emission charges if the operator is unknown. 2.4.6 Priority of Third Parties’ Rights If the aircraft is registered in the German aircraft reg - ister, it cannot be encumbered with statutory liens such as a workman’s lien. The owner of an aircraft can potentially be held liable for Air Traffic Control charges if the operator is unknown. Different rules may apply to engines that are off-wing. 2.5 Insurance and Reinsurance 2.5.1 Requirement to Engage Domestic Insurance Companies German law does not require that all or a certain frac - tion of the insurance coverage taken out with respect to an aircraft be underwritten by domestic insurers. However, the insurer must be permitted to do busi - ness in Germany. Owners and lessors customarily require that internationally renowned insurers under - write the insurance. 2.5.2 Mandatory Insurance Coverage Requirements An aircraft operator is obliged to maintain liability insurance that covers death and injury of passengers and third parties, delayed transportation of passen - gers, damage to, and destruction and loss of, trans - ported goods and the property of third parties. The minimum insurance amounts depend on the maxi - mum take-off weight of the aircraft and are provided for by European and German laws. The LBA will only issue an operating permit for an aircraft upon, inter alia, proof of sufficient liability insurance coverage for
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