GREECE Law and Practice Contributed by: Betty Smyrniou, Bahas, Gramatidis & Partners
1. Aircraft and Engine Purchase and Sale 1.1 Sales Agreements 1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement The execution of an aircraft or engine sale agreement, including the sale of an ownership interest in an entity owning an aircraft or engine, does not in itself create an obligation to pay taxes in Greece. The transfer of ownership upon completion of the sale agreement may be relevant for income tax and VAT purposes. This is especially pertinent if the lessee does not have VAT exemption and the asset is physi - cally situated in Greece – in which case, VAT may be due. For engine transactions, it is advisable to ensure that the engine is not located in Greece at the time of transfer. 1.1.2 Enforceability Against Domestic Parties The sale agreement does not need to be translated, certified, notarised or legalised to be enforceable against a domestic party. However, if legal proceed - ings are instigated before a Greek court, foreign lan - guage documents must be translated into Greek to be admissible as evidence in such proceedings. 1.2 Transfer of Ownership 1.2.1 Transferring Title Transfer of ownership of Greek-registered aircraft must be made in writing and registered with the air - craft register. There is a separate register for aircraft engines. The “transfer of title” to an aircraft or engine – or the bill of sale – extends to include all installed parts, such as an auxiliary power unit. If an entity that owns an aircraft or engine sells its ownership interest while remaining the owner, this constitutes a transfer of shares rather than a sale of the aircraft or engine.
1.2.2 Sales Governed by English or New York Law The transfer of title to an aircraft or engine physically delivered in Greece will be recognised if the bill of sale is governed by either English or New York law. For such bill of sale to be recognised in Greece, it must fully describe the aircraft – including type and serial number – and clearly indicate complete transfer of ownership. No other minimum substantive require - ments are needed. 1.2.3 Enforceability Against Domestic Parties The bill of sale needs to be notarised and apostilled if it has been executed abroad or must have the sig - nature of the signatory authenticated by a competent Greek authority to be enforceable against a domestic party. 1.2.4 Registration, Filing and/or Consent From Government Entities The bill of sale of a Greek-registered aircraft/engine should be filed with the relevant registry of the Hel - lenic Civil Aviation Authority (HCAA), together with all the documents required to register the new aircraft/ engine owner. Typically, the lessee applies for the registration of ownership change. The bill of sale needs to be notarised and apostilled if it has been executed abroad or must have the sig - nature of the signatory authenticated by a competent Greek authority. The documents required for the registration of the bill • the documents pertaining to the powers of attorney (notarised and apostilled) granted for the execution of the bill of sale; • the certificate of location related to the aircraft/ engine at the time of transfer; and • a VAT exemption document of the lessee if applica - ble, or payment of VAT or taxes if applicable, along with the documents related to the novation and transfer of the lease agreement. of sale include: • the bill of sale;
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