ISRAEL Law and Practice Contributed by: Charles Gottlieb and Osnat Issan, Gottlieb Gera & Co Advocates
An aircraft will be eligible for registration in the Reg - istry if: • it is owned by an Israeli citizen or permanent resi - dent, or by a corporate entity registered in Israel where at least two thirds of its directors are Israeli citizens or permanent residents; and • it is not registered in another jurisdiction. However, the Minister of Transportation (whose author - ity was delegated to the Director General of the Israel Civil Aviation Authority) may order the registration of an aircraft that is not registered in another jurisdiction, but does not meet the conditions set out in the first bulleted point, if it is convinced that there is sufficient linkage between the aircraft and the State of Israel. Pursuant to the Registration Regulations, the registra - tion of an owner’s interests with the Registry does not constitute a proof of title to the aircraft. 2.3.2 Registration If the Owner Is Different From the Operator The owner of an aircraft is registered with the Regis - try, regardless of whether it is also the operator of the aircraft. As the Registry is an owner registry, operator interests may not be registered with the Registry. 2.3.3 Aircraft/Engine-Specific Registers Israel does not maintain a register regarding leases of aircraft or engines. 2.3.4 Registration of Leases With the Domestic Aircraft Registry As the Registry is an owner registry, it does not pro - vide for the registration of leases. However, in order for a domestic operator to be able to operate an aircraft in Israel, the owner of such aircraft must register the aircraft with the Registry. As noted in 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register , the registration of an aircraft owned by a foreign person or entity with the Registry requires the consent of the Minister of Transportation (whose authority was delegated to the Director General of the Israel Civil Aviation Authority).
Additionally, under the applicable aviation regulations, an operator must file the lease agreement of an aircraft operated in Israel with the Civil Aviation Authority of Israel. The failure of a foreign owner of an aircraft to obtain the consent of the Minister of Transportation (as del - egated) would not allow for the registration of the aircraft in Israel. Thus, the receipt of such consent should be considered by the parties a condition prec - edent to the effectiveness of the lease. 2.3.5 Requirements for a Lease to Be Valid and Registrable Leases regarding aircraft operated in Israel do not generally require a specific form in order to be valid. However, certain operational and regulatory require - ments set out in local aviation regulations should be sufficiently addressed in the lease. As the Israeli Registrar of Aircraft is an owner registry, leases may not be registered therein. 2.3.6 Taxes/Duties Payable for Registering a Lease As noted in 2.3.3 Aircraft/Engine-Specific Registers , aircraft leases are not registrable in Israel. Thus, taxes or duties do not apply to the registration of a lease. 2.3.7 Registration of Aircraft in Alternative Countries Generally, commercial aircraft that are based in Israel are not registered in any jurisdictions other than Israel. 2.3.8 Requirements for Documents Concerning Registration The Israeli Registrar of Aircraft requires that the origi - nal bill of sale be presented to give effect to registra - tion of an aircraft. If the bill of sale is in a language other than Hebrew or English, a notarised and apos - tilled translation into Hebrew or English is required by the Registrar. For additional documentation that may be required, see 1.2.4 Registration, Filing and/ or Consent From Government Entities . 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor For tax requirements of a foreign lessor, see 1.1.1 Taxes/Duties Payable Upon Execution of the Sales
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