MALTA Law and Practice Contributed by: Joseph Ghio, Fenech & Fenech Advocates
1.2.2 Sales Governed by English or New York Law The transfer of title to an aircraft or engine physical - ly delivered in Malta will be recognised in the event that the bill of sale is governed by English or New York law pursuant to and subject to Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to con - tractual obligations (the “Rome I Regulation”). As regards minimum substantive requirements, the bill of sale will be recognised if it is substantively valid according to the law by which it is governed. However, the bill of sale or any condition therein must not be manifestly incompatible with the public policy ( ordre public ) of Malta. 1.2.3 Enforceability Against Domestic Parties As stated previously, if executed outside Malta and in a language which is neither English nor Maltese, it is advisable for a bill of sale to be translated, certi - fied, notarised or legalised to be enforceable against a domestic party. 1.2.4 Registration, Filing and/or Consent From Government Entities The Act imposes an obligation on the Director Gen - eral responsible for Civil Aviation in Malta (the “Direc - tor General”) to record in the Malta Aircraft Register (the ”Register”) the full name, address, email address and telephone number of the natural or legal persons having ownership rights on the aircraft. The Act also imposes an obligation on the registrant to inform the Director General of any change in the particulars that were furnished when the application for the registra - tion of the aircraft was made. Accordingly, evidence of a change in ownership will need to be given to the Director General forthwith or within five working days of a demand in writing from the Director General. The Director General will generally require a certified true copy of the bill of sale in English, and, if emanat - ing from outside the European Union (EU), it will also need to be notarised and apostilled. A bill of sale is not subject to any consent from any government entity nor are any government applica - tions or consents required as a prerequisite to the
execution and delivery of a bill of sale in relation to an aircraft or engine registered in Malta. 1.2.5 Taxes/Duties Payable Upon Execution of a Bill of Sale No taxes or duties are payable for executing and/or delivering a bill of sale or consummating the sale of the ownership interest in an entity that owns an aircraft or engine while it is located in Malta, or that is over international waters or is in transit to/from Malta.
2. Aircraft and Engine Leasing 2.1 Overview 2.1.1 Non-Permissible Leases
All types of aircraft leasing and leasing of engines or parts are permissible under Maltese law to the extent that they are not in breach of public policy and will be enforceable in accordance with their terms. 2.1.2 Application of Foreign Laws A lease involving either a domestic party or an asset situated in Malta can be governed by a foreign law pursuant to and subject to the Rome I Regulation. 2.1.3 Restrictions Concerning Payments in US Dollars There are no material restrictions imposed on Maltese lessees making rent payments to foreign lessors in US dollars. 2.1.4 Exchange Controls There are no exchange control rules existing in Malta that could prevent rent payments under a lease or any repatriation of realisation proceeds if such lease is enforced by a foreign lessor. 2.1.5 Taxes/Duties Payable for Physical Execution of a Lease No taxes/duties are payable for executing a lease physically in Malta and/or by or to a domestic party or as a consequence of an original or copy of a lease being brought into Malta either physically or electroni - cally.
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