PHILIPPINES Law and Practice Contributed by: Kerwin Tan, Eugene Kaw and Veronica Balbin, Tan Hassani and Counsels
on the establishment of a trust. Previously, aircraft in the Philippines could only be operated by a Philippine entity (such as a company or a trust), which must be considered a “Philippine national”. However, as dis - cussed in 2.1.6 Licensing/Qualification of Lessors , foreign owners and foreign-owned air operators are now recognised in the Philippines. 2.3 Lease Registration 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register The interest of the legal or beneficial owner, or a les - sor of an aircraft, may be registered with the CAAP. Such registration will serve as a notice to all persons of the interest in the aircraft of the legal or beneficial owner or of the lessor. Due to the updated regulations issued in 2025 by the CAAP, a foreign aircraft owner is now expressly indicated and identified in the aircraft’s certificate of registration. This is not merely a notation of interest, but rather an express recognition of the foreign aircraft owner, which was done only tangen - tially in the past. 2.3.2 Registration If the Owner Is Different From the Operator An aircraft can be registered in the Philippines in the name of the aircraft operator. The CAAP’s registry is an operator registry, and the aircraft operator will declare whether the aircraft is owned or leased. An aircraft’s certificate of registration is not issued directly in the name of the owner if the owner is not also the operator, but the CAAP’s updated regulations now provide for express recognition and identification of the foreign owner in the certificate of registration itself (see 2.1.6 Licensing/Qualification of Lessors ). 2.3.3 Aircraft/Engine-Specific Registers Generally, the CAAP serves as the national registration for aircrafts in the Philippines, including liens, mort - gages and other interests in aircraft or aircraft engines. The CAAP has sole authority to register aircraft and liens, mortgages or other interests in aircraft or aircraft engines. However, aircraft engines may be covered by the Per - sonal Property Security Act (PPSA). Notice of security interests and lien on aircraft engines may be regis -
tered with the Electronic Personal property Security Registry (PPSR). 2.3.4 Registration of Leases With the Domestic Aircraft Registry The lease and a lessor’s interest may be registered with the CAAP. Failure to register will not affect the validity of the lease, but such lease shall not be enforceable against persons who do not have notice of the exist - ence of such lease, and the aircraft shall not be oper - ated in the Philippines without the CAAP certificate of registration and certificate of airworthiness. The lease agreement shall be notarised in order to be registered with the CAAP. If executed outside the Philippines, it shall be apostilled or legalised in order to be registrable. No government applications or consents are required before the execution and delivery of an aircraft and/or engine lease in relation to an aircraft registered in the Philippines. However, the lessee is advised to prepare for the importation requirements. 2.3.5 Requirements for a Lease to Be Valid and Registrable The lease has to be in writing and notarised. If exe - cuted outside the Philippines, the lease agreement should be apostilled or legalised. If written in a lan - guage other than English, an English translation shall also be included. 2.3.6 Taxes/Duties Payable for Registering a Lease No taxes or duties are payable for registering a lease with the CAAP. However, the CAAP charges a minimal fee to register and record the lease. 2.3.7 Registration of Aircraft in Alternative Countries Aircraft habitually based in the Philippines are mostly registered in the British Virgin Islands, the Cayman Islands (or similar jurisdictions) and Ireland. 2.3.8 Requirements for Documents Concerning Registration The original wet signed document must be submitted for the registration of the lease. It shall be notarised
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