SERBIA Law and Practice Contributed by: Uroš Popović and Stefan Golubović, Drašković Popović & Partners
1.2.5 Taxes/Duties Payable Upon Execution of a Bill of Sale See 1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement .
2.1.6 Licensing/Qualification of Lessors The lessor does not have to be licensed or otherwise qualified in Serbia to do business with a domestic les - see. 2.2 Lease Terms 2.2.1 Mandatory Terms for Leases Governed by English or New York Law No mandatory terms have to be in a lease governed by English or New York law. 2.2.2 Tax and Withholding Gross-Up Provisions Tax and other withholding gross-up provisions are permissible and enforceable. 2.2.3 Parts Installed or Replaced After a Lease’s Execution The concluded lease can cover parts that are installed or replaced on an aircraft or engine after its execution. 2.2.4 Risk of Title Annexation There is no specific risk of title annexation in respect of aircraft engines installed on an airframe. 2.2.5 Recognition of the Concepts of Trust/Trustee The concept of trust/trustee of an owner is not recog - nised under Serbian law. 2.3 Lease Registration 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register An aircraft lease may be registered in the Aircraft Register. This is optional but advisable as the lease becomes a matter of public record once it is regis - tered. 2.3.2 Registration If the Owner Is Different From the Operator The Aircraft Register contains information regarding both the owner and the operator of the aircraft. Both the owner and the operator of the aircraft may there - fore be registered. 2.3.3 Aircraft/Engine-Specific Registers Lease information is registered in the Aircraft Register. There is no separate engine-specific register in Serbia.
2. Aircraft and Engine Leasing 2.1 Overview 2.1.1 Non-Permissible Leases
All types of operating/wet/finance leases or leases concerning only engines or parts are generally per - missible and recognised. 2.1.2 Application of Foreign Laws Contractual obligations between the parties to the lease agreement may be governed by a foreign law. However, issues of ownership over the aircraft and other proprietary rights are governed by the law of the land in which the aircraft is registered. While the contractual obligations (such as the ones stemming from the lease agreement) can be governed by a for - eign law, particular potential disputes that could stem from the lease agreement could be governed by Ser - bian law, if the aircraft is registered in Serbia (disputes concerning insolvency proceedings over the lessee, disputes over ownership over the aircraft and the like). 2.1.3 Restrictions Concerning Payments in US Dollars Rent payments may be made in US dollars. 2.1.4 Exchange Controls There are no specific exchange control rules that will prevent rent payments under a lease or any repatria - tion of realisation proceeds. 2.1.5 Taxes/Duties Payable for Physical Execution of a Lease The registration of the lease of an aircraft is option - al. However, if it is registered, the registration of the lessee with the Aircraft Register will cost between RSD4,210 (approximately EUR36) and RSD16,750 (approximately EUR140), depending on the category the aircraft is in.
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