SPAIN Law and Practice Contributed by: Alfonso López-Ibor and Olivia López-Ibor, Lopez-Ibor Abogados
• The Movable Assets Register is a register of title ownership and encumbrances/liens that provides evidence regarding the status of ownership and liens over the relevant aircraft/engine, upon which third parties can rely. 2.3.2 Registration If the Owner Is Different From the Operator The Aircraft Register is an operator register; therefore, the aircraft is registered domestically in the name of the operator as the lessee or owner. The actual ownership of the aircraft will be reflected in the Movable Assets Register as it is the register of title ownership. 2.3.3 Aircraft/Engine-Specific Registers There is no specific register for leases concerning air - craft or engines. 2.3.4 Registration of Leases With the Domestic Aircraft Registry The leases must be recorded both in the Movable Assets Register and the Spanish Aircraft Register. There are no leases subject to consent from the Span - ish government. To obtain provisional registration marks, the lessee must file the necessary documents with the Aircraft Register. Subsequently, to acquire definitive markings, the lease must be recorded with the Spanish Register of Goods and Chattels and then with the Aircraft Reg - ister. The process of recording a lease typically takes four to eight weeks. 2.3.5 Requirements for a Lease to Be Valid and Registrable The signatures on the lease must be attested by a notary and apostilled in accordance with the Hague Convention of 1961 or certified by a Spanish consul in the country where the lessor is domiciled. See 1.1.2 Enforceability Against Domestic Parties . 2.3.6 Taxes/Duties Payable for Registering a Lease In Spain, the registration of a lease is not subject to the payment of specific taxes. However, there are cer - tain costs associated with the registration of the lease
contract, such as administrative fees, registrar’s fees, notary fees and translation fees. 2.3.7 Registration of Aircraft in Alternative Countries A popular alternative country where Spanish-based aircraft are sometimes registered is Ireland, as it has favourable tax regimes and regulations for aircraft reg - istration and is known for attracting aircraft registra - tions from different parts of the world. Regulation (EC) 1008/2008 allows an EU air carrier to be registered not only in the country that granted the operating license but in the register of another EU country. However, this is subject to certain limitations; eg, the Spanish Civil Aviation Authority may insist that registration in such EU country be cancelled or may only allow it for a specific period of time. 2.3.8 Requirements for Documents Concerning Registration The Spanish Aircraft Register only requests cop - ies since documents are filed by electronic means. Documents need to be translated and notarised and/ or authenticated. Also, the Aircraft Register requests proof of previous submission and registration in the Movable Asset Registry where original copies of the relevant documents must be submitted, given that both registries work and operate in co-ordination in this area. 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor Foreign lessors are not required to pay any income or capital gains or other taxes upon leasing an aircraft or engine to a domestic lessee. 2.4.2 Effects of Leasing on the Residence of a Foreign Lessor Foreign lessors will not be deemed to be resident, domiciled or carrying on any commercial activity or business in Spain or subject to any tax in Spain solely as a result of the execution, delivery and performance of the lease. 2.4.3 Engine Maintenance and Operations The liabilities regarding aircraft or engine maintenance and operations rely on the lessee but each situation should be analysed on a case-by-case basis, as the
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