We always advise owners to get in touch with us early on in the acquisition process, ideally before any manufacturer agreements or purchase contracts are signed, as the ultimate registration option will have an impact on a number of contractual and practical aspects of the procedure.
Our company’s attitude is that every owner has a different set of circumstances and needs, thus we treat each situation as an individual and consider a number of factors, including but not limited to the following:
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- Country of origin of the aircraft
- Residence of the major user(s) and their passengers of the aircraft
- Aircraft’s physical characteristics
- Aircraft’s current registration, if applicable
- Use of aircraft (either for charter or personal travel)
- Aircraft’s VAT status or comparable tax status
- Operational area and main base airport
- Specific operational and crew considerations
- Despite the aforementioned factors, we feel it crucial that basic owner preference always plays a significant role in the choice of registrar
- When an owner has chosen their preferred registration after consulting with us, it is then our duty to complete the registration of the aircraft
- In reality, the owner — who may be a person or a business — appoints us as authorised registration agents for a certain aircraft and we will then work with other third parties to complete this
- Aircraft owners can effectively delegate all formalities related to registering their aircraft in their name by using our services.
The following are our most often utilised aircraft registry jurisdictions:
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- Registration for VP-B and VQ-B in Bermuda
- (VP-C registration) Cayman Islands
- Guernsey (2- registration)
- (M- registration) Isle of Man
- Malta (registration 9H)
- San Marino (registration type 7)
- Great Britain (G- registration)
- (N registration) United States
Guernsey-based offshore aircraft closing and delivery
Introduction
This guide’s goal is to highlight some of the crucial factors affecting the decision of where to deliver an aircraft at the time of its transfer or sale between parties and to explain how Guernsey’s geographic location, fiscal standing, and facilities have helped the Channel Island become a centre of excellence for the completion of cross-border aircraft transactions.
The decision-making process behind the location of the closing
An aeroplane must be carefully positioned for the conclusion of its transfer from one owner to another.
If an aircraft is transferred inside a group of firms as part of a corporate restructuring, for example, or if there is an open market sale between unrelated parties, the transfer may be the outcome of a transfer between related parties.
The location of the aircraft at the time that legal title and ownership risk are transferred between them should be specifically considered by the parties to the transfer if sale or purchase taxes will be triggered.
Even if there is no actual tax to be physically imposed on the sale or paid on the purchase, the parties must still consider whether the location of an aircraft at the time of closing necessitates any kind of local fiscal registration.
In some circumstances, the parties involved should think about the potential effects of a sale on the way an item has been exported from its current location or will be subsequently imported into a jurisdiction by the new owner.
The effect of any third-party funding on the transaction is another thing to think about. Banks providing financing for the purchase of an aircraft will be interested in learning whether any mortgage or lien they may take on the aircraft is legally enforceable given that it was situated in a specific area at the time of its attachment to the aircraft.
The financial expenditures of moving the aircraft will be considered if it needs to be transferred to a certain location for the closing of a transaction. Obviously, travel time and the facilities that are available at the destination location are essential in terms of both cost and inconvenience if an aircraft needs to be transferred.
The facilities that are offered at the closing location should also be considered. Does the closure location, for instance, have adequate access to international centres in the event that transaction-related personnel, such as engineers and airworthiness surveyors, must go independently to the aircraft? Does the location have basic maintenance facilities and hangars in case an aircraft has to have its transponders or markings changed?
It’s crucial to consider the completion location’s time zone. In order to synchronise the facilitation of money transfers related to the transaction, the location must be operational when the banks of the Seller and the Buyer are active. When coordinating the paperwork for both the Seller and the Buyer to deregister and reregister an aircraft, the time zone is also a crucial factor.
Geographical position of Guernsey
Guernsey in the Channel Islands is less than an hour by air from London and Paris and two hours from Geneva and Nice, the Channel Islands are located in the Bay of St. Malo off the coast of France’s northwest.
Because Guernsey and the UK are in the same time zone, aircraft based there are strategically located to take use of the same banking and registry hours on both sides of the Atlantic.
Constitutional position of Guernsey
Guernsey is a self-governing Crown dependent with its own legislative body, local government structure, legal system, and courts operating under English law. The British Government is in charge of matters pertaining to defence and international affairs, especially those with the European Union.
Guernsey’s financial situation
In contrast to Jersey, which has a local sales tax known as the Goods & Services Tax or GST, Guernsey has neither sales taxes nor capital gains taxes.
The European Community’s customs and VAT do not apply to Guernsey.
Guernsey is a component of the UK’s customs area but is outside the country’s VAT territory.
The VAT systems in the EU and the UK do not apply to Guernsey.
Guernsey does not participate in the EU-ETS. There will be no EU emissions tax or registration requirements for operators of flights to Guernsey from locations outside the EU-ETS zone or from Guernsey to locations outside the EU-ETS zone.
Guernsey is not included in the UK’s Air Passenger Duty (APD) regulations.
Airport in Guernsey
The majority of business aircraft up to and including ACJ and BBJ gear can be accommodated at Guernsey Airport.
The following is important airport information:
- The ICAO code is EGJB.
- Code GCI for I.A.T.A.
- Location: (Click for Map) 49° 26′ 10N 02° 36′ 02W
- Runway 09/27, 1463 m x 45 m Elevation 336 ft
- Avgas fuel and Jet A1
Should you need further guidance please feel free to contact Frei Solicitors.
