Gibraltar: A New Chapter in Aircraft Registration

Enjoying the wealth of an enviable historical heritage, Gibraltar today thrives as a politically and economically stable English-speaking jurisdiction located at a strategic crossroad between Europe and Africa.

Renowned for its legal integrity and regulatory credibility, Gibraltar remains an international jurisdictional benchmark. It enjoys the benefits of a thriving economy that is firmly anchored in a host of diverse industries ranging from financial services and e-gaming, to tourism and bunkering. This diversified economy is the bedrock of Gibraltar's growing prosperity, attracting international investment as well as skilled enterprise.

With the establishment of the Gibraltar Aircraft Registry and Gibraltar’s own Civil Aviation Authority, the territory is now uniquely positioned to extend this success into the aviation sector, offering an agile and compelling choice for business aviation.

Why Gibraltar?

Gibraltar remains the only common law jurisdiction in mainland Europe, offering an enforceable legal regime with a direct appeal route to the Privy Council which will be familiar to the aviation industry.

The territory's compact size allows for direct engagement between regulators, policy-makers, and industry stakeholders, fostering a responsiveness that larger jurisdictions often struggle to match.

Gibraltar offers a favourable, investor-friendly tax regime, thus endowing the jurisdiction with a competitive advantage for aviation transactions. For instance, there is no Value Added Tax (VAT); no import duty to be paid on aircraft, engines, spare parts and equipment carried and used solely on aircraft, and no capital gains tax. The territory also enjoys a 15% corporate tax rate and a territorial basis of taxation. The cumulative effect of these measures translates into a highly attractive fiscal environment for structuring aviation assets.

Other advantages offered by the jurisdiction may be summarised as follows:

• Dual-category registry: the Gibraltar Aircraft Registry will look to take on both private, and thereafter commercial aircraft on its register.
• Regulatory Credibility: UK DfT oversight and ICAO alignment lend credibility and reassurance to the operation from the outset.
• Accessible Legislation: A comprehensive legislative framework purposely written in plain, accessible English which promotes transparency, accountability, and confidence.
• Cape Town Convention: The Convention and Protocol have already been transposed into Gibraltar law.
• Established Financial Services Ecosystem: Integration with Gibraltar’s financial services sector - encompassing banking, insurance, and experienced corporate service providers - ready to support aviation transactions.
• Airport Access: Gibraltar International Airport offers inspection, servicing, and logistical support when needed, although Gibraltar registered aircraft shall not be required to touch down within the jurisdiction.

The Gibraltar Aircraft Registry will offer the global aviation community a compelling, reputable, and service-driven framework, consistent with Gibraltar’s established output in other sectors. Clearly, the territory’s unique features offer the Gibraltar Aircraft Registry strong guarantees of success.

Author:

Dr Stephen Noguera, Partner
stephen.noguera@hassans.gi