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Aircraft Ownership Structuring in Europe

Designing SPV ownership, jurisdiction selection and VAT positioning for aircraft acquired and operated in the EU — built around how the aircraft actually flies, not around a registry brochure.

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What this is

Not asset holding. Aviation structuring.

Aircraft ownership in Europe sits at the intersection of corporate law, aviation regulation, VAT positioning and operational licensing. A generic holding structure does not survive here: ownership has to align with EU aviation rules, registry practice, and tax treatment tied to the aircraft's actual use and base of operations.

In practice, the structure is driven less by ownership efficiency and more by where the aircraft is based, operated and maintained — from hubs such as Nice (LFMN), Geneva (LSGG), Farnborough (EGLF), Malta (LMML) and Luxembourg (ELLX) to secondary bases across Spain, Italy and Germany.

Our role is to make the legal structure and the operational reality say the same thing — so it holds when a tax authority or aviation regulator looks at it years later.

At a glance

  • SPV setup & jurisdiction selection
  • VAT positioning under Directive 2006/112/EC
  • Dry / wet lease & operator alignment
  • Separation of title, control & use
  • EASA registry & AOC compatibility
  • Cross-border operation within the EU
Core structuring logic

One asset, three separated roles

At its core, the structure holds legal title through a dedicated SPV, then cleanly separates ownership, operation and beneficial use. That separation is what gives regulatory alignment and operational flexibility across EU jurisdictions.

01

Legal title

A dedicated SPV holds the aircraft. Its jurisdiction, substance and governance are chosen for regulatory positioning — not for a headline tax rate.

02

Operational control

Where an AOC is involved, operation is placed with an operator that can demonstrate genuine control, keeping private and commercial use properly delineated.

03

Beneficial use

Who actually flies the aircraft, and on what terms, is documented and aligned with the leasing chain — so the paperwork matches the flight logs.

04

The leasing bridge

Dry or wet lease arrangements connect the three roles. Each link needs a real commercial rationale, or the whole chain becomes challengeable.

When this is needed

Five moments where the structure is decided

Ownership structuring is rarely urgent until it is. These are the points at which getting it right — or correcting it — has the largest financial consequence.

Aircraft acquisition

Determining ownership vehicle, jurisdiction and VAT position before the purchase agreement is signed.

Risk if skipped: VAT position fixed by default, hard to unwind later.

Import into the EU

Assessing VAT exposure, registration options and the point and basis of import.

Risk if skipped: import reassessed on actual use, not entry point.

Charter or commercial use

Planning operation through an AOC or making the aircraft available for charter.

Risk if skipped: exemption denied if commercial use is not evidenced.

Cross-border ownership

Owner based outside the EU but intending to operate the aircraft within Europe.

Risk if skipped: mismatch between residence, registry and operating base.

Restructuring existing ownership

An existing structure that needs review because usage has changed, the aircraft has been re-based, or the arrangement predates the current regulatory and audit climate.

Risk if skipped: a structure that worked on paper years ago may no longer survive an operational-reality test.
What you receive

Defined outputs at every stage

Structuring is not open-ended advice. Each phase produces a concrete document you can act on, share with counsel, or put in front of a bank.

Stage 01

Exposure map

A written read of the current or planned structure against EU VAT and regulatory risk.

1–2 weeks
Stage 02

Structure memorandum

SPV configuration, jurisdiction, leasing model and AOC alignment, each choice reasoned.

2–4 weeks
Stage 03

Executed structure

Incorporation, operator coordination, legal documentation and banking alignment.

4–12 weeks
Stage 04

Position review

Periodic re-check against changing flight activity, ownership and regulatory practice.

Ongoing
Jurisdiction selection

A regulatory decision, not a rate comparison

Choosing where the SPV sits is about how that jurisdiction interacts with the VAT Directive, EASA recognition, import mechanics and substance requirements — for this aircraft and this operating pattern.

Malta
Strong aviation registry, established leasing frameworks, EASA alignment.
Isle of Man
Widely used for private jets; flexible registry, distinct non-EU VAT considerations.
Luxembourg
Suitable for structured ownership within broader holding platforms.
Ireland
Global leader in aircraft leasing with a deep financing ecosystem.
Spain / Italy / France
Relevant where operational base and hangaring create the tax nexus that actually governs the position.

Each interacts differently with VAT Directive 2006/112/EC (notably Art. 148 and Art. 56), local rules on commercial vs. private use, import VAT deferral, customs procedures (temporary admission, inward processing relief) and EASA Basic Regulation (EU) 2018/1139. There is no single "best" jurisdiction — only the one that matches the aircraft's real use.

What a structure has to survive

Four tests, all at once

A structure that is right on VAT but weak on substance fails just as completely as one that is wrong on both. We design against all four from the start.

Art. 148 · Directive 2006/112/EC

Commercial use, evidenced

Exemption for international transport is not granted by contract type. Flight activity, passenger profile and genuine arm's-length charter revenue decide it.

Regulation (EU) 2018/1139

Operational control under EASA

An AOC operator must demonstrate effective control. Nominal operator arrangements collapse the private/commercial distinction.

ATAD · Anti-Tax Avoidance Directive

Economic substance

A registered office is not substance. Decision-making location, management and genuine activity determine whether the SPV is respected at all.

OECD BEPS · Action 6 / PPT

Principal purpose test

If a tax benefit was a principal purpose, benefits can be denied regardless of formal compliance with each individual step.

Start here

Discuss your ownership structure

Four questions to open the conversation. If it's something we can help with, we'll come back with specific questions about jurisdiction, lease structure and operating history.

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