Malta is a tiny, unassuming island off the coast of Sicily, with a population of around a half a million. As of 2020, even though it is one of the smallest countries in the world, Malta has the eighth largest fleet in Europe, with 299 commercial aircraft.

Despite the country's small size, Malta's aircraft registry lists far more airplanes than its relatively small international airport could handle on a regular basis. So why Malta of all places? Surely, there are bigger airports out there.

There are a few reasons Malta would like to advertise more than others, and we’ll point out the PR reason first.

Level of Regulation and Standards

Registering an aircraft under a certain country means that those planes are held to that country's air regulations. For example, the Ukrainian low cost airline SkyUp reportedly plans to register an airline in Malta. Thus, though the airline fleet will mainly operate in and out of Ukraine, it is held to Maltese standards and regulations.

Because it is governed by the European Union Aviation Safety Agency (EASA), the Maltese aircraft register subjects its operators to some of the strictest regulations in the world. This provides aircraft owners with a sense of security, as its ICAO rating attests to the rigorous safety and security standards.

Moreover, Malta took additional measures to boost the aviation industry in 2012, by establishing the Safi Aviation Park, providing a number of aviation services, including training and repairs.

A great cover for the actual benefit a lot of business and private jet owners want to keep hush.

Competitive Aviation Registration Costs (A tax haven, if you will)

This is what KPMG has to say about the additional perks that come with registering your aircraft in Malta.

Malta's aircraft registry recognizes fractional ownership interests in aircraft - "innovative aviation arrangements" - and allows for the registration of aircraft that are under construction.
It has a large Maltese tax treaty network with over 70 countries, including the United States.
When the lessor is not a tax resident of Malta, there is no withholding tax on lease payments. Since 2007, Malta has provided an enticing corporate tax system through which non-residents can claim tax refunds.
Attractive direct and indirect aviation tax opportunities, including tax depreciation and partial shareholder tax refunds, for aircraft leasing
Tax depreciation rates that are competitive for aviation purposes, as well as partial shareholder tax refunds
There are no restrictions on the nationality of Maltese aviation company shareholders and directors.
Malta has ratified the Cape Town Convention on International Interests in Mobile Equipment, as well as its Aircraft Protocol. As this provides a reliable mechanism that establishes international standards for leases, security interests, and contract registration, creditors enjoy greater protection and more efficient resolutions while still allowing for lower borrowing costs.

These benefits definitely highlight the flexibility that lessors and creditors can both enjoy in their transactions and operations.

On the surface, Malta has proved itself to be one of the primary aviation hubs in the EU with its competitive aviation registration costs, continuous robust enhancements of its services and favourable corporate structures.

However, just look a little bit closer and you would realize there are greater benefits lying beneath the surface. Did you know about this already? If you ever have any aviation questions just drop the APERTUS team a message, there are tons of secrets about aviation to learn about (: