Bermuda's aviation sector contributes significantly to
Bermuda's economy and has great potential for growth. This
article details 13 reasons why Bermuda is the jurisdiction of
choice for aircraft registration.
The Bermuda Civil Aviation Authority (BCAA) has a great deal of
experience and excellent credibility in the global aviation
industry. It has robust regulatory standards and an extremely
professional and responsive staff;
Bermuda's Aircraft Registry is a safe, well-regulated and
extensive registry which ranks 10th in size when compared to the
191 signatory States to the Convention on International Civil
The current Registry includes a mix of both private aircraft
and commercial aircraft operated under Article 83 bis
Leasing costs under an Articles 83 bis Agreement have been
reduced and air operators have reported higher residual values for
aircraft when resold;
The BCAA accepts Type Certificates from the EASA, the FAA and
Transport Canada. As a result, an aircraft from another registry
can be registered in Bermuda with minimal inconvenience and
expense, and if subsequently sold, it can be easily exported to
The BCAA has two secure mortgage registers (aircraft and
aircraft engines) which protects the interests of aircraft
financiers – when a mortgage is registered, the financiers
can not only obtain priority over unsecured creditors, they can
take possession of the aircraft if there is an event of default by
the owner or borrower and sell the aircraft to recover funds to
satisfy the debt;
Aircraft can be registered on the Aircraft Register using a
company incorporated anywhere in the Commonwealth or the European
Bermuda has a sophisticated infrastructure which includes depth
of market of experience, an internationally recognised stock
exchange (the Bermuda Stock Exchange) and a well-balanced and
sensible regulatory regime;
Bermuda currently has 80 treaty partners, including 41
bilateral Tax Information Exchange Agreements (TIEAs) and 76
co-signatories of the Council of Europe's Multilateral
Convention on Mutual Administrative Assistance in Tax Matters.
Bermuda has been on the OECD's "White List" since
2009 and its regulatory framework is constantly evolving to keep
ahead of the curve;
Bermuda's long standing commitment to global co-operation
and transparency has ensured that it is a well-respected
jurisdiction which aims to attract and maintain blue chip investors
The collaboration between industry, the regulator and the
Government ensures that Bermuda responds to market evolution in an
efficient, considered and well-regulated way;
All Bermuda taxes are jurisdiction based and exempted
undertakings can obtain a tax exemption certificate in respect
of certain taxes. Essentially, Bermuda is a low-tax
jurisdiction with a well-established tax regime;
Bermuda is a tried and tested jurisdiction with a legal system
which is based on the common law of England and Wales. Its legal
infrastructure is stable and has an excellent reputation
internationally, especially in respect of commercial matters.
As originally published on IFLR1000.com on 30 November, 2016. This article
is intended for informational purposes only and is not a substitute
for legal advice.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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It is now less than 50 days to the start of the 35th America's Cup in Bermuda, with Oracle Team USA defending its title against one of five challenger teams, Artemis Racing, Emirates Team New Zealand, Groupama Team France, Land Rover BAR and SoftBank Team Japan.
The United Kingdom and Chinese governments have signed an agreement on behalf of the Cayman Islands which bestows ‘Most Favoured Nation' status to Cayman Islands registered vessels entering Chinese ports.
Under Maltese law, an aircraft may constitute a security for a debt or other obligation either by agreement or by operation of the law, such as special privileges.
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