1.1 Sales Agreements
1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement There are no taxes or duties payable as a consequence of the execution of an aircraft or engine sale agreement (including for the sale of an ownership interest in an entity) where the asset is either located physically in the British Virgin Islands (“BVI”) or owned by a domestic party.
1.1.2 Enforceability Against Domestic Parties
It is not necessary for a sale agreement to be translated, certified, notarised or legalised in order to be enforceable against a domestic party.
1.2 Transfer of Ownership
1.2.1 Transferring Title
There is no BVI legislation that constitutes transferring title to an aircraft or engine. Title is transferred by a bill of sale, which can extend to include all installed parts, like an APU. The sale of the ownership interest in an entity that owns an aircraft or engine is effectively recognised as the sale of such aircraft or engine itself.
1.2.2 Sales Governed by English or New York Law
The transfer of title to an aircraft or engine physically delivered in the BVI would be recognised if the bill of sale is governed by either English or New York law. There are no minimum substantive requirements that must be satisfied in order for such bill of sale to be recognised in the BVI.
1.2.3 Enforceability Against Domestic Parties
A bill of sale does not need to be translated, certified, notarised or legalised in order to be enforceable against a domestic party. 1.2.4 Registration, Filing and/or Consent from, Government Entities A bill of sale does not need to be registered or filed, and does not require consent from any government entity. Furthermore, no government applications or consents are required as a prerequisite to the execution and delivery of a bill of sale in relation to an aircraft or engine registered in the BVI.
1.2.5 Taxes/Duties Payable upon Execution of a Bill of Sale
There are no taxes or duties payable for executing and/or delivering a bill of sale, or for consummating the sale of the ownership interest in an entity that owns an aircraft or engine, including where title to such aircraft or engine is transferred while it is (a) located in the BVI, (b) over international waters or (c) in transit to/from the BVI.
This article was first published in Chambers and Partners.