The private aircraft leasing scheme aims in offering tax incentives as well as VAT savings to proposed investors (the “Scheme”). The Scheme is introduced by the Cyprus Tax Authorities as an attempt to view Cyprus as one of the most attractive jurisdictions in the European Union.
THE SCHEME
The Scheme requires a lease agreement of a private aircraft between:
- a Cyprus company registered with the Cyprus VAT Authorities as the Lessor; and
- the Lessee, who can be either a physical or a legal person, having its permanent or ordinary residence in Cyprus and not engaged in any business activity.