Italy remains a key jurisdiction for aviation finance, demanding compliance with specific legal and regulatory procedures. ENAC, the Italian civil aviation authority, manages technical regulation and aircraft oversight, with the Registro Aeronautico Nazionale (RAN) serving as the official registry for aircraft registration and ownership. Aircraft registration requires meeting nationality criteria, with ownership primarily held by Italian or EU entities, citizens, or companies meeting specific shareholding thresholds. Responsibility for registration lies with the aircraft owner, but legal counsel often handle this process.
Aircraft deregistration is mandated upon loss, resale to non-European owners, or when ownership criteria are no longer met. Mortgages on aircraft can be registered with the RAN and enforced in Italy; however, mortgages registered abroad lack recognition. While Italy has signed but not ratified the Cape Town Convention, mechanisms such as IDERA are not yet enforceable domestically. Aircraft leasing is explicitly allowed, with registration mandatory for lease agreements exceeding six months. Lease payments might attract withholding taxes, and imported aircraft may face customs duties and VAT, especially if registered outside the EU.
The transfer of aircraft ownership is permissible irrespective of the aircraft's location, provided appropriate legal formalities are fulfilled. Wet leasing is regulated depending on the lessor's nationality and registration status, with specific approval requirements for non-EU lessors and longer-term leases. Subleasing is permitted with the lessor’s consent, subject to registration rules. In cases of lessee insolvency, lessors may pursue aircraft repossession through judicial proceedings. Aircraft must be insured according to Italian law, and operators are subject to operational restrictions, including EU-ETS regulations. Due diligence before leasing includes verifying aircraft registration, operator credentials, financial status, and compliance with sanctions.
