Aviation & Leasing
Ireland has become one of the world’s major centres for cross-border leasing. This is demonstrated by the number of international leasing companies from virtually every major trading nation that have established operations in Ireland.
Ireland offers very significant advantages to leasing operations, including:
- A 12.5% corporation tax regime for Irish trading companies
- An annual tax depreciation rate of 12.5% irrespective of the economic life of the asset
- A wide tax treaty network (currently 46 treaties with more under negotiation)
- No withholding tax on lease payments out of Ireland
- Withholding tax exemptions for interest and dividends paid to EU and treaty countries
- No Controlled Foreign Company (CFC) rules
- An attractive securitisation regime for lease receivables
- For international aircraft leasing, a stamp duty exemption is available on the lease, transfer and sale of aircraft. In addition, no value added tax (VAT) applies on lease rentals, with full VAT recovery on costs related to the aircraft leasing business