What Happens When a USD 100 Million Aircraft Lands in Turkey?

Assume that a Turkish airline purchases an Airbus A321neo or Boeing 737 MAX abroad.

The aircraft departs from Toulouse, Seattle, or another delivery location and lands in Istanbul.

What happens legally when the aircraft arrives in Turkey?

Importing an aircraft worth USD 80 million, USD 100 million, or even more is fundamentally different from importing ordinary commercial goods. An aircraft transaction may simultaneously involve customs law, tax law, civil aviation law, international sale or leasing law, and aircraft registration law.

More importantly, the physical arrival of the aircraft in Turkey does not necessarily mean that the aircraft has completed its legal importation process.

The applicable legal regime may depend on whether the aircraft:

• has been purchased or leased;
• is new or used;
• will remain on a foreign register;
• will be entered in the Turkish Civil Aircraft Registry;
• will be used for commercial passenger or cargo transportation; or
• will be used as a corporate or private business jet.

For this reason, customs and tax structuring should generally be considered before the Aircraft Purchase Agreement or Aircraft Lease Agreement is executed, rather than after the aircraft has already arrived in Turkey.

1. Arrival in Turkey Does Not Always Mean Permanent Importation

The first distinction is fundamental:

Is the aircraft being permanently imported into Turkey, or is it being brought into Turkey temporarily?

Under Turkish Customs Law No. 4458, the mere entry of goods into the Turkish Customs Territory is not identical to their release for free circulation.

Depending on the structure of the transaction, an aircraft may be placed under:

release for free circulation, or

subject to the applicable conditions,

temporary admission.

This distinction becomes particularly important in aircraft leasing transactions.

For example, a Turkish airline purchasing an Airbus A320 from an overseas seller and a Turkish airline leasing the same Airbus A320 from a foreign lessor for eight years do not necessarily create identical customs consequences.

However, an important misconception should be avoided:

There is no universal rule that every leased aircraft automatically qualifies for temporary admission.

The appropriate customs procedure must be determined by examining the ownership structure, intended use, lease term, available customs and tax exemptions, and the other legal characteristics of the transaction.

2. Permanent Importation of a Purchased Aircraft

Where a Turkish airline purchases an aircraft abroad and intends to operate it in Turkey on a permanent basis, release for free circulation will generally become one of the central elements of the import structure.

For example, a Turkish carrier may purchase a Boeing 787 from an overseas seller.

The transaction documentation may include:

• Aircraft Purchase Agreement;
• Bill of Sale;
• commercial invoice;
• aircraft technical records;
• export certificate;
• deregistration certificate;
• certificate of airworthiness or export certificate of airworthiness;
• insurance certificates; and
• Turkish DGCA conformity documentation.

The customs process cannot, however, be separated from the regulatory aviation process.

As of 2026, Turkey applies the Communiqué on the Importation of Civil Aircraft (Import: 2026/8). For civil aircraft falling within the relevant customs tariff classifications, a conformity letter issued by the Turkish Directorate General of Civil Aviation, or DGCA/SHGM, is required as part of the import process.

Aircraft importation is therefore not merely a customs declaration exercise.

It is also an aviation regulatory clearance process.

3. Can Used Airbus or Boeing Aircraft Be Imported into Turkey?

Yes, subject to the applicable import and aviation requirements.

A significant proportion of commercial aircraft transactions involve used rather than factory-new aircraft.

A Turkish operator may, for example, acquire a ten-year-old Airbus A330 or a seven-year-old Boeing 737-800.

Used aircraft transactions require an additional layer of regulatory and technical analysis.

For 2026, Turkey also applies the Communiqué on the Importation of Used or Refurbished Goods (Import: 2026/9). The DGCA conducts the relevant conformity procedures for civil aviation products within the applicable tariff categories.

For a used aircraft, legal and technical due diligence will typically review matters including:

• airframe cycles;
• total flight hours;
• engine cycles;
• LLP status;
• maintenance history;
• Airworthiness Directive compliance;
• accident and incident history;
• modification status; and
• completeness of technical records.

Accordingly, the importation of a used aircraft is materially more complex than an ordinary used-goods import transaction.

4. Temporary Admission of Leased Aircraft

Where legal title remains with a foreign lessor, the temporary admission regime should also be considered.

Temporary admission under Turkish customs law permits non-Turkish goods, subject to applicable conditions, to be used within the Turkish Customs Territory and subsequently re-exported.

The regime may operate with:

• total relief from import duties; or
• partial relief from import duties.

The Turkish Ministry of Trade confirms that both structures exist under the Turkish temporary admission regime.

However, a leased aircraft should not automatically be assumed to qualify for temporary admission with total relief.

Whether total relief is available must be determined on the basis of the applicable statutory conditions and the specific transaction.

Where the requirements for total relief are not met, certain goods owned by persons established outside the Turkish Customs Territory may potentially qualify for temporary admission with partial relief.

5. What Does the “3% Per Month” Rule Mean?

One of the most commercially significant features of temporary admission with partial relief is the monthly tax mechanism.

Under the Turkish system, import duties payable for each month under partial relief are calculated at 3% of the import duties that would have been payable if the goods had been released for free circulation on the date of registration of the temporary admission declaration.

A fraction of a month is treated as a full month.

The aggregate amount of duties collected cannot, excluding applicable interest, exceed the amount that would originally have been payable upon release for free circulation.

This rule can be highly relevant in aircraft leasing.

However, the 3% figure does not mean 3% of the market value of the aircraft.

For example, the fact that an aircraft is worth USD 100 million does not mean that USD 3 million must automatically be paid every month.

The calculation is based on the amount of import duties that would otherwise have been payable, not directly on the aircraft’s market value.

The applicable tariff classification, origin, customs value, and available exemptions must therefore first be determined.

6. Is VAT Payable on Aircraft Importation into Turkey?

VAT is often one of the most economically significant issues in an aircraft import transaction.

As a general rule, the importation of goods into Turkey is subject to VAT.

However, Turkish VAT legislation contains a particularly important exemption applicable to certain aircraft transactions.

Under Article 13(a) of Turkish VAT Law No. 3065, supplies of aircraft made for qualifying purposes to taxpayers whose activities consist wholly or partly of leasing or otherwise operating aircraft may be exempt from VAT.

Article 16(1)(a) further provides that the importation of goods whose domestic supply is exempt from VAT is likewise exempt from import VAT.

The Turkish Revenue Administration’s published guidance confirms that where the conditions for the Article 13(a) exemption are satisfied, the corresponding aircraft import may also qualify for VAT exemption. The applicable exemption documentation must be presented to the customs authority.

For commercial airlines, this can have extremely significant financing implications.

7. Does Every Aircraft Qualify for the VAT Exemption?

No.

This is one of the most important distinctions in Turkish aircraft tax planning.

The exemption does not apply merely because the imported asset happens to be an aircraft.

The activities of the taxpayer acquiring or importing the aircraft and the purpose for which the aircraft will be used are also relevant.

The exemption may apply where the taxpayer is genuinely engaged in leasing or operating qualifying aircraft and acquires the aircraft for that business activity.

The position may be materially different where a company purchases a corporate jet primarily to transport its shareholders, directors, or executives.

The Turkish Revenue Administration has taken the position that aircraft acquired for private or internal corporate use outside the qualifying aircraft leasing or operating activity do not automatically benefit from the Article 13(a) exemption.

Consider two examples.

Scenario A

A Turkish airline acquires an Airbus A320neo with 180 seats for scheduled commercial passenger services.

Scenario B

A holding company acquires a Gulfstream or Bombardier business jet primarily for executive travel.

Both transactions involve the importation of an aircraft.

Their VAT treatment, however, may be fundamentally different.

This is why tax structuring should be completed before signing the purchase documentation.

8. Can the VAT Exemption Be Lost Later?

Potentially, yes.

This is a significant compliance risk.

Turkish VAT guidance provides that where an aircraft has been imported free of VAT pursuant to Articles 13(a) and 16(1)(a), but it is subsequently determined that the aircraft was not used in the qualifying commercial activity required for the exemption, the tax arising from the loss of the exemption conditions may be collected by the relevant customs authority.

The exemption should therefore not be viewed merely as a benefit obtained on the date of importation.

The subsequent operational use of the aircraft can remain legally relevant.

Changes to aircraft ownership, operation, or business use should therefore be reviewed for their potential Turkish VAT consequences.

9. What Customs Duty Rate Applies to Aircraft?

There is no responsible single percentage that can be stated for every aircraft import transaction.

The applicable customs treatment must be determined by reference to matters including:

• the relevant GTIP/customs tariff classification;
• technical characteristics of the aircraft;
• country of origin;
• preferential origin;
• the current Import Regime Decision;
• any applicable additional customs duties;
• international trade arrangements; and
• exemptions or reliefs available for the transaction.

Turkey’s current Import Regime and Additional Customs Duty rules apply through tariff-based schedules that are updated over time. Accordingly, high-value aircraft acquisitions require a transaction-specific tariff review rather than a broad assumption that all civil aircraft are automatically subject to a particular rate.

For an aircraft worth USD 100 million, even a relatively small error in tariff classification or customs valuation can have substantial economic consequences.

10. How Is the Customs Value of an Aircraft Determined?

For a purchased aircraft, the purchase price will often be an important starting point.

However, customs value does not simply mean whatever figure appears on an invoice.

Under Turkish customs legislation, customs value is determined through a hierarchy of valuation methods.

These include:

1. transaction value;
2. transaction value of identical goods;
3. transaction value of similar goods;
4. deductive value;
5. computed value; and
6. the fallback method.

The Turkish Ministry of Trade confirms that these valuation methods must generally be considered sequentially.

A leasing transaction presents additional issues because there may be no conventional sale for export to Turkey.

Accordingly, customs valuation of a leased aircraft should not automatically be calculated simply by multiplying monthly rent by the lease term.

The appropriate valuation methodology must be identified under the Turkish customs valuation rules by reference to the specific structure.

This becomes particularly relevant in:

• operating leases;
• finance leases;
• sale-and-leaseback transactions; and
• related-party SPV structures.

11. Can the Aircraft Remain Foreign-Registered?

The entry of an aircraft into Turkish territory and the registration nationality of that aircraft are separate legal questions.

A foreign-registered aircraft may of course arrive in Turkey in the course of international operations.

However, where an aircraft is to be placed on the fleet of a Turkish operator on a long-term basis and entered in the Turkish Civil Aircraft Registry, additional rules apply.

Under the DGCA registration practice, an aircraft previously registered in another jurisdiction must generally provide evidence that its previous registration has been cancelled before it can be entered in the Turkish Civil Aircraft Registry.

A deregistration certificate from the previous aviation authority therefore becomes a key transaction document.

The aircraft’s customs status and its nationality/registration status must therefore be analyzed separately.

This distinction is particularly important in international aircraft leasing.

12. Can a Foreign-Owned Aircraft Be Registered in Turkey?

Yes, in appropriate circumstances.

Turkish aviation legislation permits certain foreign-owned aircraft operated by Turkish operators to be temporarily entered into the Turkish Civil Aircraft Registry.

Under the Turkish civil aviation framework and published DGCA procedures, an aircraft lawfully brought into Turkey and placed exclusively at the disposal of qualifying Turkish persons or entities for operation on their behalf for at least six months may potentially be temporarily registered in Turkey.

This mechanism is particularly relevant to cross-border aircraft leasing.

The foreign lessor may therefore retain legal title while the Turkish airline operates the aircraft under Turkish registration, subject to the applicable requirements.

13. How Does the Purchased Aircraft Physically Reach Turkey? Ferry Flights

There is often an operational gap between the legal acquisition of the aircraft and completion of its final Turkish registration.

A ferry flight may be used during this period.

The Turkish DGCA has a specific procedure for aircraft brought into Turkey following a purchase or lease before final registration formalities have been completed.

An aircraft intended for entry into the Turkish Civil Aircraft Registry may, depending on the structure, arrive using a reserved Turkish registration mark or the registration of its state of departure.

Where the ferry flight is conducted under a Turkish registration mark, a temporary registration certificate may be required.

Documents may include:

• deregistration certificate;
• export certificate;
• aircraft flight manual page showing MTOW; and
• insurance covering the ferry flight.

“Delivery” in an aircraft purchase agreement is therefore not merely a contractual moment.

The physical delivery and ferry flight must also be integrated into the legal closing plan.

14. Purchased Aircraft vs Leased Aircraft: The Customs Difference

The basic commercial distinction can be illustrated as follows.

Purchased Aircraft

Legal ownership transfers to the Turkish buyer.

A Bill of Sale is executed.

Where the aircraft will be permanently operated in Turkey, release for free circulation and Turkish registration will generally form important parts of the structure.

Leased Aircraft

Legal title may remain with the foreign lessor.

The Turkish airline obtains possession and operating rights.

The aircraft is normally returned to the lessor upon expiry of an operating lease.

Temporary admission or another appropriate customs structure therefore requires separate consideration.

The customs analysis, however, should never be based exclusively on the fact that the contract is labelled a “Lease Agreement.”

15. What Happens When the Lease Ends?

At the end of an operating lease, the aircraft will ordinarily be redelivered to the lessor.

From a Turkish legal perspective, this may involve much more than termination of the lease agreement.

The transaction may require coordination of:

• removal from the Turkish operator’s fleet;
• deregistration;
• IDERA-related steps where relevant;
• discharge of the customs procedure;
• re-export;
• release of customs guarantees;
• tax clearance; and
• export or ferry flight documentation.

Failure to re-export an aircraft held under temporary admission within the permitted period, or to place it under another customs-approved treatment or use, may create customs duty and administrative penalty exposure.

The Ministry of Trade states that failures concerning the timely discharge of temporary admission may trigger sanctions under Articles 238 or 241 of the Turkish Customs Law and, where applicable, collection of customs duties.

The contractual redelivery date is therefore also an important customs-compliance date.

16. The Most Common Legal Mistake: Structuring Customs After Signing the Deal

One of the most expensive mistakes in an international aircraft transaction is to sign the purchase or lease documentation first and investigate Turkish customs and tax consequences afterwards.

Before closing, the parties should determine questions such as:

What is the correct GTIP classification of the aircraft?

Is the aircraft new or used for import-control purposes?

Is DGCA technical import conformity required?

Will the aircraft be released for free circulation or placed under temporary admission?

Can the transaction qualify for the VAT exemptions under Articles 13(a) and 16(1)(a)?

Has the necessary VAT exemption documentation been obtained?

How will customs value be determined?

Does the aircraft lease agreement comply with Turkish customs and aviation requirements?

When will the previous registration be cancelled?

Under which registration will the delivery or ferry flight take place?

How will the customs procedure be discharged when the lease ends?

These questions should be answered before closing, not after the aircraft has arrived.

Conclusion: Aircraft Importation Is Really a Transaction-Structuring Exercise

Bringing an Airbus, Boeing, Gulfstream, Bombardier, or other aircraft into Turkey is not an ordinary import procedure completed merely by filing a customs declaration.

A properly structured aircraft acquisition or leasing transaction requires coordination of:

the purchase or lease agreement + customs regime + tax planning + DGCA approval + aircraft registration + airworthiness + insurance + delivery + eventual re-export or redelivery.

VAT structuring can be particularly important.

An aircraft imported by a commercial airline for qualifying aircraft operations may have a very different VAT profile from a business jet acquired by a holding company primarily for executive transportation.

Likewise, the fact that an aircraft is leased from a foreign lessor does not automatically mean that it can be brought into Turkey under a tax-free temporary admission structure.

Total relief, partial relief, release for free circulation, VAT exemption, customs valuation, registration, and DGCA requirements must all be examined on the facts of the particular transaction.

For a high-value aircraft deal, therefore, the right time to conduct the Turkish legal analysis is not the day the aircraft lands at Istanbul Airport.

It is before the Aircraft Purchase Agreement or Aircraft Lease Agreement is signed.

On an aircraft worth USD 100 million, a few contractual provisions — or the wrong customs structure — may change the economics of the transaction by millions of dollars.