When Buying a Private Jet, the First Question Should Not Be “Which Aircraft?” but “Who Will Own It?”

When an entrepreneur, investor or corporation decides to acquire a Gulfstream, Bombardier Global, Dassault Falcon, Embraer Praetor or another business jet, the first considerations usually appear to be range, cabin size, operating performance and acquisition price.

From a legal perspective, however, a much more important question comes first:

Who will legally own the aircraft?

Will the aircraft be purchased directly by an individual?

Will it be acquired by an existing Turkish company?

Should a separate company be established solely to hold the aircraft?

Should a foreign Special Purpose Vehicle (“SPV”) be incorporated to own it?

Should the aircraft be registered in Türkiye or under a foreign aircraft registry?

Will the aircraft be used exclusively by its owner, or will it be placed into charter operations during periods when the owner is not using it?

Each of these decisions may produce different consequences in relation to registration, taxation, customs, financing, insurance, operational licensing, third-party liability and even the future resale of the aircraft.

A business jet acquisition should therefore not be viewed merely as the purchase of an expensive asset.

It is fundamentally an aircraft ownership and operating structure.

1. Can an Individual Own a Business Jet in Türkiye?

Turkish law does not generally prohibit individuals from owning civil aircraft.

Under Turkish Civil Aviation Law No. 2920, aircraft owned by Turkish citizens may qualify as Turkish civil aircraft. Article 49 further regulates the circumstances in which aircraft owned by certain legal entities established under Turkish law may qualify as Turkish civil aircraft. In relation to commercial companies, the legislation contains requirements relating to Turkish control of voting rights and the nationality of persons authorised to manage and represent the company.

A Turkish citizen may therefore, subject to the applicable registration and aviation requirements, acquire and register a business jet personally.

However, the fact that direct personal ownership is legally possible does not mean that it will always be the most suitable structure.

Placing a USD 20–30 million aircraft directly into an individual’s personal estate may have implications for:

inheritance,

matrimonial property,

personal creditors,

attachments,

asset protection,

financing,

future sale, and

privacy.

For this reason, separate aircraft-owning companies are frequently used in international business aviation.

2. Is Corporate Ownership More Efficient?

Corporate ownership can provide a more structured approach where the aircraft is genuinely used for business purposes.

A Turkish holding company or operating company may, for example, acquire a business jet for executives who regularly travel between factories, investment projects, clients and international business meetings.

The aircraft may then form part of the company’s assets, while costs such as pilots, maintenance, insurance, hangar, fuel and handling are paid by the company.

There is, however, an important tax issue:

Registration of an aircraft in the name of a company does not automatically make every aircraft-related expense tax deductible.

Under the general approach reflected in Turkish tax legislation and Revenue Administration practice, deductible business expenses must have a sufficiently direct connection with the generation or maintenance of commercial income.

An aircraft used to transport executives to international negotiations or project locations therefore presents a different tax analysis from an aircraft predominantly used by a shareholder for private family holidays.

Where corporate and personal use are mixed, careful records and tax analysis become particularly important.

3. What Is an Aircraft SPV?

One of the most common ownership structures in international business aviation is the Aircraft Special Purpose Vehicle (“Aircraft SPV”).

Under this structure, a separate legal entity is established primarily or exclusively to own the aircraft.

A simplified structure may look like this:

Ultimate Owner → Aircraft SPV → Business Jet → Aircraft Management Company / Operator

The SPV may conduct very little day-to-day commercial activity other than holding the aircraft.

One of the principal objectives is asset segregation.

If a large trading company directly owns the aircraft, the aircraft sits within the same legal entity that may also have commercial liabilities arising from its primary business.

Placing the aircraft in a separate SPV may, depending on the structure, separate at least some of these risks.

An SPV may also provide flexibility in connection with:

aircraft financing,

mortgages,

leasing,

future disposal,

changes in ownership, and

succession planning.

However, one misconception should be addressed immediately:

A foreign aircraft SPV does not automatically create a tax-free aircraft structure.

4. Does an Offshore SPV Eliminate Turkish Taxes?

A dangerous assumption occasionally encountered in business aviation is:

“If the aircraft is owned by a foreign company, Turkish tax will no longer be relevant.”

That conclusion is generally too simplistic.

Tax and customs consequences cannot be determined solely by looking at the flag painted on the aircraft or the jurisdiction in which the owner company was incorporated.

Questions that may become relevant include:

Where is the aircraft principally based?

How frequently and for how long is it present in Türkiye?

Who actually uses the aircraft?

Who operates it?

Where is the SPV effectively managed?

Under which customs procedure is the aircraft brought into Türkiye?

Does a Turkish company pay rent or management fees to the foreign SPV?

Is the aircraft genuinely used in commercial operations or predominantly for private purposes?

Consequently, a foreign SPV may provide legitimate financing, asset-holding and organisational advantages, but it does not by itself disapply Turkish aviation, tax or customs law.

Foreign-registered aircraft that are heavily used or based in Türkiye require particularly careful customs and operational analysis.

5. Which Aircraft Registry Should Be Chosen?

The choice of registration jurisdiction is one of the most significant decisions in a business jet acquisition.

Aircraft entered in the Turkish Civil Aircraft Registry carry Turkish registration marks beginning with “TC-”.

For registration in Türkiye, an aircraft must not remain registered in another state. Where it has previously been registered abroad, appropriate evidence of deregistration must be provided. This requirement is reflected in DGCA registration procedures.

Aircraft nationality and registration marks are further regulated under SHY-7, which was most recently amended on 3 July 2026.

Foreign aircraft registries are also widely used in international business aviation.

However, choosing a registry simply because it is perceived as prestigious or administratively convenient can be a mistake.

The analysis should include:

owner eligibility, operating base, operator location, crew licensing, maintenance recognition, financing requirements, lender preferences, aircraft mortgage rules, insurance requirements, tax and customs treatment, resale market and deregistration procedures.

A poorly selected registry can create difficulties years later when the owner attempts to refinance or sell the aircraft.

6. Can a Foreign-Owned Business Jet Be Registered or Operated Under a Turkish Structure?

Not every foreign ownership structure is eligible for ordinary permanent Turkish registration.

However, Article 55 of Turkish Civil Aviation Law provides a temporary registration mechanism where an aircraft lawfully brought into Türkiye is made available for at least six months to the Turkish State, a Turkish public entity, Turkish citizen or qualifying legal entity for operation exclusively on its behalf.

DGCA practice also distinguishes between the owner and the operator of an aircraft and recognises structures in which a foreign owner and Turkish operator may coexist subject to the applicable requirements.

Therefore, when a foreign SPV is contemplated, the ownership structure cannot be designed independently from the aircraft’s operating and registration structure.

7. The Critical Boundary Between Private Use and Commercial Charter

One of the most common questions asked by private jet owners is:

“Can I charter the aircraft when I am not using it and offset some of the operating costs?”

Commercially, the idea is attractive.

Legally, it requires careful structuring.

Article 18 of Turkish Civil Aviation Law subjects commercial carriage of passengers or cargo by aircraft for remuneration to an authorisation regime. Certain commercial air transport operations additionally require an operating licence.

According to the Turkish Directorate General of Civil Aviation, commercial air transportation with Turkish-registered aircraft having up to 19 passenger seats falls within the category of air taxi operations.

Accordingly, an aircraft owner cannot simply decide:

“I am not using the jet this week, so I will invoice another company and fly its passengers.”

Commercial charter operations must be conducted through an appropriately licensed and authorised operator and in compliance with the applicable AOC and operational framework.

8. Why Is an Aircraft Management Agreement Important?

Many private jet owners outsource day-to-day aircraft operations to a professional aircraft management company.

This relationship should be documented through a comprehensive Aircraft Management Agreement.

Among other matters, the agreement should clarify:

who employs the pilots,

crew scheduling,

maintenance responsibility,

insurance,

hangar arrangements,

fuel procurement,

navigation charges,

management fees,

maintenance approvals,

charter revenue,

owner flight priority,

damage liability,

insurance deductibles,

aircraft records, and

audit rights.

Where the aircraft is used both for owner flights and third-party charter, the distinction between private and commercial flights should also be clearly documented.

9. The Real Cost of a Private Jet Is Not Its Purchase Price

The purchase price represents only one component of aircraft ownership.

A business jet owner may also incur substantial recurring expenditure for:

crew salaries,

pilot training,

insurance,

scheduled maintenance,

unscheduled maintenance,

engine reserves,

APU reserves,

hangar,

navigation charges,

landing fees,

handling,

fuel,

management fees,

subscriptions,

catering, and

international permits.

Heavy maintenance checks and major engine events may also produce substantial periodic cash requirements.

Accordingly, prospective owners should prepare not only an acquisition budget, but also a multi-year operating-cost model before purchasing the aircraft.

10. Turkish Motor Vehicle Tax on Aircraft

Aircraft and helicopters registered with the Turkish Directorate General of Civil Aviation are subject to Turkish Motor Vehicle Tax (“MTV”).

Under Motor Vehicle Tax Law No. 197, aircraft and helicopters are taxed under Tariff IV.

For 2026, the amount is calculated according to the aircraft’s maximum take-off weight and age.

For aircraft between one and three years old, the annual 2026 amounts range from TRY 116,300 to TRY 465,454, depending on weight. Aircraft with a maximum take-off weight of 20,001 kilograms or more within this age group fall within the TRY 465,454 category.

Compared with the overall annual cost of operating a large business jet, MTV may not be the largest expense, but it remains part of the ownership-cost analysis.

11. VAT and Special Consumption Tax on Aircraft Acquisition

VAT is one of the most important tax issues when acquiring a business jet in Türkiye.

Article 13/a of the Turkish VAT Law provides an exemption, subject to its statutory requirements, for certain deliveries of aircraft to taxpayers whose activities consist wholly or partly of leasing or otherwise operating aircraft.

The exemption does not automatically apply merely because the purchaser is a company.

In one Revenue Administration ruling, an aircraft purchased by an engineering business for use in its own engineering activities was held not to qualify for the Article 13/a exemption because the company’s activities did not consist of leasing or operating aircraft within the scope of the exemption.

This distinction is critical.

A holding company purchasing a jet primarily to transport its executives may therefore present a materially different VAT profile from an aviation business acquiring an aircraft for qualifying aircraft-operation activities.

Aircraft and helicopters also fall within List II attached to the Turkish Special Consumption Tax Law. The current published list states a 0.5% SCT rate for qualifying aircraft and helicopters under tariff heading 88.02, subject to the scope and exceptions specified in the legislation.

The final tax treatment must nevertheless be analysed together with the import structure, first acquisition, VAT status and customs procedure applicable to the particular transaction.

12. Why Personal Use of a Corporate Jet Can Create Tax Risk

A company may legitimately own a business jet.

However, problems can arise where use of the aircraft becomes detached from the company’s commercial activities.

Consider the difference between:

a CEO flying from Istanbul to London for acquisition negotiations, and

the same shareholder using the aircraft to transport family members to a holiday destination.

Those flights do not necessarily have the same tax character.

Turkish tax principles generally require a direct relationship between deductible expenditure and the generation or preservation of commercial income.

For this reason, corporate jet operators should consider maintaining clear records distinguishing:

business use from personal use.

Passenger manifests, flight-purpose records, meeting documentation and an internal aircraft-use policy may become important evidence in a future tax review.

13. Aircraft Financing, Mortgages and the Cape Town System

Many business jets are not acquired entirely with cash.

Owners may use:

aircraft loans,

leasing,

asset-backed financing, or

other structured finance arrangements.

A financing institution may require an aircraft mortgage, assignment of insurance proceeds, share pledge, account security and corporate or personal guarantees.

Türkiye is also a contracting state to the Cape Town Convention framework, which is particularly significant in the financing of high-value aircraft assets.

Accordingly, a financed transaction may require analysis not only of the Aircraft Purchase Agreement but also of:

Aircraft Mortgages, Security Agreements, Assignments of Insurance, IDERA and International Registry filings.

The ownership structure should therefore be designed with the lender’s security requirements in mind before the acquisition is completed.

14. Asset Protection: Does an SPV Really Protect the Aircraft?

One of the purposes of an aircraft SPV is risk segregation.

However, incorporating an SPV does not create absolute protection.

Liabilities incurred by the SPV itself, aircraft mortgages, certain liens, tax liabilities or other proprietary claims may still directly affect the aircraft.

Similarly, if the ultimate owner provides extensive personal guarantees, the economic benefit of limited liability can be significantly reduced.

Effective asset protection therefore requires a combination of:

corporate structure + contractual structure + financing documentation + insurance.

It should not be treated merely as a company-incorporation exercise.

15. Selling the Aircraft or Selling the SPV?

An aircraft SPV can also create additional structuring options at the time of exit.

Rather than selling the aircraft itself, an owner may consider selling the shares of the company that owns the aircraft.

However:

a share sale and an aircraft sale are legally different transactions.

A share sale may trigger issues relating to:

change-of-control clauses,

financing agreements,

aircraft management contracts,

beneficial ownership disclosure,

sanctions and AML compliance,

taxation, and

registry requirements.

Using a share transaction therefore does not automatically eliminate all tax, regulatory or aviation-law consequences associated with a change in aircraft ownership.

16. Ten Questions to Answer Before Buying a Business Jet

Before acquiring a private aircraft, a company or individual should be able to answer at least the following questions:

1. Who will be the legal owner of the aircraft?
2. Should the owner be an individual, existing operating company or dedicated aircraft SPV?
3. Should the SPV be incorporated in Türkiye or abroad?
4. Which aircraft registry will be used?
5. Where will the aircraft principally be based and operated?
6. Will the aircraft be exclusively for private use?
7. Will third-party charter operations be permitted?
8. Who will act as aircraft manager and AOC operator?
9. What are the VAT, SCT, MTV and customs consequences?
10. How will financing, mortgage, insurance and the eventual exit be structured?

Finding the right aircraft without answering these questions is not enough to create a secure aircraft acquisition.

Conclusion: Buying a Business Jet Is Not Merely a Luxury Purchase — It Is an International Legal Structuring Exercise

From the outside, acquiring a private aircraft may appear straightforward:

choose an aircraft, pay the purchase price and start flying.

In reality, the safer sequence is usually:

Ownership Structure → Tax Analysis → Registry Selection → Legal Due Diligence → Purchase Agreement → Financing → Insurance → Operator Structure → Closing → Registration → Operation.

One of the most expensive mistakes is to buy the aircraft first and determine the ownership, registration and tax structure afterwards.

The identity of the legal owner is not an insignificant detail that can always be changed later without consequence. A later restructuring may trigger another ownership transfer, tax consequences, registration requirements, lender approvals and additional transaction costs.

Likewise, establishing a foreign SPV or selecting a foreign registry does not by itself make the aircraft exempt from Turkish taxation, customs rules or aviation regulation where the aircraft remains economically and operationally connected with Türkiye.

Corporate ownership also requires a genuine distinction between business and personal use, while placing a private jet into third-party charter operations requires compliance with commercial aviation licensing and operational rules.

For high-value Gulfstream, Bombardier, Falcon, Embraer and similar business jet acquisitions, the ownership structure should therefore be designed before closing through coordinated advice involving an aviation lawyer, tax adviser, aircraft technical consultant, insurance broker, aircraft manager and, where financing is involved, aviation finance counsel.

The decisive question is therefore not simply:

“Which business jet should I buy?”

It is:

“Through which legal structure should I own and operate it?”

A properly designed aircraft ownership structure does more than facilitate the acquisition of a multimillion-dollar asset. It determines how that asset can be operated, financed, protected and ultimately sold.