Milestone is a boutique international tax practice established in Mayfair, London.


Jets and ‘jouissance’ rights?

The Client

Commercial Jet Leasing Company

The Problem

Our client wanted to acquire a jet and lease it commercially in Latin America, repatriating the profits in their LATAM jurisdiction. They asked us to help structure the transaction efficiently.

The Solution

  • Our proposed structure required the owner of the aircraft to contribute the aircraft to an EU incorporated company in return for a jouissance right for up to 95% of the profit.
  • While leasing income was liable to 25% corporate income tax in the EU jurisdiction, the jouissance right (structured as a debt instrument) allowed the interest payable to be tax deductible leaving a nominal amount subject to tax.
  • Our client’s interest was not taxable on repatriation under the relevant double tax agreement.