Alien owning N reg aircraft
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Join Date: Apr 2002
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Alien owning N reg aircraft
I've posted the same thread in the North America forum, but maybe it's more suited in this one. Mods feel free to adjust accordingly!
I am just about to embark on the exciting adventure of becoming a pilot! Although I've been in the aviation game for some 24 years in maintenance.
I am a British licensed aircraft engineer with EASA licenses and also the holder of an FAA A&P. I am an overseas station engineer for a UK charter outfit based in the Dominican Republic. I also live here with my Dad, who is a retired flight engineer with FAA CPL/IR.
The plan is to go to Florida this fall and do the accelerated private pilot course over a month. My Dad will be refreshing his license too.
The next plan is to buy a C172 in the States and bring it down to the DR. We want to keep it on the N reg as we will both have FAA licenses and obviously I can maintain it with my A&P. Although I don't hold AI, we'll probably hop over to Puerto Rico every year for it's annual. But we really want to avoid importing it to the DR and putting it on the Dominican register.
So the question is; how can two Brits legally own and operate this Cessna on the N reg in the Dominican Republic?
I am just about to embark on the exciting adventure of becoming a pilot! Although I've been in the aviation game for some 24 years in maintenance.
I am a British licensed aircraft engineer with EASA licenses and also the holder of an FAA A&P. I am an overseas station engineer for a UK charter outfit based in the Dominican Republic. I also live here with my Dad, who is a retired flight engineer with FAA CPL/IR.
The plan is to go to Florida this fall and do the accelerated private pilot course over a month. My Dad will be refreshing his license too.
The next plan is to buy a C172 in the States and bring it down to the DR. We want to keep it on the N reg as we will both have FAA licenses and obviously I can maintain it with my A&P. Although I don't hold AI, we'll probably hop over to Puerto Rico every year for it's annual. But we really want to avoid importing it to the DR and putting it on the Dominican register.
So the question is; how can two Brits legally own and operate this Cessna on the N reg in the Dominican Republic?
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You can't. Not directly. N-regs can only be owned by people or corporations that are legal residents of the US. Or something like that.
The solution to this is to establish a US trust. This then legally owns the aircraft, but as part of the trusts regulations you are the beneficiary.
Amongst others on here, IO540 operates an aircraft under these conditions. If he doesn't step in all by himself, you might want to send him a PM. Or simply:
Let me google that for you
The other things, obviously, is that you need FAA licenses, including current BFRs and medicals. But you seem to be well informed on that front.
Bear in mind that "importing" and "putting it on the DR register" are two totally different things. Depending on the exact regulations, even if you leave the aircraft on the N-register, you might still be liable for import duty/VAT in the DR. In order to avoid import duty/VAT you typically have to take the aircraft outside the country for X months during a year.
The solution to this is to establish a US trust. This then legally owns the aircraft, but as part of the trusts regulations you are the beneficiary.
Amongst others on here, IO540 operates an aircraft under these conditions. If he doesn't step in all by himself, you might want to send him a PM. Or simply:
Let me google that for you
The other things, obviously, is that you need FAA licenses, including current BFRs and medicals. But you seem to be well informed on that front.
But we really want to avoid importing it to the DR and putting it on the Dominican register.
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Yes, as BP says above, you need a trust. Several hundred UK pilots use this firm which offers reasonable value for money.
No idea on import duties or other taxes in the DR. I would ask another foreign-reg pilot you see hanging around and find out what he did. I dare say paying off some official is the standard way things are done down there
The world is full of N-reg planes... only a few countries ban long term foreign reg parking outright.
No idea on import duties or other taxes in the DR. I would ask another foreign-reg pilot you see hanging around and find out what he did. I dare say paying off some official is the standard way things are done down there
The world is full of N-reg planes... only a few countries ban long term foreign reg parking outright.
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Since the death of Warren, SAC does not accept new aircraft trust agreements.
SAC would not be a logical choice anyway for someone in the DR, but I am sure that there are many alternatives to choose from.
SAC would not be a logical choice anyway for someone in the DR, but I am sure that there are many alternatives to choose from.
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I work in L.A. on an H1B visa and use International Air Services . I'm very satisfied with the cost and service and would certainly recommend them.
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That company has very interesting explanations on their site, of their trusts. For example, the beneficial owner is able to unilaterally terminate the trust. Normally, this is not possible - in effect, a normal trustee can (if he wanted to) stop you selling the aircraft on - and I wonder how they make that work.
