Very, very rich people have very very expensive toys. And when those toys are yachts and planes, they need a wide range of services.

High net worth individuals need someone to handle the financing of these assets, to pay their bills in marinas and yards, to handle charter or lease contracts, to organise crew payroll.

Malta has already done really well when it comes to encouraging yachts to take up the Maltese flag – and once the owners have that link with Malta, they soon realise how many other services they can entrust to local firms.

But when it comes to planes, Malta has been a bit slower to focus on what it could offer. But that is certainly changing.

Vistra, which is headquartered in Geneva, has 32 offices in 25 jurisdictions offering trust and corporate services. Four years ago it opened an office in Malta, taking over Grixti Chetcuti and IBSL, which had been around since 2001. It has already grown to 19 staff and last September, it moved its maritime and aviation section here – which until now had been in Jersey, the US – and has been taken aback by the positive response from clients.

Maltese financial institutions could put together purchase packages for aviation

“Malta is a very good jurisdiction and is very efficient. But until the government verbalised its commitment to the sector last summer, the momentum did not really start to pick up. But we are now already being approached by clients of the Vistra Group who want us to look after their yachts and planes and already two out of the 23 clients to whom we provide aviation services have registered their planes here,” Vistra maritime and aviation manager Geraldine Spiteri said.

Malta is competing with Hong Kong, which has built up quite a reputation for aviation, whether private or commercial. But the island has its unique selling points.

“The services in Malta are definitely not as expensive as in other jurisdictions. But that is not the only plus. We are also encouraging them by pointing out the beneficial Vat rate for leasing, which is similar to that for yachts. This allows them to pay a reduced rate by deferring the payment on the asset, paying a reduced rate on the lease, with an option to buy the asset at the end of the period,” she explained.

Another advantage is that when a plane’s mortgage is registered here, the legislation offers security for the debt – in essence meaning that in case of default, the plane could be seized and auctioned once the court confirms the debt, without the need for an arrest, as would be required in many other countries.

The way that the law defines the ‘place of supply’ also means that the lease contract has to start here. With yachts, this has offered a geographical advantage as many are manufactured in Mediterranean yards and visiting Malta is more convenient than going, say, to the UK.

It is also more convenient for clients themselves, Dr Spiteri stressed.

“Jersey is not the easiest place to get to. It takes them an entire day to get there whereas we have good direct connections in Malta to the main European cities,” she said.

Dr Spiteri joined Vistra in August 2013, having spent 11 years as a lawyer prior to that. A large part of her job at the moment is going to other Vistra offices explaining internally what Malta can offer and she has already been to Brussels, London, Amsterdam and Jersey.

“The relationship officers are passing on our messages and we are getting more and more enquiries about maritime and aviation services,” she said.

However, she believes that there is much more that could be done – if only service providers could better understand the requirements of high net worth individuals.

“Take superyachts. The yards do a great job for superyachts – but not for the really top-end ones. We are talking about people who spend €100,000 in a day.

“Malta has not got a name for itself as a ‘playground’ for the rich in the way that, for example, Monaco does. We have very good hotels and restaurants, casinos and so on. Wouldn’t it be great if we could build up a brand so that Malta would immediately spring to mind?”

Dr Spiteri had a number of specific suggestions on ways to tap into this sector. She believes that Mcast and the Nautical Institute (where she lectures in maritime legislation) could offer many more training and certification courses to international crew, building on what they already offer.

But other suggestions represent much more of a leap of faith.

“Maltese financial institutions could put together purchase packages for aviation. Do not underestimate the administrative burden of obtaining financing, especially when a jet is for personal use. There is a tremendous amount of risk and compliance regulation that has to be followed. We are talking about boxes and boxes of documentation, which owners need someone to look after.

“And every single piece of paper – and back-up copies – need to be kept while a plane remains functional. This is not a service that Vistra offers yet but it is certainly something we could do if the demand arises,” she said.

The actual financing of planes worth as much as €100 million could be somewhat trickier, but local banks might be interested in joining a syndicate, she said. Even if they do not opt for this route, banks could still attract considerably more business from high net worth individuals if they could speed up the review of wealth management clients’ documentation.

“It takes months – and this is not unique to Malta. So if we can offer a more efficient service, it would be a competitive advantage,” she said.