FAA Registration for Foreign Owners

The Federal Aviation Administration (FAA) requires that aircraft registered in the United States be owned by US citizens, US permanent residents, or qualifying entities organized under US law. Foreign nationals cannot directly register aircraft with the FAA but can achieve registration through approved structures.

The most common approaches are owner trusts with a US citizen trustee, US-incorporated entities with appropriate ownership structures, and voting trust arrangements. Each has specific requirements and implications for control, liability, and tax treatment.

An owner trust is an arrangement where a US citizen trustee holds legal title to the aircraft while the foreign owner (beneficiary) retains beneficial ownership and the right to direct the use and disposition of the aircraft.

The FAA has approved several trust companies to serve as owner trustees. These specialized trustees understand aviation requirements and maintain the necessary registrations with the FAA. Typical trustee fees range from $2,500 to $7,500 annually depending on aircraft value and service level.

The trust agreement defines the relationship between trustee and beneficiary, including provisions for operational control, insurance requirements, and sale or transfer procedures. Standard trust agreements are available from approved trustees and can be customized for specific needs.

Foreign nationals can also register aircraft through US corporations in which they hold ownership. However, FAA regulations require that the corporation be organized under US law, the president and at least two-thirds of the board of directors be US citizens, and US citizens control at least 75% of the voting interest.

This structure is more complex to maintain and requires ongoing compliance with corporate formalities. It may be appropriate for buyers planning substantial US operations or those who need a US corporate presence for other business reasons.

The registration process begins with selecting an approved trustee or establishing the appropriate corporate structure. The trustee or entity then submits FAA Form 8050-1 (Aircraft Registration Application) along with evidence of ownership and citizenship/eligibility.

Processing time varies but typically takes 4-8 weeks for initial registration. Expedited processing is available for additional fees when transaction timing is critical. The FAA issues an N-number (registration number) that becomes the aircraft's official identifier.

Aircraft registration must be renewed every three years under the FAA's rolling renewal program. The trustee is responsible for ensuring timely renewal and maintaining accurate records with the FAA.

Any changes to the trust arrangement, such as change of beneficiary or trustee, must be properly documented and filed with the FAA. Failure to maintain proper registration can result in the aircraft being grounded and may void insurance coverage.