Buying a private jet in Canada

1. Tax: what changed

Canada's luxury tax on aircraft priced above $100,000 applied from September 2022. Budget 2025 removed it for aircraft and vessels from 5 November 2025, and Bill C-15 received royal assent on 26 March 2026. GST or harmonized sales tax still applies on most domestic purchases and on importation, and provincial rules differ. Speak to a tax adviser about structure and input tax credits before you sign the letter of intent.

2. Importing an aircraft

• Deregister the aircraft from its foreign registry, or obtain evidence that it is not registered elsewhere.
• Clear the aircraft through the Canada Border Services Agency and pay GST or harmonized sales tax at importation unless relief applies.
• A provisional certificate of registration can support the ferry flight to Canada.
• Plan the import airworthiness work, including Canadian-specific equipment and documents.

3. Registration and title

Transport Canada registers aircraft to a qualified owner under CAR 202.15. Registration records who has legal custody and control; it is not proof of ownership. Title and security interests are checked through lien searches and, for most jets, the International Registry under the Cape Town Convention, which Canada has implemented. Your aviation lawyer handles this.

4. Operating it

Owners usually choose between a private operation under CAR Subpart 604 (with a PORD where required) and placing the aircraft on a management company's commercial certificate so it can be chartered to others. Each has different crew, maintenance and tax implications. Read Part 91 vs Part 135 and Canada's rules.

5. The deal itself

Define the mission, shortlist aircraft, sign an LOI with a deposit in escrow, run an independent pre-buy inspection, then close with an aircraft purchase agreement. See how private jet acquisitions work. AeroSterling provides acquisition research and introduces independent inspection facilities, lawyers and escrow agents through the Partner Network; we do not act as your broker unless agreed in writing.

Frequently asked questions

Is there still a luxury tax on private jets in Canada?

No. Under Bill C-15 (Budget 2025 Implementation Act, No. 1), luxury tax is not payable on subject aircraft where it would otherwise have become payable after 4 November 2025.

Do I pay GST or harmonized sales tax when importing a private jet into Canada?

Generally yes, at importation. A GST registrant using the aircraft in commercial activities may be able to claim input tax credits. Temporary importation relief may be available in some cases with CRA authorisation. Get tax advice before you sign.

Who can register an aircraft in Canada?

A qualified person under CAR 202.15, generally a Canadian citizen or permanent resident, or a corporation meeting the rules. Some Canadian-incorporated entities that are not Canadian may qualify with conditions, including flight-time conditions.

Does a Canadian private jet owner need a PORD?

A private operator registration document under CAR Subpart 604 is required for private operation of certain aircraft, including turbojet aeroplanes and large or pressurised turbine aeroplanes. Check Transport Canada's guidance for your type.

General information, not legal, tax or operational advice. Rules, airport procedures and prices change; the operator and your advisers confirm what applies to your trip. Distances are great-circle figures from our airport data; times are indicative.

Sources

• CRA: LTN5, luxury tax not payable on subject aircraft and vessels
• Justice Laws: Budget 2025 Implementation Act, No. 1 (s. 171)
• CBSA: Importing goods into Canada
• Transport Canada: AC 202-002, registration of aircraft
• Canadian Aviation Regulations s. 202.15
• Transport Canada: private operator registration document, Q&A