Times of Conflict: From Safety Flight to Tax Hell

Written 26/03/2026

Over 3 weeks into a possible third Gulf war and aviation in the region has nosedived. The data doesn’t lie.

From 3 to 19 March*:

• 98 business aircraft have relocated from their bases in the Middle East
• The amount of parked business aircraft in Dubai has dropped from 51 to 3
• There has been a $3billion exodus of the Middle Eastern business aircraft fleet

The news is actually worse for scheduled airlines.

*Data taken from WingX webinar on Middle East conflict on 20 March 2026.

Why Responsible Aircraft Owners Need Tax, Customs and Ownership Expertise More Than Ever

Current events in the Middle East are affecting more than just aviation. As oil process continue to rise businesses worldwide are feeling the impact.

It is natural that many will temporarily (or perhaps more longer term) relocate to the European area with their family and key assets. However, this flight to safety could turn into a tax nightmare unless careful consideration is taken.

Real Life Situations

Aircraft and other moveable assets can create a tax liability when they cross borders into the European area. We have put together a short overview of where we can offer support. This includes advice for clients who are:

• experiencing delays in aircraft transactions in the Gulf region.
• relocating their aircraft to safety zones in the European area.
• considering using their business aircraft to evacuate people.

Here are two solutions we initially consider for real life situations such as the above:

• Temporary Admission for aircraft relocating to Europe

For business aircraft moving from the Middle East into Europe, it may be possible to use Temporary Admission. Martyn Fiddler can help clarify any VAT considerations this might trigger.

• Relocating an aircraft transaction to a safer jurisdiction

If an aircraft sale or purchase is due to complete in an affected location, parties may prefer to close the transaction elsewhere. In these cases, our UK customs warehouse could offer a VAT neutral alternative.

If you would like to understand the wider context, our article ‘Flight to Safety’ explores how periods of global uncertainty often trigger a ’flight to safety’, where owners move high value assets into more stable environments.

Helping Responsible Owners Navigate Uncertainty

Martyn Fiddler has spent more than forty years supporting owners and users of business aircraft. We help owners understand their tax position, their customs obligations and their wider ownership responsibilities. We recognise that owning a business aircraft is not only a financial commitment but also a stewardship responsibility.

Today, some owners are dealing with more than day to day operations. They are managing the real concern of protecting their aircraft, maintaining access to it and ensuring they can relocate themselves or their families if required. We help these owners navigate that pressure with clarity, control and confidence.

Whether the requirement is fast relocation to the UK or EU under Temporary Admission, adjusting ownership arrangements to reduce regional exposure or creating a long term plan for compliant use of the aircraft across multiple jurisdictions, our focus is always the same. We help responsible owners protect both the aircraft and the investment behind it.

If you or your clients are reviewing how best to safeguard a business aircraft during this period of uncertainty, our team is ready to help contact hello@martynfiddler.com.