Buy an aircraft and make money with it — that's the wish of some buyers. The reality is more nuanced: aircraft are generally not classic capital investments, but under certain conditions they can be tax-efficient and hold their value surprisingly well. It all depends on the model, the market, and the strategy.

Depreciation — Numbers Instead of Myths

Basic principle: aircraft depreciate. How quickly depends heavily on the segment:

Typical Depreciation Curves by Segment

SegmentYear 1Year 5Year 10
Very Light Jet (Cirrus SF50)−8%−28%−45%
Light Jet (Phenom 100)−10%−35%−55%
Midsize Jet (Citation Latitude)−8%−30%−52%
Large Cabin (Global 6500)−6%−22%−40%
Turboprop (TBM 960)−5%−18%−32%
High-Perf. Piston (Cirrus SR22T)−7%−25%−42%

Values are market averages — individually dependent on maintenance, hours, avionics status, and market conditions.

Interestingly: turboprops like the TBM series (Daher) or the Pilatus PC-12 historically hold their value better than jets in the same price segment. This is due to their versatility (can use shorter runways, lower operating costs) and a loyal buyer community.

Models with particularly strong residual values: Pilatus PC-12 (huge demand, limited production capacity), TBM 940/960, Cirrus SR22T (broad buyer base, strong community), and younger Gulfstream models. These models historically depreciate 20–30% less than the segment average.

Value-Enhancing and Value-Reducing Factors

  • Value-enhancing factors: Low total time (TT), freshly overhauled engine (SMOH), current avionics status (ADS-B, SVT, WAAS), complete maintenance documentation, single-owner history
  • Value-reducing factors: Engine near TBO (Time Between Overhaul), outdated avionics, hail or bird strike repairs, missing or incomplete logbooks, high operating hours
An aircraft without complete logbooks is virtually unsaleable on the pre-owned market — or only with a significant discount. Missing maintenance records are not just a value problem but also a safety issue. Do not buy an aircraft without complete documentation.

Tax Considerations — Germany, Austria, Switzerland

For companies, a corporate aircraft can be tax-efficient — under certain conditions:

Tax Principles (Germany)

  • Business use: With predominantly business use, the aircraft can be capitalized as a business asset and depreciated over 6–10 years
  • VAT recovery: Possible with business use — condition: flights demonstrably serve business purposes
  • Personal use: Must be taxed as a benefit in kind (similar to company car rules)
  • Losses from charter-back: Can be offset against business profits — only if charter activity qualifies as a genuine income source ("profit intent")
Austria and Switzerland have similar basic principles — but different details regarding depreciation periods, VAT on international flights, and proof of business necessity. A specialized tax advisor with aviation experience is indispensable before any purchase.

Charter-Back as a Value Strategy

A common strategy: your own aircraft is chartered out during idle periods through a charter operator (with AOC). This reduces the fixed cost burden by 20–40% per year. The trade-offs:

  • The aircraft is flown more → higher hourly wear → lower residual value
  • Charter operations require a higher maintenance standard → higher maintenance costs
  • Availability for the owner is limited (bookings by charter customers)
  • Tax complexity increases significantly

Buying an aircraft as a pure capital investment is not a good strategy — the ongoing costs are too high and depreciation too certain. As a tool for a business with genuine operational use, combined with smart tax planning and optional charter-back, an aircraft can indeed be economically viable.

The most honest answer to the investment question: an aircraft is a good investment when it saves you time — and time is the scarcest resource of all for entrepreneurs.