Leasing
The accounting and tax treatment of property leasing: practical issues
By Charlotte GAUCHON8 April 2025Have you opted for property leasing to finance your business premises? This financing tool has its own special accounting and tax features that you need to understand. Between special provisions, financial depreciation and the treatment of purchase options, the property leasing system is complex. Understanding the hybrid nature of property leasing Property leasing is a two-faced operation: legally a lease, economically a loan. This dual nature raises many questions about its accounting and tax treatment. According to article L. 313-7 of the French Monetary and Financial Code, property leasing is "a transaction whereby a company leases property for professional use, purchased by it or built on its behalf, where this transaction enables the lessee to become the owner of the leased property, at the latest at the end of the lease". This hybridity raises the question of whether the legal approach (a lease) or the economic approach (financing) should be favoured in the...
The end of property leasing: terms and legal implications
Leasing, Credit and consumer lawIn the jungle of commercial contracts, property leasing occupies a unique place. Neither a traditional lease nor a traditional sale, this complex transaction merits a closer look at its possible outcomes. After all, all leasing comes to an end - sometimes planned, sometimes precipitated. And it is often at this point that complications arise...Obligations and responsibilities in property leasing
Leasing, Credit and consumer lawProperty leasing is an original legal arrangement. Neither a simple lease nor pure financing, it creates a specific balance between the parties. The lessee has access to the property without any heavy initial investment, while the lessor retains ownership of the property as security. This hybrid structure means that the obligations and obligations of the parties...The fundamentals of property leasing: definition and essential mechanisms
Leasing, Credit and consumer lawProperty leasing is an attractive option for many companies looking to finance their business premises without tying up cash. This mechanism makes it possible to acquire a building without a large initial outlay. It is a complex mechanism combining leasing and credit, and deserves to be explored in all its essential aspects. What is property leasing? Legal definition A...Equipment leasing in the face of company difficulties (receivership and liquidation)
Leasing, Credit and consumer lawFacing financial difficulties is an ordeal for any company. When the situation becomes critical and receivership or liquidation proceedings are initiated, many questions arise about the fate of existing contracts. What happens to your equipment financed by equipment leasing? Can you continue to...Equipment leasing: lessor's guarantees and end of contract
Leasing, Credit and consumer lawAlthough equipment leasing offers many advantages to the lessee, it represents an investment and therefore a risk for the financial institution that buys the equipment and makes it available. How does the lessor protect itself against possible hazards, such as non-payment of rent or damage to the equipment? What are the...Equipment leasing contract: your rights and obligations as lessee
Leasing, Credit and consumer lawYou've chosen equipment leasing to finance new equipment. That's an important step. Now it's essential to fully understand the implications of the contract you are about to sign or have already signed. This document is not a mere formality; it defines a precise legal framework...Equipment leasing: a financing solution for your business?
Leasing, Credit and consumer lawFinancing the acquisition of equipment is a key stage in the development or modernisation of any business. These investments, which are often costly, are part of a wider corporate law framework. Among the professional financing solutions available, equipment leasing, also known as finance leasing, offers a highly attractive alternative...The life of the leasing contract: key stages and points to watch out for
Leasing, Credit and consumer lawSigning a leasing contract is no trivial matter. It commits your company for what is often a long time, with precise obligations and stages to be respected. Unlike a simple rental or direct purchase, leasing involves a specific procedure, from the moment it is set up to the end of the lease...Leasing: a financing solution for your business?
Leasing, Credit and consumer lawFinancing business equipment or property is an essential stage in the life of a company. Among the options available, leasing is often considered. It's a widespread solution, but its mechanisms and legal implications are sometimes unclear to company directors. Is it simply a...What assets can you finance with leasing? From equipment to property to shares
Leasing, Credit and consumer lawWhen you think of leasing, the image that often springs to mind is that of financing professional vehicles or industrial machinery. However, this financial tool is much more versatile. Did you know that it is possible, under certain conditions, to finance the purchase of your offices, or even a business premises?Property leasing: specific situations and special arrangements
Leasing, Credit and consumer lawProperty leasing is a powerful financing tool, but its structure can take different forms depending on a company's needs. Unlike traditional credit, leasing combines rental and purchase options in a sophisticated legal arrangement defined by article L. 313-7 of the French Monetary and Financial Code. Controlling the...The euro and its impact on leasing contracts
Leasing, Credit and consumer lawA recurring concern for companies when the euro was introduced was that of current leasing contracts. These contracts, which are executed successively over several years, seemed to be particularly exposed to currency turbulence. Twenty years on, these questions are still relevant when analysing the legal mechanisms applicable...Financial vs. operational leasing - Understanding the fundamental differences
Leasing, Credit and consumer lawIn asset financing, the distinction between financial and operational leasing raises decisive legal, accounting and tax issues. This differentiation determines how transactions are treated and structures contractual relations. Contrary to the traditionally narrow French view of leasing, the European approach reveals considerable complexity. Criteria for...European regulation of cross-border financial services
Leasing, Credit and consumer lawLeasing has become an essential financing tool in the European single market. Its cross-border dimension raises complex legal issues. This article analyses the regulatory framework for financial institutions operating across national borders. Freedom to provide services in the European Banking Directive...International leasing and the Ottawa Convention
Leasing, Credit and consumer lawCross-border financing requires appropriate legal frameworks. International leasing meets this need but creates areas of legal uncertainty. The Ottawa Convention attempts to remedy this. Definition and characteristics of international leasing A leasing transaction becomes international when the parties are governed by different legal systems. The contract...
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