Leasing Be informed about Leasing programs, offered by the Attica Bank network of stores. Leasing Leasing Leasing is a modern way of financing which allows a business or a self-employed professional to acquire the use (and finally ownership) of movable and immovable investment assets. In Greece, leasing began with entry into force of Law 1665/86, as amended by Laws 2367/95 and 2682/99, which is presently in effect. Through leasing, the bank grants the lessee (a business or a self-employed professional) use of movable equipment or immovable property for a specified period of time in exchange for a lease payment. The lessee pays the Bank lease payments for a specific period of time (at least 3 years for movable equipment and 10 years for immovable property) and, upon expiry of the contract, acquires ownership of the object in question for an agreed upon price. Throughout the entire course of the lease contract, the Bank retains ownership of the object in question, and the lessee has possession and use. Types of leasing Leasing of movable equipment The bank purchases the equipment chosen by the business (from Greece or abroad) and subsequently leases it to the latter in exchange for an agreed upon lease payment Direct leasing of immovable property The Bank buys the property specified by the business and subsequently leases it in exchange for a lease payment. Sale & Leaseback of immovable property and equipment The Bank purchases the movable equipment or the commercial property from the business and re-leases it to the latter, according to agreed upon terms. Vendor Leasing The bank can partner with suppliers of assets such as vehicles, construction machinery, medical equipment etc. for the purpose of promoting Leasing to interested businesses. An attractive option for: Self-employed professionals Sole proprietorships Legal Persons Under Private Law (SA, LLC, PC, Limited Partnership, General Partnership, etc.) Legal Persons Under Public Law Through leasing you can finance: Production and office equipment Medical and diagnostic equipment Vehicles and cars of all types Office, hotel and educational equipment; factory and warehouse mechanical equipment; computers Wind and photovoltaic farms Buildings for business/corporate activity All types of aircraft or any other investment asset. You can’t finance through leasing: Ships and watercraft Land plots Consumables Maintenance works Provision of services Operating licenses and software Residences Benefits Financing You can finance up to 100% of the value of the asset including VAT. Liquidity Leasing avoids tying up of capital and company liquidity is bolstered. Taxation Leasing of immovable property is exempt from property transfer tax upon expiry. The company transferring immovable property to the Bank upon conclusion of the Sale & Leaseback Agreement is exempt from property transfer tax. Lease payment interest and amortisation of the leased property are considered operating expenses which are deductible from the lessee's gross income. Lease Terms Competitive lease terms compared to bank loan Flexibility In the terms of repayment, according to the company's financial capacity (seasonality, frontloaded or backloaded lease payments) Combining with investment programmes Financing through Leasing can be subject to a Development Law according to the conditions stipulated by the latter. Other Characteristics Speed and flexibility in actualising the investment Creation of liquidity from existing company assets Possibility for early termination of the lease and acquiring ownership of the object in question. Tax and Accounting Framework On the basis of Law 4172/2013, the lessee is required to make write-downs for all contracts concluded after 01/01/2014. Pursuant to the adoption of Law 4223/12 (Article 26), for all contracts concluded up to 31/12/2013, the lessee is required to make write-downs after 01/01/2019. Finally, on the basis of Law 4308/14 (Article 18), the leased asset is recognised on the lessee's balance sheet, and write-downs are made on the basis of the relevant tax legislation. At the same time, debt in the same amount is recognised for the lessor, which is treated as a loan, and the lease payment paid is split into amortisation and interest. On the fiscal year results, the lease amount interest and amortisation of the leased property are deductible from the lessee's gross tax revenue. For more information regarding the detailed conditions of the sale of this product, please contact the Attica Bank branch network and/or the Bancassurance – Leasing & Factoring Operations Support Sub Department at +30-210-3669000.