QUESTIONS

ANSWERS

Can a sole trader acquire equipment through a leasing contract?

YES.

Can a leasing contract for real estate have duration of 8 years?

NO. According to Greek Law, the minimum duration of a real estate leasing contract is 10 years

Can the licence required for trucks for hire be acquired via a leasing contract?

NO. Only fixed assets can be acquired through leasing contracts.

Can a leasing contract for equipment of net value of 7.000,00 Euros be signed?

NO. The minimum amount for leasing contracts is set at 15.000€.

Is VAT charged on lease payments concerning leasing contracts for industrial premises?

YES. VAT is charged on lease payments concerning leasing contracts for industrial premises. Other types of real estate are exempt.

Is it possible to tailor the size of lease payments in accordance with the lessee’s cash flow needs?

YES. For example, they may be lower during the first year of the contract, or there might be a grace period (no lease payments due).

Is VAT charged on lease payments concerning real estate leasing contracts?

NO. VAT is not charged on lease payments concerning real estate leasing contracts, except in the case of lease contracts concerning industrial premises, in which case VAT is charged.

Is it possible to payoff early a leasing contract for equipment before its maturity date?

YES. In accordance with the provisions of the contract.

Is transfer tax due at the maturity date of the a real estate leasing contract?

NO. Transfer tax is paid only once, upon signing the contract (in cases of real estate sale and lease back contacts, no transfer tax is due at all).

Is it possible to payoff early a real estate leasing contract before completion of three years from the time of signing the contract?

YES. But it would not be in the interests of the lessee, since the tax deductibility of lease payments already made would be revoked. Moreover, in case of a real estate sale and leaseback contract, transfer tax would also be due.

When is it possible to payoff early a real estate leasing contract without any negative consequences?

After the completion of three years from the time of signing the contract.

What types of real estate can be included in a leasing contract?

Offices, stores, warehouses, industrial premises, hotels, night clubs, cinemas, educational facilities, medical offices, pharmacies, and all types of professional premises.

Can a real estate leasing contract concerning a plot without a building be signed?

NO. Since plots are not subject to depreciation