The legal framework of the lease depends on the type of contract selected. The operative lease is regulated in the common book of law (BGB); and the finance lease is regulated in the KWG credit law. In practice, many areas of law are affected (laws dealing with the tendering of accounts, tax laws).

As in other EU countries, where new balance sheet accounting standards (e.g. IAS/IFRS and US-GAAP) are required, two definitions are becoming important: "finance leasing” and "operational leasing." The first is roughly equivalent to full amortisation. The second is roughly equivalent to partial amortisation. Characteristic of operational leasing, however, is that it involves very short agreement periods. The leasing company assumes full risk for the leased goods and must ensure that they are returned after expiry of the agreement.

Legal regulations require a good deal of know-how, particularly when it comes to drawing up leasing agreements for tax, balance sheet accounting and civil law purposes. Deutsche Leasing Hungary Kft. - with more than ten years experience in the country - has this know-how. We are well versed in all facets of leasing and can offer you a wide range of effective, tailor-made solutions.