Equipment Leasing in Germany & the DACH Region: Finanzierungsleasing, BaFin Regulation & Tax in 2026
Germany is Europe's largest leasing market and the anchor of the DACH region — Germany, Austria and Switzerland. This guide sets out the latest market data, how German lease structures work, what BaFin requires of leasing companies after its October 2025 supervisory notice and the BRUBEG reforms, and how the 2025–2027 “Investitions-Booster” changes the economics — then compares the German rules with Austria and Switzerland, so vendors can plan one programme across all three markets.
- Established 1992 — 34 years in leasing
- Germany, Austria & Switzerland covered
- 40+ funder relationships in 30+ countries
- €100,000 to €10 million per transaction
- Founding member, Guild of Business Finance Professionals
More than a quarter of all German equipment investment is leased
Germany is Europe's largest industrial economy, and leasing is embedded in how the Mittelstand invests — a pattern shared across the German-speaking DACH markets of Austria and Switzerland. For German businesses, Finanzierungsleasing is not an alternative to buying — it is the default way to put machinery, vehicles and technology to work while preserving liquidity and bank lines.
Where German companies are investing
The 2025 figures published by the Bundesverband Deutscher Leasing-Unternehmen (BDL) and the Institut der deutschen Wirtschaft (IW Köln) in early 2026 show a clear split. Growth came from digitalisation and e-mobility — IT investment turned the corner after several weak years, and two in every three new electric cars in Germany are leased. Classic production machinery investment remained under pressure.
For manufacturers and vendors selling capital equipment into Germany, that matters: when buyers are cautious about committing capital to production assets, a well-priced lease offered at the point of sale is often what moves a deal from “next year” to “this quarter”.
Why German businesses lease
- Liquidity: preserve working capital and keep Hausbank credit lines free for operations.
- Matched funding: align payments with the economic life and output of the asset.
- Obsolescence management: refresh IT, medical and production technology on a planned cycle.
- Balance-sheet treatment: under German GAAP (HGB), correctly structured leases stay off the lessee's balance sheet.
- Predictability: fixed instalments support budgeting and investment approval.
Finanzierungsleasing, operating leasing and Mietkauf
German leasing vocabulary differs from UK usage. In particular, a German Finanzierungsleasing contract is usually structured so that the lessor remains the economic owner for tax and HGB purposes — it is not the same as a UK “finance lease”.
Full-payout lease
Vollamortisationsvertrag- Fixed, non-cancellable basic lease term (Grundmietzeit)
- Instalments cover the lessor's full cost: price, ancillary and funding costs
- Lessee carries risk of loss, damage and maintenance
- Commonly used for machinery, production lines and specialist equipment
Partial-payout lease
Teilamortisationsvertrag- Instalments cover only part of the cost; a residual value remains
- Residual settled by sale, a lessee payment, or an agreed option (e.g. tender right, Andienungsrecht)
- Lower monthly payments than full payout
- Widely used for vehicles, construction plant and assets with a liquid used market
Operating lease & Mietkauf
Operating-Leasing · Mietkauf (hire purchase)- Operating lease: shorter, flexible terms; lessor carries the residual value risk — typical for IT and office technology
- Mietkauf: ownership passes at the end; asset sits on the customer's balance sheet from day one — reported alongside leasing in BDL figures
Who is the economic owner? The 40–90% rule
Germany allocates assets by economic ownership (wirtschaftliches Eigentum), not legal title. For movable equipment, the Federal Ministry of Finance leasing decrees apply a test based on the ratio of the basic lease term to the asset's useful life under the official depreciation tables (AfA-Tabellen):
| Basic lease term as % of useful life | Typical outcome |
|---|---|
| Under 40% | Treated like an instalment purchase — lessee is economic owner |
| 40% to 90%, no option | Lessor is economic owner (the standard German lease) |
| 40% to 90%, purchase or renewal option below book value / market rent | Lessee is economic owner |
| Over 90% | Lease term ≈ useful life — lessee is economic owner |
| Special-purpose asset usable only by the lessee (Spezialleasing) | Lessee is economic owner, regardless of term |
This allocation drives the balance sheet, who claims depreciation (including the new 30% degressive AfA) and, in some cases, VAT treatment. It should be settled with your tax adviser before contracts are signed.
How BaFin regulates equipment leasing in Germany
Germany is one of the few European markets where leasing companies themselves are licensed and supervised by the financial regulator. BaFin, headquartered in Bonn and Frankfurt am Main, works alongside the Deutsche Bundesbank on the ongoing supervision of leasing institutions.
The licence requirement
Since 2009, Finanzierungsleasing has been a regulated financial service under Section 1(1a) sentence 2 no. 10 of the German Banking Act (KWG). Anyone offering it commercially, or on a scale requiring a commercially organised business, needs a written BaFin licence under Section 32 KWG.
BaFin's test is economic, not contractual. What matters is whether the contract has a financing function — the lessor aims to recover its full cost through a single period of use plus realisation of the asset. A civil court might classify the same contract as a simple rental, and it can still require a licence.
Two further points are often missed:
- Manufacturer leasing is not automatically exempt. BaFin's 2021 guidance corrected its earlier view: a manufacturer's captive leasing can require a licence.
- Foreign providers are caught. A UK, EU or other foreign lessor that targets German customers repeatedly and commercially generally needs a Section 32 KWG licence, even without a German office.
“KWG-light” — what supervision involves
Leasing institutions are financial services institutions under a reduced regime, commonly called KWG-light. They are exempt from bank capital, liquidity and large-exposure rules, but must meet:
- Sound business organisation under Section 25a KWG and the MaRisk risk-management requirements
- Two qualified managing directors (required since 1 January 2024)
- Fit-and-proper rules for management and qualifying shareholders
- Reporting to BaFin and the Bundesbank, including loans of €1 million or more (Section 14 KWG) and notifications under Section 24 KWG
- Anti-money-laundering obligations under the Geldwäschegesetz (GwG)
- DORA — the EU Digital Operational Resilience Act has applied to financial leasing institutions since 17 January 2025, covering ICT risk, incident reporting and third-party IT providers
October 2025 supervisory notice: mileage and residual-value leases still need a licence
On 13 October 2025, BaFin published a supervisory notice (Aufsichtsmitteilung) on leases with actual-imputed amortisation (faktisch-kalkulatorische Amortisation) — most commonly mileage-based vehicle leasing (Kilometerleasing).
- BaFin confirmed it is applying the position set out in its May 2021 guidance note.
- A fixed residual value figure in the contract is not required. It is sufficient that the amortisation gap can realistically be closed by selling the asset at the end of the term, which presupposes a sufficiently liquid secondary market.
- Those contracts are therefore financial leasing requiring a licence.
- A narrower December 2024 wording, which had required a stated residual value, was effectively withdrawn, and the guidance note itself was taken down from BaFin's website pending legislation.
Practical effect: lessors cannot avoid the licence requirement simply by leaving the residual value out of the contract. For assets without a liquid used market, the analysis remains case-by-case.
BRUBEG: Germany's CRD VI implementation and what it changes for lessors
The Bankenrichtlinienumsetzungs- und Bürokratieentlastungsgesetz (BRUBEG) implements the EU Banking Directive CRD VI (Directive (EU) 2024/1619) and amends the KWG. For leasing it:
- Codifies the scope of Finanzierungsleasing, clarifying that it also covers contracts that secure financing of essential parts of the value chain, and that mileage leasing without a residual value guarantee is treated like other financial leasing.
- Bars sole proprietorships from operating as leasing institutions — the consequence of the two-manager requirement.
- Introduces ESG-risk obligations for institutions, with proportionate reliefs for leasing and factoring companies; the BDL lobbied for smaller lessors to be exempt from transition-plan duties.
- 17 January 2025DORA applies to financial leasing institutions.
- June 2025BaFin publishes its strategic objectives for 2026–2029, with more on-site audits, data-driven supervision, a sharper anti-money-laundering focus and a commitment to proportionality.
- 8 October 2025Federal cabinet approves the BRUBEG government draft.
- 13 October 2025BaFin supervisory notice confirms the May 2021 position on actual-imputed amortisation.
- 28 January 2026Bundestag Finance Committee approves BRUBEG with amendments (sole proprietorships remain excluded).
- 30 March 2026BRUBEG published in the Federal Law Gazette; key provisions in force from 1 April 2026, with the third-country branch regime applying from 11 January 2027.
German GAAP (HGB) vs IFRS 16
Most German Mittelstand companies report under the Handelsgesetzbuch (HGB), which follows economic ownership. That is a key reason leasing remains so popular in Germany: a standard lease stays off the lessee's HGB balance sheet.
| Lessor is economic owner (standard German lease) | Lessee is economic owner | |
|---|---|---|
| Lessee balance sheet (HGB) | No asset, no lease liability | Asset capitalised; lease liability recognised |
| Lessee P&L (HGB) | Lease instalments expensed as operating costs | Depreciation plus interest element of each instalment |
| Depreciation claimed by | Lessor | Lessee |
| IFRS 16 (group / capital-market reporters) | Almost all leases capitalised by the lessee as a right-of-use asset and lease liability (exemptions for short-term and low-value leases). HGB does not apply IFRS 16. | |
Tax, depreciation and VAT on leased equipment
The 2025–2027 “Investitions-Booster”
Germany's Gesetz für ein steuerliches Investitionssofortprogramm, promulgated in July 2025, reintroduced declining-balance (degressive) depreciation for movable fixed assets:
- Up to 3× the straight-line rate, capped at 30% a year
- For assets acquired from 1 July 2025 to 31 December 2027
- Separate accelerated depreciation for new fully electric company vehicles
- Corporate income tax to fall stepwise from 2028, bringing the overall business tax burden from around 30% towards 25% by 2032
Only the economic owner claims depreciation. In a standard German lease, that is the lessor — the benefit can flow through into lease pricing. Where the lessee is the economic owner (or with Mietkauf), the customer claims it directly. With the window closing at the end of 2027, timing of deliveries matters.
Income tax and trade tax
- Lease instalments are generally deductible business expenses where the lessor is the economic owner.
- Depreciation follows the official AfA tables issued by the Federal Ministry of Finance; straight-line remains the default alongside the temporary degressive option.
- Trade tax (Gewerbesteuer): a portion of lease payments for movable assets (one fifth) is added back when calculating trade tax, subject to an annual allowance — factor this into lease-versus-loan comparisons.
VAT (Mehrwertsteuer)
- Leasing of movable equipment is normally a supply of services, with 19% MwSt charged on each instalment.
- If the contract provides for ownership to pass to the lessee in the normal course (as with Mietkauf), it can be a supply of goods, with VAT due upfront on the full price.
- VAT is generally fully recoverable by a VAT-registered lessee using the equipment for taxable business activity.
Leasing across the DACH region
For manufacturers and vendors, the DACH region — Deutschland, Austria and Switzerland (Confoederatio Helvetica) — is usually one sales territory, with one language and closely aligned customer expectations. Leasing works on similar commercial lines in all three, but regulation, tax and currency differ in ways that shape how a programme must be set up.
| Germany (D) | Austria (A) | Switzerland (CH) | |
|---|---|---|---|
| Regulator | BaFin, with the Deutsche Bundesbank | Finanzmarktaufsicht (FMA), with the Oesterreichische Nationalbank | FINMA |
| Licence for B2B equipment leasing? | Yes — Finanzierungsleasing needs a BaFin licence (§32 KWG); “KWG-light” supervision, MaRisk, DORA | No dedicated licence — leasing is a financial-institution activity under §1(2) BWG; many lessors are bank subsidiaries supervised at group level; AML rules apply | No FINMA licence for commercial leasing; consumer leasing regulated under the Consumer Credit Act (KKG) |
| EU / EEA status | EU member | EU member | Outside the EU/EEA — no passporting; customs on imported equipment |
| VAT on instalments | 19% MwSt | 20% USt | 8.1% MWST |
| Local accounting | HGB — economic ownership | UGB — economic ownership | Swiss Code of Obligations (OR) / Swiss GAAP FER |
| Currency | EUR | EUR | CHF (EUR funding possible for some customers) |
| Industry association | BDL | VÖL | Schweizerischer Leasingverband (SLV) |
Austria
Austria's market is dominated by vehicle leasing, which made up around 81% of new business in the first half of 2026, according to the Verband Österreichischer Leasing-Gesellschaften (VÖL). Equipment leasing is smaller but steady, and the VÖL describes investment appetite as still cautious — conditions in which flexible, liquidity-preserving finance is especially valued. Most large lessors belong to Austrian banking groups, which shapes credit appetite when structuring vendor programmes.
Switzerland
Capital equipment accounts for around 42% of Swiss leasing new business. A May 2026 study by BAK Economics and FHNW for the Swiss Leasing Association found that companies using leasing came through the crisis better, invested more in the post-Covid period, and that the Swiss market has significant room to grow. Because Switzerland is outside the EU, German- or UK-built equipment is imported and funding is typically in CHF — both need planning into pricing and documentation.
What can be leased in Germany and the DACH region?
Across Germany, Austria and Switzerland, almost any independent, movable business asset with a definable value and useful life can be leased, including:
Industrial
- Machine tools, production lines and industrial robotics
- Packaging, printing and food-processing equipment
- Energy and renewables installations
Mobile & infrastructure
- Construction and agricultural machinery
- Commercial vehicles, e-fleets and charging infrastructure
- Airport ground support equipment
Technology & healthcare
- IT hardware, data-centre and AV equipment, bundled software
- Medical imaging and laboratory equipment
- Office and security technology
Highly specialised assets built exclusively for one lessee (Spezialleasing) are usually treated as economically owned by the lessee, even without a purchase option.
Your route into the German and wider DACH leasing market
Oak Leasing is a bespoke pan-European funding facilitator for equipment finance across the UK and Europe, established in 1992. We are not a direct lender: we structure transactions and programmes, then place them with the right funder from more than 40 relationships across 30+ countries — including BaFin-authorised German lessors.
Vendor leasing programmes
For manufacturers, OEMs and distributors selling into Germany, Austria and Switzerland — one proposition across the DACH region, in EUR or CHF. Leasing built into your sales process, with the funder taking credit and asset risk so funding is never the reason a deal stalls.
Large-ticket transactions
Single transactions from €100,000 to €10 million, plus sale and leaseback and refinance of large assets through an independent European funder, with capacity of up to €100 million per transaction.
Stage payment funding
For UK businesses buying German or European-manufactured equipment: the funder meets the manufacturer's stage payments, secured by an advance payment guarantee, and you pay only interest on deposits until delivery.
Every structure is built to fit local tax, accounting and regulatory requirements — BaFin in Germany, the FMA in Austria, FINMA and the Consumer Credit Act in Switzerland — delivered with one point of contact across the DACH region and Europe.
Equipment leasing in Germany and the DACH region: FAQs
Is equipment leasing regulated in Germany?
Yes. Since 2009 Finanzierungsleasing has been a financial service under Section 1(1a) sentence 2 no. 10 KWG. Anyone offering it commercially to German customers needs a written BaFin licence under Section 32 KWG. Leasing institutions are supervised under a reduced “KWG-light” regime but must meet organisational, MaRisk, anti-money-laundering and DORA requirements.
What did BaFin's October 2025 supervisory notice say?
On 13 October 2025 BaFin confirmed it applies its May 2021 guidance. For leases with actual-imputed amortisation, such as mileage leasing, a fixed residual value in the contract is not needed — it is enough that a sale can realistically close the amortisation gap — so these contracts require a licence. A stricter December 2024 wording was effectively withdrawn.
How large is the German leasing market?
New leasing and hire purchase business reached €83.12 billion in 2025, up 3.2%, according to the BDL and IW Köln. Equipment (movable-asset) leasing accounted for €71.16 billion and leasing financed 26.6% of all equipment investment in Germany.
Who claims the 30% degressive depreciation on leased equipment?
The economic owner. The 30% declining-balance depreciation applies to movable assets acquired between 1 July 2025 and 31 December 2027. In a standard German lease the lessor is the economic owner and claims it, which can be reflected in pricing; where the lessee is the economic owner, or under Mietkauf, the lessee claims it.
Can a UK company lease equipment to German customers?
A provider targeting German customers with finance leasing on a repeated, commercial basis generally needs a BaFin licence, even if based abroad. UK manufacturers and vendors therefore usually work with a German-licensed lessor. Oak Leasing arranges this through its European funder network.
Does a German lease appear on the customer's balance sheet?
Under HGB, not if the lessor is the economic owner — instalments are expensed. Groups reporting under IFRS 16 capitalise almost all leases as a right-of-use asset and liability.
How does equipment leasing differ across the DACH region?
Germany is the only DACH country where non-bank lessors need a dedicated regulator licence (BaFin, under the KWG). In Austria leasing is a financial-institution activity under §1(2) BWG without its own FMA licence, though many lessors are bank subsidiaries. In Switzerland, B2B leasing is not FINMA-licensed and consumer leasing falls under the Consumer Credit Act. VAT is 19% in Germany, 20% in Austria and 8.1% in Switzerland, and Switzerland's position outside the EU means customs and usually CHF funding.
How big are the Austrian and Swiss leasing markets?
Austrian lessors wrote around €5.47 billion of new business in the first half of 2026 (VÖL), with equipment leasing at about €940 million. Swiss leasing new business was CHF 16.7 billion in 2025, of which around CHF 7.1 billion was capital equipment (BAK Economics / FHNW for the SLV).
What VAT applies to leasing in Germany?
Usually 19% MwSt on each instalment, as a supply of services. If ownership is intended to pass to the lessee, the contract can be treated as a supply of goods, with VAT due upfront.
What deal sizes does Oaklease arrange in the DACH region?
Single transactions typically from €100,000 to €10 million. Smaller tickets from around €10,000 are considered within vendor leasing programmes rather than as one-off deals, and large-asset refinance can go up to €100 million per transaction.
Important information
This guide is for general information only and does not constitute legal, regulatory, tax or accounting advice. Figures and regulatory positions are stated as at October 2026 and may change; BRUBEG has been enacted (in force from 1 April 2026), but BaFin administrative practice should be checked for the latest position. Before entering into any leasing arrangement, take independent advice from your own accountants, tax advisers and legal advisers. Austrian and Swiss information is a summary for comparison only. Oak Leasing Ltd is not a direct lender.
Sources & further reading
- BaFin — Bundesanstalt für Finanzdienstleistungsaufsicht
- BDL — Zahlen & Daten zum Leasing-Markt 2025 (March 2026)
- IW Köln — Leasing-Marktbericht 2025 (February 2026)
- Deutscher Bundestag — Finance Committee approves BRUBEG (28 January 2026)
- VÖL half-year results 2026 (Austria), via Leadersnet
- BAK Economics / FHNW for the Swiss Leasing Association — Bedeutung von Leasing (May 2026)
- FMA — Austrian Financial Market Authority
- FINMA — Swiss Financial Market Supervisory Authority
- IHK München — Steuerliches Investitionssofortprogramm
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