The glossary to understand and take action

Leasing

Leasing arranges for an asset to be made available in exchange for payments under the terms of a financing or rental agreement.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

Review the term, included services, ownership, options and exit fees. The accounting and tax treatment depends on the classification of the agreement; compare its full cost with other financing options.

In your file

What this changes in practice

Leasing arranges for the use of an asset in exchange for contractual payments, with terms varying according to the transaction. Any purchase option, the term, included services and risks borne influence its analysis. Its accounting and tax treatment depends on the framework adopted: the comparison must not focus solely on the monthly payment. Also review exit fees and the total cost.

A scenario to help you understand

Educational example

A company compares purchasing and leasing equipment. It reviews the initial contribution, rent payments, maintenance, the final option and the effect on its cash flow.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Comparer le coût total
  • Lire les conditions de sortie
  • Vérifier le traitement comptable et fiscal

The practical question

Find out more

Pourquoi comparer le coût total plutôt que le seul loyer de leasing ?

L’apport, les loyers, services, frais, restrictions d’usage et valeur finale peuvent modifier fortement la comparaison. Examinez aussi les conditions de rupture et la prise en charge des risques. Le financement doit être cohérent avec la durée d’utilisation prévue et les capacités de trésorerie, en plus de son traitement comptable et fiscal.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Fixed assetAn item intended for long-term use in the business, whose classification and measurement must be assessed under the applicable accounting framework.Financial forecastThe financial forecast translates the project's assumptions into expected results, cash flows and financing needs.Benefit in kindA benefit in kind is a good or service provided to an employee that may constitute an element of remuneration under the applicable rules.Right to deduct VATThe right to deduct allows, subject to conditions, the deduction of input VAT incurred in connection with transactions giving rise to that right.DepreciationDepreciation allocates the depreciable amount of an asset over its estimated useful life, in accordance with the applicable rules.ImpairmentA value adjustment considered when an asset has suffered a loss in value that must be taken into account under the applicable rules.

Put it into practice

Explore further with our guides

Practical guideCompany car in Luxembourg: preparing the calculation of the benefit in kindPractical guideFixed assets: maintain a register and prepare depreciation

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.