Cyprus Leasing Law

The Leasing Law (72(I)/2016) entered into force on 28 April 2016. The purpose of this Law is to regulate and supervise the provision of financial leasing services to the public, in order to provide consumers and enterprises with alternative ways of financing.

Financial leasing is an alternative to traditional credit financing through which medium to long-term financing can be granted, thus enabling the public to acquire assets. Specifically, a leasing company (Lessor) buys an asset at the request of a client (Lessee). The asset will be made available to the client for a specific period of time, in exchange for frequent payments.  In accordance with the Law, the agreement between the leasing company and the client must be in a written form. For more information, contact one of our Cyprus lawyers.