Financial leasing of movable assets
24 Oct 2025
Thinking of entering into a financial leasing transaction for movable assets in Belgium? This flash briefly highlights the essential legal considerations including recognition requirements.
Applicable regulation
A) Royal Decree No. 55 of November 10, 1967 governing the legal status of companies specialized in finance leasing
Companies providing financial leasing services as meant in the Royal Decree No. 55 of November 10, 1967 (the “RD”) may be subject to obtaining a recognition by the Ministry of Economic Affairs.
Article 1 RD contains cumulative criteria that determine whether the activities performed are considered as a “financial leasing” falling under the scope of the RD. Article 2 RD specifies which type of lessor falls within the scope of the RD and what the consequences are for such lessor.
B) Cumulative criteria of financial leasing falling under the scope of RD
Article 1 RD contains five criteria: :
- It concerns business equipment that is used by the lessee exclusively for professional purposes;
- The equipment is purchased by the lessor specifically for the purpose of the leasing operation and is done based on the specific instructions of the future lessee;
- The duration specified in the contract must correspond to the expected period of business use of the equipment;
- The rent must be set in such a way that the value of the leased equipment is amortized over the duration specified in the contract;
- The contract must provide the lessee with the option to acquire ownership of the leased equipment at the end of the lease, upon payment of a price determined in the contract, which must correspond to the expected residual value of such equipment.
If such criteria are cumulatively fulfilled, the operation will qualify as a financial lease of movable assets as referred to in the RD and the lessor is subject to the requirements of the RD.
If the criteria are not cumulatively fulfilled, the operation should not fall in scope of the RD and lessor will not be subject to further requirements under the RD.
C) Professional lessors performing leasing activities falling in scope of the RD
If a lessor performs financial leasing activities (in scope of the RD) in the context of its usual business, the latter can only perform such activities after obtaining a recognition from the Ministry of Economic Affairs.
To obtain and maintain such recognition, the lessor must comply with certain capital and other financial/reporting requirements, and the lease contract must meet certain conditions and be approved by the Ministry of Economic Affairs. The detailed conditions and actions are included in a separate Ministerial Decree of September 20, 2012. The requirements for such recognition are not very substantial (compared to e.g. a banking license) but obtaining such recognition still requires some time and effort - typically about 2 months, once all documentation and information is provided to the Ministry of Economic Affairs.
D) Main activity vs ancillary nature of the operation
The Federal Service Economy generally considers that a lessor performing financial leasing activities in the context of their professional activities (so not for private purposes) falls in scope of the RD, regardless of whether these activities are ancillary to the lessor’s main activity.
But what if it only concerns a one-off leasing operation that falls in scope of the RD? There is one exception to this rule which was in the past accepted by the authorities (based on an answer to a parliamentary question): if the operation is a one-off transaction by the lessor which has not included financial leasing in its corporate purpose. This exception seems only to be applicable to a company that is never involved in granting leasings, is active in a totally different business (e.g. a manufacturing or holding company) and enters into a financial leasing transaction for one time only.
In the latter case it is better to be safe than sorry and to contact the Ministry of Economic Affairs upfront to obtain confirmation that the RD does not apply to such a one-off financial leasing transaction in Belgium.
E) Sanction
Companies that professionally engage in financial leasing falling in scope of article 1 RD, without having obtained the required recognition or being registered by the Ministry of Economic Affairs and without complying with the conditions of such recognition or registration, are subject to criminal sanctions (imprisonment from eight (8) days to six (6) months and/or with a fine of 200 to 50,000 euro). Furthermore, the judge may impose a permanent or temporary prohibition on carrying out the leasing activities and may order the complete or partial closure of the establishment where the violation was committed.
Key takeaways
Recognition from the Belgian Ministry of Economic Affairs is required for lessors whose leasing activities fall in scope of the RD. A company engaging in a one-off leasing operation that falls in scope of the RD could also be subject to the recognition requirement.
Non-compliance with the RD can result in criminal sanctions, prohibition on leasing activities and even closure of the business establishment.
If you have any questions regarding the applicability of Belgian regulation to your financial leasing transaction, do not hesitate to contact PwC Legal.
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