Frequently Asked Questions
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Who buys the equipment?Alpha Leasing buys the equipment and / or property that has been previously selected by the Business or the Professional (lessee).
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What is the duration of the Leasing contract ?
The minimum Leasing duration is set by law at three (3) years for mobile equipment, ten (10) years for property and five (5) years for airplanes.The maximum duration is jointly determined with the Customer, depending on the fixed asset.
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What is the cost of a Leasing contract ?The cost of each contract includes administrative expenses, the lease, the annual premiums and the cost of acquisition.
Also:
a) the notary and transfer fees for commercial use vehicles
b) for property, the transfer tax (excluding Sale & Lease Back), the notary fees, appraisal costs, lawyers' fees, the conveyance fees and any other fees and property taxes. -
When are the lease payments made ?Payments are made on the beginning of the pre-agreed lease period (month or quarter). The lease payments can be variable or fixed.
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Is the customer’s participation required ?Normally yes, depending on the type of equipment and the customer’s financial position/status.
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Legal order and use of propertyThe property must have been built or settled in accordance with urban planning or other relevant provisions, its titles should be in entirely legal order, and its use should be in accordance with the lessee’s activity.
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Is conveyance / transfer tax paid in property Leasing ?If property is purchased, at the signing of the contract, tax is paid for the transfer to Alpha Leasing, which is borne by the lessee. The transfer to the lessee, at the end of the contract, is exempt of conveyance / transfer tax.
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What is Sale & Lease Back ?The Sale and Reverse Leasing "Sale & Lease Back" is a form of Leasing, which consists of a business selling a fixed asset to the Leasing Company, which then leases it to the same business (lessee). Upon expiry of the Contract, the fixed asset is returned to the business.
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What percentage of the property’s value is financed through Leasing ?A high percentage of the property’s market value is financed, however this results from the valuation made by Alpha Astika Akinita S.A.
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Is tax paid during the conclusion of the Property Sale & Lease Back contract ?There is a transfer tax exemption.
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What value is covered by the equipment Sale & Lease Back ?The interested party may choose Leasing of his fixed assets, which cover either the book value, or a value resulting from relative valuation by an authorized appraiser for estimating the current market value.
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Who is excluded from the property Sale & Lease Back ?The self-employed and Local Self-Government Organizations are excluded.
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Who does the property Sale & Lease Back address ?The Sale & Lease Back is addressed to any legal entity and can be applied to properties for all businesses, except for the self- employed professionals (natural persons).
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VAT and property LeasingUnlike Leasing of mobile assets, where the lease amount is subject to VAT, in the case of commercial property Leasing (premises and office buildings, shops, tourist facilities), the lease amounts are NOT subject to VAT or stamp duty. However, industrial plants (industrial and manufacturing buildings) are exempt and are subject to VAT.
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What kind of properties are subject to Leasing ?Properties that are subject to Leasing are offices, individual or office blocks, shops, department stores, supermarkets, warehouses, industrial plants, car parks, hotels, petrol stations, night clubs, cinemas, theaters, schools, clinics, pharmacies and generally any place that serves the lessee’s professional needs.
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Is Leasing allowed on land plots ?Under the legal framework, Leasing contracts are not permitted for land plots, however, it is allowed for open-air car parks and rural areas.
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Who owns the fixed asset during the contract ?Any fixed asset (mobile or immovable) obtained through Leasing, remains the property of Alpha Leasing until the expiry of the relevant Leasing Contract at which time the ownership is transferred to the lessee, for a predetermined price (the last lease payment).
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When does the fixed asset return to the ownership of the business?After the smooth completion - repayment of the Contract.
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Is it possible to acquire the equipment prior to the scheduled duration?Yes, with the prepayment of the Contract or relative annex, as provided therein.
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Is it possible to acquire the property prior to the scheduled duration ?Yes, with the prepayment of the Leasing Contract after the first three years.
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What is the cost for ending a property Leasing contract?For the transfer of property due to the termination of the Contract, the selling price that is determined by the terms of the signed Leasing Contract will be taken into account. Moreover, the termination of the Leasing Contract is burdened with notary costs and transfer expenses.
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What about insurance and maintenance of the fixed asset?At the expense of the lessee, the objects of a Leasing Contract are insured with Alpha Leasing being listed as beneficiary.The conclusion of a maintenance contract is not mandatory for the lessee, who is, however, required to use and maintain the fixed asset in accordance with the manufacturer’s guidelines.
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Can fixed assets be added to an existing contract?By following simple procedures, the Customer is able to add assets to the existing Contract, upon submission of the relevant application and following the consent of Alpha Leasing.
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Can a Sale & Lease Back contract be concluded for fixed assets?Fixed assets owned by the interested party can also constitute a Leasing object with a Sale & Lease Back contract being concluded at book value or at the value resulting from the engineer’s relevant valuation.
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Is VAT financed?Our Company pays the VAT that is attributable to the supplier, without including it in the calculation of lease payments. It is repaid gradually, through Lease invoices.
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Is Leasing financed through the Development Law or the Investment Programmes?Yes, provided that the prerequisites set out by the law or programmes are applicable or the self-employed professional falls under this category. Our Company does not undertake the relevant process required to submit a file.
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Where can I obtain information?• From our Officers, for questions about technical leasing issues
• By filling in our Contact Form.
• At the nearest Branch of Alpha Bank or, in the case of cooperation, at the
competent Business Centre or Corporate Banking Division
