Equipment Lease
Equipment lease for foreign companies with a Dutch branch
Updated
International companies starting operations in the Netherlands often need machinery, vehicles or fixtures here. Equipment lease through the Dutch branch is then a logical route.
Branch or Dutch subsidiary
A foreign company can register a branch in the Netherlands with the Chamber of Commerce or set up a Dutch subsidiary (bv). For a Dutch lender, such a registration is usually a requirement.
What does the lender assess?
A new branch has no local figures yet. The lender then looks at the figures of the parent company. Sometimes they ask for a guarantee from the parent.
Benefits of leasing locally
- contract and payments in euros;
- local service and maintenance;
- assets that meet Dutch requirements;
- no cross-border financing needed.
Vehicles too
Besides machinery you can finance company cars and vans. See the range of commercial vehicles. Read also about equipment lease versus a loan.
Frequently asked questions
Can the parent company sign the lease?
Usually the Dutch branch or bv signs the contract, possibly with a guarantee from the parent company.
Does the contract have to be in Dutch?
The contract is usually in Dutch. Ask for an explanation in English if needed.
What about VAT?
A Dutch branch with a VAT number can usually reclaim VAT on the lease instalments or purchase. Have a tax adviser check this.
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