Leasing in Public Procurement 2026

Definition: Leasing in the sense of public procurement law refers to the transfer of assets for valuable consideration by a lessor to a public contracting authority for a limited period of time, where the contracting authority obtains the right of use without initially becoming the owner; under public procurement law, leasing is generally classified as a supply contract.

Last updated: January 2026 · Legal basis: Directive 2014/24/EU, BVergG 2018, GWB/VgV

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What is leasing in public procurement law?

Leasing is a form of financing in which a public contracting authority does not buy assets – such as vehicles, IT equipment or machinery – but uses them in return for regular instalments for an agreed period of time. Classifying leasing under public procurement law is not trivial, as the question arises whether it constitutes a supply contract, a service contract or no contract subject to procurement at all. According to the case law of the CJEU and the prevailing practice in Austria and Germany, leasing generally constitutes a supply contract within the meaning of public procurement law, provided the contracting authority can or must purchase the asset at the end of the leasing period.

Classification under public procurement law

The classification of leasing under procurement law follows the economic substance of the contract, not its civil-law designation.

The decisive question is whether:

• The leased asset becomes the property of the contracting authority at the end of the term (finance leasing → supply contract)
• There is a mere time-limited transfer of use without a purchase option (operating leasing → likewise classified as a supply contract, possibly as a service)

Art. 2 (1) no. 8 of Directive 2014/24/EU expressly defines supply contracts as contracts having as their object "the purchase, lease, rental or hire-purchase of products". Leasing is thereby explicitly assigned to the category of supply contracts.

Threshold calculation for leasing

For leasing contracts of indefinite duration or with a term exceeding twelve months, the total value over the entire term is decisive for the threshold calculation.

Specifically:

• For a fixed term: total value of all instalments plus residual value/purchase option
• For an indefinite term: monthly value multiplied by 48 (§ 14 (5) VgV; § 15 BVergG 2018)

Contracting authorities who choose leasing as an alternative to purchase must therefore ensure that the aggregate contract value does not unnoticed exceed the EU thresholds.

Leasing vs. purchase: strategic procurement considerations

The decision between purchase and leasing is primarily of a budget-law and economic nature, but must be implemented in compliance with public procurement law.

Leasing offers contracting authorities the following advantages:

• Easing the investment budget through periodic instalments
• Flexibility in the case of rapidly ageing assets (e.g. IT)
• Possibility to integrate maintenance and service services

If maintenance services are bundled with the lease, it must be examined whether a mixed contract exists that triggers separate procurement-law requirements.

FAQ

Is leasing always subject to public procurement? Yes, provided the contract value exceeds the applicable thresholds and no exemption applies. Below the EU thresholds, national procurement rules also apply.

Which procedure type must be used for leasing? In principle, the same as for supply contracts: open procedure, restricted procedure or – where the requirements are met – negotiated procedure.

Can leasing with a purchase option be tendered in compliance with procurement law? Yes, provided the purchase option is transparently disclosed in the procurement documents and included in the contract-value calculation.

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Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.