The lease payments are counted as operating expenditure. The lessor depreciates the asset. In most European countries leasing depends on the taxation system. It is here that in many countries leasing shows its advantages compared with other forms of finance. A stable tax system has allowed tax advantages to be determined for a period of several years and this has given the leasing industry time to develop steadily.
Every state has a limited number of incentives encouraging investment.
In Western economies the tax regime is the key factor for influencing economic growth. Extremely high taxes are a barrier to investment. Money given directly to the investor, encouraging the people to invest because the costs of investment are lower. Also very important are the depreciation periods for assets. Here the periods have to be realistic.