Overview
As part of its efforts to enhance transparency, strengthen consumer protection, improve supervisory efficiency, and modernise the regulatory framework in line with European standards, North Macedonia has adopted a new Law on Financial Leasing (“Financial Leasing Law”), which entered into force on 6 July 2026.
The new legislation introduces several significant reforms affecting financial leasing providers and users, with a particular focus on corporate governance, supervisory mechanisms, contractual transparency, and market integrity.
Key Changes
Among the key changes are:
- Greater transparency in leasing agreements – financial leasing contracts must now include clearly defined mandatory elements, including a comprehensive disclosure of all fees and charges associated with the lease. The Financial Leasing Law also permits financial leasing agreements to be concluded electronically, provided that the applicable requirements governing electronic documents, electronic identification, trust services, anti-money laundering, and personal data protection are satisfied.
- Enhanced rights for lessees – lessees are now entitled to repay their outstanding obligations, in whole or in part, at any time without incurring additional charges. Early repayment also entitles the lessee to a proportional reduction of the total costs for the remaining term of the agreement.
- Stronger consumer protection – financial leasing providers may no longer use the leased asset as collateral without the lessee’s prior written consent. Such consent must be provided before a notary, in a separate declaration distinct from the leasing agreement and general terms and conditions and must clearly explain the legal consequences of granting the consent.
- Improved corporate transparency – financial leasing providers are required to publish their annual financial statements, together with the independent auditor’s report and opinion, on their websites, enabling prospective clients to make better-informed decisions before entering into a leasing relationship.
- Stronger regulatory oversight and financial stability – the Financial Leasing Law strengthens the supervisory framework through updated misdemeanour provisions and increases the minimum share capital requirement for financial leasing providers from MKD 6 million (approximately EUR 97,000) to MKD 30 million (approximately EUR 488,000), reinforcing the sector’s financial resilience.
- Enhanced governance and AML compliance – in line with the recommendations of the Council of Europe’s MONEYVAL Committee, the Financial Leasing Law introduces suitability and fit-and-proper requirements for founders and members of the management bodies of financial leasing providers, strengthening governance standards and supporting efforts to prevent money laundering and terrorist financing.
Outlook
For leasing customers, the Financial Leasing Law enhances transparency and consumer protection by requiring clearer contractual terms, greater disclosure of fees and costs, stronger regulatory safeguards, and higher standards of conduct from leasing providers. It also provides a clearer framework for early repayment rights where prescribed by law.
For leasing companies, the Financial Leasing Law introduces a more comprehensive regulatory regime, including stricter licensing requirements, enhanced corporate governance and risk management standards, strengthened compliance and reporting obligations, and more rigorous fit-and-proper requirements for managers and significant shareholders.
Transitional Provisions
The Financial Leasing Law provides transitional periods to allow existing financial leasing providers to align their operations with the new regulatory framework. Providers are required to comply with the new fit-and-proper requirements for management bodies within six months, the new contractual and early repayment requirements within three months, and the increased minimum share capital requirement of MKD 30 million within twelve months of the Financial Leasing Law’s entry into force. Failure to comply with the prescribed deadlines may result in the revocation of the provider’s licence. Existing financial leasing agreements and administrative proceedings initiated before the Financial Leasing Law entered into force will continue to be governed by the previous Law on Financial Leasing, while the implementing secondary legislation is to be adopted within 120 days.
FAQ
Does the Financial Leasing Law apply to existing leasing agreements?
No. Financial leasing agreements concluded before the Financial Leasing Law entered into force will continue to be governed by the previous Law on Financial Leasing.
Can financial leasing agreements now be concluded electronically?
Yes. The Financial Leasing Law expressly permits electronic execution of leasing agreements, provided the applicable legal requirements for electronic identification, trust services, anti-money laundering, and data protection are met.
What is the most significant change for leasing providers?
The new law introduces a more comprehensive regulatory framework, including higher capital requirements, enhanced governance standards, stricter fit-and-proper requirements for management, and increased regulatory oversight.
What is the most significant change for lessees?
Lessees benefit from greater contractual transparency, enhanced consumer protections, and the right to repay their leasing obligations early without additional charges, together with a proportional reduction of the remaining leasing costs.
What should financial leasing providers do next?
Providers should assess whether their governance arrangements, internal policies, standard documentation, and capital structure comply with the new requirements and ensure implementation within the applicable transitional deadlines.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
