Commercial debt recovery in Spain: from the demand letter to the European Payment Order

For many businesses, recovering unpaid invoices is a cash-flow matter before it is a legal one, yet success depends on early legal decisions: establishing that the debt is enforceable, serving a proper demand and choosing the right procedure according to the amount and the debtor's domicile. Spanish law offers the commercial creditor a particularly swift route — the order for payment procedure — and, where the debtor is resident in another EU Member State, its European equivalent. Knowing both, together with the late-payment interest the law grants, is what turns an unpaid invoice into an actual recovery.

When can a business claim an overdue debt?

A business may claim a debt that is due, liquidated and enforceable. A debt is due once the agreed payment date has passed; it is liquidated once its amount is fixed in money; and it is enforceable once it is not subject to a pending condition or term. With those three requirements met, the creditor may demand payment and, failing that, go to court.

The claim is time-barred. Under Article 1964 of the Civil Code, personal actions with no special limitation period lapse five years after the obligation became enforceable. If that period passes without action, the debtor may plead limitation and render the debt unenforceable. The period is interrupted — and starts again from zero — by any out-of-court claim by the creditor, under Article 1973 of the Civil Code. Acting early is therefore not only a matter of effectiveness but of preserving the right itself.

The out-of-court demand: the burofax as a first step

Before suing, it is advisable to demand payment in a reliable form. A reliable demand is one that leaves certified evidence of its content, its date and its receipt by the debtor; in practice this is done by burofax — a certified postal telegram with proof of delivery and certification of its text. Its value is threefold: it interrupts the limitation period, places the debtor in default — which triggers late-payment interest — and secures evidence of the claim for any later proceedings.

A prior demand also allows recovery without litigation where the debtor is solvent and the non-payment stems from oversight or a temporary liquidity problem, in which case an acknowledgement of debt with a payment schedule can be negotiated. How to prioritise each unpaid invoice by the debtor's solvency and the age of the debt is developed in our commercial debt recovery practice. Where the demand goes unanswered, the preferred court route is the order for payment procedure.

The order for payment procedure: the preferred route for documented debts

The order for payment procedure (proceso monitorio), governed by Articles 812 and following of the Civil Procedure Act (Law 1/2000), is designed to claim monetary debts that are due and enforceable where the creditor can evidence them with a document: invoices, delivery notes, contracts, certifications or emails reflecting the relationship. Since the reform introduced by Law 37/2011, there is no upper limit on the amount.

Its effectiveness lies in its mechanics. Once the petition is filed before the Court of First Instance of the debtor's domicile, the debtor is required to pay or to appear stating the reasons for refusal within twenty days, under Article 815 of the Civil Procedure Act. Three outcomes then follow. If the debtor pays, the matter ends. If the debtor neither pays nor opposes, an order closing the procedure is issued and enforcement begins, under Article 816. And if the debtor opposes, the matter is resolved through the oral trial (juicio verbal) where the debt does not exceed 6,000 euros, or the ordinary trial (juicio ordinario) where it does, under Article 818.

The European Payment Order: claiming against a debtor in another EU State

Where the debtor is domiciled in another EU Member State, the creditor has a dedicated instrument: the European Payment Order procedure, established by Regulation (EC) No 1896/2006. It applies to cross-border cases in civil and commercial matters — those in which at least one party is domiciled in a Member State other than that of the court seised — and is conducted through standard forms, with no need to travel.

The court issues the European order for payment, as a general rule, within thirty days. The debtor then has a further thirty days to lodge a statement of opposition; if it does, the matter proceeds under the ordinary civil procedure of the State of origin, and if not, the order is declared enforceable. Its great advantage is that this title circulates and is enforced in any other Member State without an intermediate recognition procedure. International jurisdiction is determined under Regulation (EU) No 1215/2012 (Brussels I bis), whose Article 7.1 allows a claim in contractual matters to be brought before the court of the place of performance of the obligation. For small cross-border claims there is also the European Small Claims Procedure of Regulation (EC) No 861/2007, applicable up to 5,000 euros.

Late-payment interest and recovery costs (Law 3/2004)

In transactions between businesses, Law 3/2004 of 29 December, on combating late payment in commercial transactions, strengthens the creditor's position automatically, with no need for agreement. Its Article 7 sets late-payment interest equal to the rate applied by the European Central Bank to its main refinancing operation plus eight percentage points; for the first half of 2026 that statutory rate stands at 10.15% per year. Its Article 8 further grants a minimum indemnity of 40 euros for each unpaid debt as recovery costs, added to the principal without any express claim, together with other duly evidenced costs. The payment period, absent agreement, is thirty calendar days under Article 4.1, and clauses imposing abusive periods are void.

Interim measures and enforcement: securing recovery

A title is of little use if the debtor has emptied its assets in the meantime. To prevent this, the creditor may seek interim measures — notably the preventive attachment (embargo preventivo) of assets — under Articles 721 and following of the Civil Procedure Act, where it shows a prima facie case and a risk that delay will frustrate enforcement. Once the title is obtained — the order for payment, the enforceable European order or the judgment — enforcement is granted to attach and realise the debtor's assets. A creditor that already holds an enforceable instrument, such as a public deed or an arbitral award, may proceed directly to enforcement without a prior declaratory action.

Frequently asked questions on debt recovery

What is the order for payment procedure?

It is the court procedure, governed by Articles 812 and following of the Civil Procedure Act, for claiming monetary debts that are due and enforceable and evidenced by a document. It has no upper limit and, if the debtor neither pays nor opposes within twenty days, enforcement begins directly.

Can I claim an unpaid debt from a foreign customer in the EU?

Yes. If the debtor is domiciled in another Member State, the European Payment Order procedure of Regulation (EC) No 1896/2006 allows you to obtain an order for payment enforceable across the Union without an intermediate recognition procedure.

What interest can a business charge on an unpaid invoice?

In commercial transactions between businesses, Law 3/2004 automatically grants late-payment interest at the European Central Bank rate plus eight points — 10.15% per year in the first half of 2026 — and a minimum indemnity of 40 euros for recovery costs.

How long do I have to claim a debt?

Personal actions with no special period lapse after five years under Article 1964 of the Civil Code. The period is interrupted by any reliable out-of-court claim, such as a burofax.

Is a burofax essential before suing?

It is not a procedural requirement, but it is strongly advisable: it interrupts the limitation period, places the debtor in default for interest purposes and secures evidence of the claim.

How we help you recover your debt at RCM Legal

There is a recurring difficulty in recovering unpaid invoices, and it is usually not a lack of documentation but delay in acting and the wrong choice of route: the limitation period runs out, an ordinary trial is used where an order for payment would have sufficed, or litigation is brought in Spain against an EU debtor while overlooking the European Payment Order. Every week of delay reduces the likelihood of recovery and raises the risk that the debtor becomes insolvent.

At RCM Legal, as commercial lawyers for debt collection in Murcia, Spain, we design and carry out commercial debt recovery from start to finish: a reliable demand by burofax, the national or European order for payment according to the debtor's domicile, the claim for late-payment interest under Law 3/2004, preventive attachment and enforcement of the title. If your business is accumulating unpaid invoices, in Spain or across the European Union, tell us about your case.