Unpaid Invoice From a Spanish Company? How Debt Recovery Works in Spain

You've sent the reminders. You've followed up by email, maybe by phone. And the Spanish company that owes you money has simply stopped answering.

It's easy to think that silence means the debt is gone, especially with the distance and an unfamiliar legal system in the way. Usually it isn't. Spanish law does not distinguish between a domestic creditor and a foreign one: the same court procedure applies, the same evidence rules apply, and the same enforcement measures are available once you have a judgment.

How debt recovery actually works in Spain

Step 1: The formal demand

The process almost always starts with a Burofax, Spain's certified post service. It isn't just a strongly worded letter. Legally, it proves four things a court will later care about: who sent it, who received it, exactly what it said, and exactly when it was delivered. That matters for two reasons. First, if the case ends up in front of a judge, you need proof that you actually demanded payment before suing. Second, sending it resets the clock on how long you have to claim the debt. In Spain, commercial debts expire after five years, and a properly sent demand starts that period again from zero.

Step 2: If there's no response, the claim goes to court

If the debtor doesn't pay after the demand, your lawyer files an order for payment claim (procedimiento monitorio) with the court in the debtor's location. Since 3 April 2025, a documented attempt at out-of-court negotiation has been a condition of admissibility in Spanish civil proceedings, and in the order for payment procedure it has to be evidenced in the initial filing itself rather than later on. Your lawyer handles that as part of building the file, so it adds a step rather than a burden on your side. Beyond that, you only need to show at this stage that the debt is real, using invoices, delivery notes, or any signed document. The court then formally notifies the debtor, who has 20 business days to respond.

Step 3: What happens next depends entirely on what the debtor does

There are three possible outcomes.

If the debtor pays, the case closes and you recover your money. If the debtor does nothing within those 20 days, the court issues an enforceable order in your favour. Your lawyer can then move directly to enforcement, freezing bank accounts and seizing assets, without a full trial.

If the debtor objects, the case passes to a lawsuit. Claims up to €15,000 go through a faster hearing (juicio verbal), and larger claims go through ordinary proceedings, with a full trial. This is the stage where it matters most that your lawyer actually litigates cases.

One caveat on the route above. If the debtor is already in insolvency proceedings, the claim does not go to the ordinary civil court at all: it is filed as a credit in the insolvency, heard by the commercial courts, and both the timetable and the prospects of recovery change with it. Checking the debtor's position on the Public Insolvency Register before filing is part of the initial review.

A second route if you are based in the EU

For cross-border claims inside the Union there is an alternative to the Spanish procedure: the European Order for Payment under Regulation (EC) No 1896/2006, filed on standard forms and enforceable in any member state without a separate recognition procedure. Spanish law expressly exempts it, and the European Small Claims Procedure, from the pre-action negotiation requirement, which can make it the faster route where the debtor has already shown it will not engage. It is not automatically the better one. If the debtor objects, the matter still transfers to the ordinary Spanish courts, and the domestic route gives you more control over how the file is built for that eventuality. Which of the two fits is a decision taken with your documents in front of us.

When you might not need us

If the amount is small, a few hundred euros or a minor billing dispute, you can handle it yourself without hiring a lawyer. Litigation makes sense once the amount and the debtor's behaviour justify it, and we'll tell you honestly, in the first conversation, whether that's true in your case.

What it costs, and when it's worth pursuing

Our fee

We work on a fixed fee, agreed before we start. Civil litigation of this kind starts from €2,000 plus VAT, covering the whole process from the mandatory pre-litigation attempt at settlement through to judgment, whatever route the case takes. You won't get a bill that grows because the debtor decided to fight it. The procurador's fees are not part of ours. You receive a single opening invoice setting out our fee, the procurador, court fees and any other professional involved as separate and precise items, exactly as they appear in the proposal and in the engagement letter.

A practical threshold

We take on court work from €10,000 at stake upwards. Below that figure, once legal fees and the risk on costs are taken together, litigation rarely pays off for the client, and we'll tell you plainly if that's the case for you before you commit to anything.

Interest most creditors don't claim

Where the debt arises from a commercial transaction between businesses, Spanish law entitles you to statutory late payment interest on top of the principal, unless your contract sets a rate of its own. The figure is the European Central Bank's main refinancing rate plus eight percentage points under Article 7 of Ley 3/2004, and it is republished every six months: for the second half of 2026 it stands at 10.40% annually. Article 8 of the same law adds a fixed €40 in recovery costs per unpaid invoice, with no receipts required. Most foreign creditors don't know either of them exists, so they never ask. We always claim them for our clients.

If you're dealing with an unpaid invoice from a Spanish company right now, the fastest way to find out where you stand is a short conversation. We offer a virtual consultation for €90, deducted from your first invoice if we take on your case, where we look at your situation and tell you honestly whether it's worth pursuing.

Frequently asked questions

How long does debt recovery take in Spain?

An uncontested claim, where the debtor pays or stays silent, typically resolves within two to four months. If the debtor objects and the case becomes a lawsuit, it usually takes six months to a year, depending on the court's caseload.

Is there a minimum amount for the order for payment procedure?

No. You can file a claim of any size. What has a threshold is whether you need a lawyer to do it (only mandatory above €2,000) and whether we recommend pursuing it through full litigation (we generally advise against it below €10,000, once costs and time are weighed against the recovery).

What if the Spanish debtor has no assets?

This is worth checking before you file, not after you win. A judgment is only as valuable as the debtor's ability to pay it. As part of our initial review, we look at what the debtor actually owns, property, vehicles, known accounts, so you go in knowing whether a win is actually collectible.

Do I need to travel to Spain to pursue this?

No. The whole process can be handled remotely under a power of attorney, which you can grant before a notary in your own country with an apostille, or electronically before the Spanish court. Hearings, when they happen, can often be attended by videoconference.

What documents do I need to prove the debt?

Spanish courts don't ask for an exhaustive case file at the filing stage, just enough to show the debt is real: invoices, delivery notes, signed contracts, or written correspondence where the debtor acknowledged what they owe. The stronger that paper trail, the smoother the process.

Is the interest automatic, or do I have to request it?

It accrues automatically under Spanish law from the day the payment becomes overdue. What isn't automatic is the court awarding it: a judge won't include it in the judgment unless it's specifically claimed in the lawsuit. We include it as standard in every commercial debt claim we handle, along with the fixed €40 recovery cost.