Debt Recovery Agency Costs: What You'll Actually Pay to Collect in Spain

The CFO's question is always the same: "What will it cost to recover this debt?" The honest answer is "it depends," but that's not useful. Here's the actual cost structure for recovering commercial debts from Spanish companies, broken down by phase, so you can make the calculation before you make the call.

Amicable Collection: 5–15% of Recovered Funds

The amicable phase — professional debtor contact, formal demands, field visits, negotiation — operates on no-win, no-fee terms. You pay a commission only on money that actually reaches your account. If recovery is zero, the cost is zero.

Commission rates for Spanish commercial debts typically fall within these ranges:

Debts under €25,000: 10–15%. Higher percentage because the absolute fee is modest — even at 15%, the agency's revenue on a €20,000 recovery is €3,000, which needs to cover agent time, field visits, and administrative costs.

Debts €25,000–€100,000: 7–12%. The sweet spot for most agencies. Enough revenue to justify significant effort, low enough to make the economics compelling for you.

Debts €100,000–€500,000: 5–8%. Larger debts attract lower percentages because the absolute fee is substantial. A 6% commission on €300,000 is €18,000 — more than enough to fund intensive collection efforts.

Debts above €500,000: 3–6%. Negotiable based on complexity, documentation quality, and debtor profile. At this level, the agency may propose a hybrid model with a reduced commission plus fixed legal fees.

The key variables: debt age (older debts command higher commissions because they're harder to collect), documentation quality (strong documentation reduces risk for the agency), and debtor solvency (solvent debtors with identifiable assets are lower-risk cases).

Pre-Legal Attorney Demand: €300–€800

A formal demand from a Spanish attorney, sent via burofax, referencing specific legal provisions and setting a payment deadline. This is a fixed cost, not a percentage. Some agencies include this in their amicable phase process at no additional charge; others bill it separately. Ask before you sign.

This step resolves a meaningful proportion of debts that resisted amicable collection. At €500 against a €100,000 debt, the return on investment is extraordinary when it works.

Monitorio Filing: €1,000–€5,000

Spain's fast-track payment order procedure. The cost includes attorney preparation, filing fees, and procurador (court representative) costs. Scales with claim amount because filing fees are proportional. For a €50,000 debt, expect approximately €2,000–€3,000 total legal cost.

This is separate from the amicable phase commission. If the monitorio succeeds, you pay both the legal costs and the commission on the recovered amount. Factor both into your cost-benefit calculation.

Full Civil Proceedings: €3,000–€15,000

Juicio ordinario for contested claims above €6,000. The range is wide because costs depend on claim complexity, number of hearings, expert witnesses, and whether the case settles during proceedings. A straightforward contested debt with strong documentation: €3,000–€6,000. A complex commercial dispute with expert evidence: €8,000–€15,000.

Timeline: 6–18 months. This is the stage where the cost-benefit analysis becomes critical. Legal proceedings are economically viable for debts above €15,000–€20,000 with strong documentation and a solvent debtor. Below that threshold, the expected recovery may not justify the legal investment.

Enforcement: €500–€3,000

After obtaining a judgment, enforcement actions (bank garnishment, asset seizure, property charges) involve additional attorney time and court fees. For straightforward enforcement against a solvent debtor: €500–€1,500. For complex enforcement requiring asset tracing: €1,500–€3,000.

The Total Cost Calculation

Here's how the numbers work for a typical €100,000 commercial debt, 90 days overdue, with solid documentation:

Best case (amicable resolution): €100,000 recovered × 8% commission = €8,000 cost. Net recovery: €92,000.

Typical case (amicable + monitorio): €100,000 recovered × 8% commission (€8,000) + €3,000 legal costs = €11,000 total cost. Net recovery: €89,000.

Complex case (full litigation): €85,000 recovered (partial settlement) × 8% commission (€6,800) + €8,000 legal costs = €14,800 total cost. Net recovery: €70,200.

Compare any of these outcomes to writing off €100,000. Professional recovery — even in the complex scenario — produces dramatically better results than inaction.

FAQ

Are there any upfront costs?

For the amicable phase: no. Genuine no-win, no-fee agencies don't charge case opening fees, administration fees, or file processing fees. If an agency wants money before they've recovered anything, the model isn't truly contingency-based. Legal costs (monitorio filing, civil proceedings) may require advance payment or may be recoverable from the debtor in successful cases.

Can I recover the agency's costs from the debtor?

Legal costs (attorney fees, court costs) are typically recoverable from the debtor in successful Spanish court proceedings. The agency's commission is your cost of collection and is not recoverable from the debtor. Under Ley 15/2010, you're entitled to a minimum €40 fixed recovery cost per unpaid invoice, though this is symbolic for large debts.