Spanish debt recovery law is built for creditors who use it. The legal tools are effective, the procedures are structured, and documented commercial debts can be enforced through courts that handle these cases routinely. The challenge for overseas creditors isn't that the law is hostile — it's that exercising your rights requires navigating a system designed for people who speak Spanish and have a procurador.
This guide covers the legal framework that governs commercial debt recovery in Spain: the statutes that create your rights, the procedures that enforce them, and the practical considerations that determine whether you'll actually get paid.
The Statutory Framework
Ley 15/2010 (Late Payment in Commercial Transactions). Spain's implementation of EU Directive 2011/7/EU. Establishes mandatory 30-day payment terms for commercial transactions (extendable to 60 days by written agreement). Creates automatic entitlement to statutory interest (ECB base rate + 8 percentage points, currently approximately 12%) from the day after the payment deadline. Provides a minimum €40 fixed recovery cost per unpaid invoice. This law is the foundation of commercial debt collection in Spain. Detailed analysis here.
Código Civil. Establishes the general legal framework for contractual obligations, including the pacta sunt servanda principle (agreements must be honoured), rules governing interest, and the statute of limitations. Key provision: 5-year limitation period for commercial claims (Art. 1964), running from the date the obligation becomes enforceable.
Código de Comercio (Commercial Code). Supplements the Civil Code for commercial transactions. Governs mercantile obligations, commercial contracts, and aspects of commercial debt that don't fall under specific legislation.
Ley de Enjuiciamiento Civil (LEC). The procedural law that governs how debts are enforced through Spanish courts. Provides the specific court procedures used in debt recovery: monitorio, juicio ordinario, juicio verbal, and enforcement mechanisms.
Court Procedures for Debt Recovery
Procedimiento monitorio. The primary tool for commercial debt recovery. No amount limit. Creditor files a petition supported by documentary evidence (contracts, invoices, delivery proof). Court reviews documentation and issues a payment order. Debtor must pay within 20 days or file a formal objection. Uncontested claims produce enforceable judgments in 30–45 days. The monitorio is efficient, relatively inexpensive, and designed for documented debts — which is what most commercial receivables are. Full monitorio process here.
Procedimiento cambiario. Specific procedure for debts evidenced by bills of exchange (letras de cambio), promissory notes (pagarés), or cheques. Faster than the monitorio for qualifying instruments because the evidentiary threshold is lower — the instrument itself constitutes sufficient proof.
Juicio ordinario. Standard civil proceedings for contested claims above €6,000. Full adversarial process: written pleadings (demanda and contestación), preliminary hearing (audiencia previa), trial (juicio), and judgment. Timeline: 6–18 months. Used when the debtor contests the monitorio or when the claim requires full litigation from the outset.
Juicio verbal. Simplified proceedings for contested claims under €6,000. Faster and less formal than juicio ordinario. Suitable for smaller commercial debts where the debtor has filed an objection.
Enforcement Mechanisms
A judgment (or uncontested monitorio order) becomes an enforceable title (título ejecutivo). Spanish enforcement law provides:
Embargo de cuentas bancarias. Bank account garnishment. The court orders the debtor's bank to freeze and transfer funds up to the judgment amount plus costs and interest. Requires identifying the debtor's bank — which is where local investigative capability matters.
Embargo de bienes muebles. Seizure of movable property: vehicles, equipment, inventory, machinery. Requires physical identification and seizure, which is why enforcement in Spain works best with agents who have local presence.
Embargo de créditos. Seizure of the debtor's receivables from their own customers. Payments that would go to the debtor are redirected to you instead.
Anotación preventiva de embargo. Registration of a charge against the debtor's real property in the Registro de la Propiedad. Prevents sale or encumbrance without satisfying the debt. Effective for debtors with property assets.
Limitation Periods and Interruption
The 5-year limitation period for commercial claims runs from the date the payment obligation becomes enforceable. After 5 years, the debt is time-barred — you lose the right to enforce through Spanish courts.
The clock can be interrupted (and restarted) by: filing a court claim, sending a formal extrajudicial demand documented via burofax, or any act by the debtor acknowledging the debt (partial payment, written acknowledgment, request for extension). Smart collection strategy includes early limitation interruption — even a single burofax demand restarts the 5-year clock.
FAQ
Does Spanish law favour creditors or debtors?
The statutory framework favours creditors who use it. Ley 15/2010 creates strong payment obligations, automatic interest, and recovery cost entitlements. The monitorio procedure provides fast enforcement for documented debts. The enforcement mechanisms are comprehensive. Where debtors gain advantage is through delay — contesting claims, negotiating during proceedings, and exploiting the time it takes for courts to process cases. A creditor who acts early, documents well, and maintains pressure through the system has the law on their side.
Can I enforce a foreign court judgment in Spain?
EU judgments can be enforced in Spain through the Brussels Regulation (recognition and enforcement) or the European Enforcement Order (for uncontested claims). Non-EU judgments require exequatur proceedings — a Spanish court process that recognises the foreign judgment as enforceable in Spain. For most commercial debts, filing directly in Spanish courts (via monitorio) is faster and cheaper than enforcing a foreign judgment.
María Solé
💥 Madrid-based Legal Counsel / Spanish Commercial Law & Cross-Border Enforcement Specialist
