Spain's debt collection laws provide a framework that's more creditor-friendly than most overseas businesses expect. The legal tools exist, the court procedures work, and documented commercial debts can be enforced. What makes Spain challenging isn't the law — it's the gap between what the law prescribes and how the commercial market actually operates.
Understanding this gap is what separates creditors who recover from those who don't.
The Key Legislation
Ley 15/2010 (Late Payment in Commercial Transactions). The cornerstone of commercial debt collection in Spain. Mandates a maximum 30-day payment term for commercial transactions (extendable to 60 days by agreement). Establishes statutory late payment interest — currently ECB base rate plus 8 percentage points — that accrues automatically from the day after the payment deadline. Also provides for a minimum €40 fixed recovery cost per unpaid invoice. In theory, this law eliminates late payment in commercial transactions. In practice, average B2B payment in Spain exceeds 80 days.
Ley de Enjuiciamiento Civil (LEC) — Civil Procedure Act. Governs the court procedures used to enforce commercial debts. The key procedures for international creditors:
Procedimiento monitorio — Spain's fast-track payment order for documented debts. No amount limit. Court reviews documentation, orders the debtor to pay within 20 days or contest. Uncontested claims produce enforceable judgments in 30–45 days. The primary tool for commercial debt recovery in Spain.
Juicio ordinario — Standard civil proceedings for contested claims above €6,000. Full adversarial process with evidence exchange, hearings, and judicial decision. Timeline: 6–18 months.
Juicio verbal — Simplified proceedings for contested claims under €6,000. Faster and less formal than juicio ordinario.
Código Civil (Civil Code). Establishes the legal foundations for contractual obligations, interest, and the statute of limitations for commercial claims. Key provision: the general limitation period for commercial claims is 5 years from the date the debt becomes enforceable.
Statute of Limitations
The clock matters. In Spain, the limitation periods for debt recovery are:
Commercial debts (B2B): 5 years from the date the obligation becomes due. This is the period most relevant to international creditors with unpaid invoices. After 5 years, the debt becomes unenforceable through Spanish courts.
The limitation period can be interrupted (restarting the clock) by filing a court claim, by a formal extrajudicial demand (documented via burofax), or by any act of the debtor that acknowledges the debt (partial payment, written acknowledgment, or a request for more time). Smart creditors ensure they interrupt the limitation period early in the collection process.
Interest and Recovery Costs
Under Ley 15/2010, creditors are entitled to statutory interest from the day after the contractual payment deadline. The rate is the ECB base rate plus 8 percentage points — currently approximately 12%. This interest accrues automatically; you don't need a contract clause to claim it (though having one strengthens your position).
Additionally, each unpaid invoice accrues a minimum €40 fixed recovery cost. For large debts, this is symbolic. For portfolios of smaller debts, it adds up.
Spanish courts consistently award these statutory entitlements to creditors who claim them properly. Many overseas creditors don't claim statutory interest, leaving significant money on the table.
Enforcement Mechanisms
Once you hold an enforceable judgment (through monitorio or juicio ordinario), Spain's enforcement tools include:
Embargo de cuentas — bank account garnishment. The court orders the debtor's bank to freeze and transfer funds. Effective for solvent debtors with identifiable bank accounts.
Embargo de bienes — seizure of physical assets, including equipment, vehicles, and inventory.
Anotación preventiva — registration of charges against the debtor's real property, preventing sale without satisfying the debt.
Embargo de créditos — seizure of the debtor's receivables from their own customers, redirecting payments to you.
The practical challenge isn't the existence of these tools — it's identifying which assets the debtor has and where they're held. This is where a local agency with investigative capability earns its value.
FAQ
Do Spanish debt collection laws apply to foreign creditors?
Yes. Spain's legal framework doesn't distinguish between domestic and foreign creditors. A US, UK, Canadian, or German company has the same legal rights and access to the same court procedures as a Spanish creditor. The practical barrier isn't legal standing — it's execution. Foreign creditors need local representation (attorney and procurador) to access the courts.
Can I charge interest on a debt if my contract doesn't mention it?
Yes. Ley 15/2010 provides statutory late payment interest for commercial transactions regardless of contractual provisions. However, having an explicit interest clause in your contract strengthens your position and simplifies the court's assessment. For future contracts with Spanish companies, include a clear interest provision referencing Ley 15/2010.
lnterStation BPO
The Most Combative Debt Collection Agency. Collecting worldwide early, disputed and undisputed cross-border accounts since 1998. If you need assistance dealing with past-due accounts in as quick and efficient a manner as possible, we can provide the solutions to meet your needs.
