Spain's debt collection process follows a structured path that's more predictable than most foreign creditors expect. The unpredictability isn't in the procedure — it's in the debtor's behaviour. The procedure itself is well-defined, tested across millions of commercial cases, and — when the documentation is solid — weighted in the creditor's favour.
The Extrajudicial Phase: Where Most Debts Get Resolved
Step 1: Formal demand. A written demand from your collection agency, establishing that the debt is under professional management and setting a clear payment deadline. In Spain, sending this via burofax (certified mail with legal evidentiary weight) creates the documented proof of delivery that courts later require. The demand references the specific debt, accrued statutory interest under Ley 15/2010, and the legal consequences of non-payment.
Step 2: Direct debtor contact. Phone calls and, where appropriate, visits to the debtor's registered office. Spanish commercial culture responds to personal contact in a way that written correspondence alone often doesn't achieve. A call from a locally-based agent — in Spanish, referencing specific legal provisions — carries weight that an email from another continent simply cannot match.
Step 3: Negotiation and payment structuring. Many debtors in Spain don't dispute the debt — they dispute the timing. Cash flow constraints, seasonal revenue patterns, and the gap between Spanish payment culture and contractual terms mean that a structured payment plan often produces full recovery where a demand for immediate full payment produces nothing. Experienced agents structure these agreements with documented instalments, interest provisions, and default clauses that protect your position if the debtor reneges.
Step 4: Pre-legal escalation. A formal demand from a Spanish attorney, referencing the specific legal proceedings that will follow. This is the last step before court filing and resolves a significant proportion of cases that resisted amicable collection. The cost is typically €300–€800 and the signal value is substantial.
The Judicial Phase: When the Courts Get Involved
Procedimiento monitorio (payment order procedure). Spain's primary tool for recovering documented commercial debts. Filing requires the contract, invoices, proof of delivery, and evidence of the outstanding balance. The court reviews the documentation, and if satisfied, orders the debtor to pay within 20 days or file a formal objection. Uncontested monitorios produce enforceable judgments in roughly 30–45 days from filing.
Procedimiento cambiario. An alternative procedure available when the debt is evidenced by a bill of exchange (letra de cambio), promissory note (pagaré), or cheque. It provides faster processing and immediate precautionary measures, including asset seizure at the time of filing. If your Spanish commercial relationship involves these instruments, the cambiario procedure offers significant advantages.
Juicio ordinario / juicio verbal. Standard civil proceedings for contested debts. Juicio verbal handles claims under €6,000; juicio ordinario handles larger amounts. These are full adversarial proceedings with evidence exchange, hearings, and judicial decisions. Timeline: 6–18 months. Costs: significantly higher than monitorio. Reserved for cases where the debtor has filed a substantive objection.
Enforcement: Turning Judgments Into Money
An enforceable judgment opens the door to Spain's enforcement mechanisms: bank account garnishment (embargo de cuentas), seizure of receivables, attachment of physical assets, and charges against property. The enforcement process requires identifying the debtor's assets — which is where your agency's local knowledge and investigative capability become critical.
For solvent debtors, enforcement is usually straightforward: the judgment itself creates enough pressure to prompt payment. For debtors in financial difficulty, enforcement is a race against other creditors and the potential onset of insolvency proceedings.
FAQ
How long does the entire process take from start to finish?
Best case (amicable resolution): 30–90 days. Typical case (amicable + monitorio): 60–120 days. Contested case (full litigation): 8–24 months. Enforcement complications can add 3–12 months. The amicable phase is where most debts resolve, which is why early engagement with a professional agency produces the fastest outcomes.
What documentation do I need to start the process?
The contract or purchase order, all invoices, proof of delivery or service completion, and the full correspondence trail with the debtor. The stronger and more complete your documentation, the faster every stage of the process moves — from initial agency assessment through to court proceedings if needed.
Alan Perez
💥 World citizen / 🛵 Tourist, Senior Debt Collection Manager, Business Debt Claims Expert
