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Foreign Debt Collection in Spain Made Simple

You Don't Need a Spanish Office to Collect a Spanish Debt

Foreign debt collection in Spain flowchart

Foreign creditors recover billions of euros annually from Spanish businesses. The process is more straightforward than most overseas CFOs expect — provided you understand which legal framework applies and how to engage the right local representation.

EU Creditors: Your Fast Lane

If your company is based in an EU member state, Regulation (EC) No 1896/2006 gives you access to the European Payment Order. This cross-border procedure creates an enforceable payment order recognised across all 27 member states, bypassing the need to re-litigate your claim in Spain. File in your home jurisdiction, and the order is enforceable directly against your Spanish debtor's assets.

For debts up to €5,000, the European Small Claims Procedure (Regulation 861/2007) offers an even simpler path — no lawyer required, conducted entirely in writing, and enforceable across the EU without additional proceedings.

Non-EU Creditors: The Spanish Domestic Route

US, Canadian, and UK creditors don't have access to EU enforcement mechanisms, but Spanish courts are fully accessible to foreign claimants. You'll need a licensed Spanish collection agency or law firm to act as your local representative — Spanish court procedure requires a procurador for court filings and an abogado for legal arguments.

The domestic process starts identically: formal demand via burofax, followed by the monitorio fast-track procedure for claims up to €250,000. Your contracts and invoices in English are admissible with certified Spanish translation. Physical presence in Spain is not required at any stage.

Enforcing a Foreign Court Judgment

Already have a judgment from your home country? Spain recognises foreign judgments through the exequatur procedure — a judicial process that validates the foreign ruling for enforcement on Spanish territory. EU judgments benefit from automatic recognition under Regulation 1215/2012 (Brussels I Recast). Non-EU judgments require a separate validation proceeding, which typically takes 3 to 6 months.

Once recognised, enforcement follows standard Spanish procedures: embargo on bank accounts, property liens, and asset seizures. The enforcement court treats a validated foreign judgment identically to a domestic one.

The Documentation That Matters

Foreign debt collection in Spain succeeds or fails on paperwork. The essentials: original contracts or purchase orders, invoices showing amounts and due dates, proof of delivery or service completion, record of prior payment demands, and certified translations of all documents. A well-prepared file reduces the monitorio process from months to weeks.

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