Recover a Commercial Debt in Spain

Unpaid invoices are a common problem for businesses and self-employed professionals in Spain. A client receives goods or services, the payment deadline passes, but the money never arrives.

In this situation, it is important not only to request payment but also to prepare the necessary evidence and choose the appropriate debt recovery procedure.

Spanish law allows businesses to recover commercial debts through out-of-court negotiations or legal proceedings. Here are the main steps involved.

When Can You Claim a Commercial Debt?

A commercial debt arises when a company or self-employed professional fails to pay for goods or services within the agreed period.

In Spain, for commercial transactions between businesses, if no payment deadline has been agreed, payment is generally due within 30 calendar days after the goods are received or the services are provided.

A different payment period may be established by contract, but it generally cannot exceed 60 calendar days.

Once the payment deadline has passed, the creditor can demand payment of the outstanding amount.

Before starting debt recovery proceedings, however, it is essential to confirm that the debt exists, the amount can be established and payment is legally due.

What Documents Are Needed to Recover a Debt?

Successful debt recovery largely depends on the available evidence. Proper documentation makes it easier to establish the validity of a claim.

The following documents are particularly useful:

• Contracts for the supply of goods or provision of services.
• Unpaid invoices.
• Delivery notes, completion certificates or proof that services were provided.
• Emails and other correspondence with the client.
• Evidence of partial payments or acknowledgement of the debt.

The absence of a written contract does not necessarily prevent debt recovery. For example, the provision of services may be demonstrated through invoices, correspondence and other supporting documents.

A legal review of these materials helps determine whether there is sufficient evidence to pursue the claim.

Out-of-Court Debt Recovery: The First Step

In many cases, commercial debts can be recovered without going to court.

The process often begins with a formal payment demand (requerimiento de pago), stating the amount owed, the grounds for the claim, the payment deadline and the possible consequences of continued non-payment.

However, important changes to Spanish legislation came into effect in April 2025.

Before initiating most civil and commercial court proceedings, creditors must first attempt to resolve the dispute through an appropriate dispute resolution mechanism, known as MASC (Medios Adecuados de Solución de Controversias).

This may involve direct negotiations, discussions between lawyers or other legally recognised dispute resolution methods.

It is essential to ensure that the attempt to reach an agreement is properly documented. A simple payment reminder may not always satisfy the legal requirements.

If the dispute cannot be resolved, the creditor may proceed with a court claim.

Procedimiento Monitorio: Recovering Unpaid Invoices Through the Courts

One of the most commonly used procedures for debt recovery in Spain is the procedimiento monitorio, a simplified judicial process designed to recover monetary debts supported by appropriate documentation.

It can be used when the debt:

• Is a monetary obligation.
• Is determined or can be precisely calculated.
• Is due and payable.
• Is supported by the documents required under Spanish law.

There is no general maximum amount for a claim under the national procedimiento monitorio.

The creditor submits an application together with evidence of the outstanding debt. If the application meets the legal requirements, the court issues a formal payment demand to the debtor.

Once the debtor has been formally notified by the court, they have 20 days to pay the debt or submit a reasoned objection.

It is important to understand that this procedure does not guarantee immediate payment. The outcome depends on the debtor’s response and the circumstances of the case.

Practical Example

A Spanish company provides services worth €12,000 to another business. The work is completed and an invoice is issued, but the client fails to pay within the agreed period.

The service provider has a contract, an invoice, evidence that the work was completed and correspondence with the client.

After completing the required pre-court dispute resolution attempt, the company may consider initiating a procedimiento monitorio.

If the debtor disputes the claim, the matter may need to proceed through the appropriate court proceedings.

What Happens If the Debtor Does Not Pay or Objects?

Once the court has issued the payment demand, there are three main possibilities.

The debtor pays the outstanding amount. The claim is satisfied and the procedure is concluded in accordance with the applicable rules.

The debtor submits an objection. If the debtor disputes the existence or amount of the debt, the case may proceed to the appropriate judicial proceedings.

The debtor neither pays nor objects. In this situation, the creditor may request enforcement of the debt.

Enforcement proceedings may involve the seizure of funds from bank accounts or other assets belonging to the debtor, subject to the applicable legal rules.

However, even a favourable court outcome does not guarantee that the debt will actually be recovered if the debtor has insufficient funds or assets.

Can You Claim Interest on Late Payments?

Yes. Spanish legislation provides for late payment interest on commercial debts.

Where the legal requirements are met, interest accrues automatically once payment becomes overdue, without the need for a separate payment reminder.

Depending on the contractual arrangements, the applicable interest rate may be the rate agreed between the parties or the statutory late payment interest rate.

For commercial transactions covered by the relevant legislation, creditors may also claim:

• A fixed compensation of €40 for debt recovery costs.
• Additional documented recovery expenses exceeding that amount, where permitted by law.

Therefore, the total claim may include not only the original debt but also accrued interest and legally recoverable costs.

What Is the Time Limit for Recovering a Debt in Spain?

The limitation period depends on the nature of the debt and the law applicable to the claim.

Under the general Spanish Civil Code, contractual claims without a specific limitation period are generally subject to a five-year limitation period.

However, Catalonia has its own civil law provisions. For example, certain claims relating to payment for services or completed work may be subject to a three-year limitation period.

It would therefore be incorrect to assume that every commercial debt in Spain can be claimed within five years.

The starting point of the limitation period and any circumstances affecting its calculation must also be considered.

If a client has failed to pay an invoice for an extended period, it is advisable to seek legal advice without unnecessary delay.

Legal Assistance with Commercial Debt Recovery in Spain

Recovering outstanding debts requires more than knowledge of court procedures. It also involves evaluating the available evidence, assessing the debtor’s financial situation and determining the realistic prospects of recovering the money.

Lusa Legal is a Barcelona-based law firm with over 20 years of experience providing legal services.

Our legal team assists businesses and entrepreneurs with debt assessments, formal payment demands, negotiations with debtors and representation in judicial proceedings.

If your company is dealing with unpaid invoices or a breach of contractual payment obligations, learn more about our debt recovery services in Spain or contact Lusa Legal for an individual consultation.