Recovering money owed by a Spanish company usually follows a clear path: gather the evidence, send a formal demand, check the debtor is actually solvent, attempt a settlement (now a legal requirement before suing) and, if that fails, file a payment order claim, the fast track procedure under Spanish civil law that gives the debtor 20 days to pay or object. If the debtor does not respond, you obtain an enforceable title and can move straight to seizing assets. Two things creditors based abroad should know from the outset: most claims become time-barred after five years, and on commercial invoices you are entitled to claim statutory late payment interest plus 40 euros per invoice on top of the principal.
In this guide, updated for 2026, our debt recovery lawyers in Spain set out the process step by step, including the tools available to foreign creditors. With more than 13 years of practice and 2000 cases handled, we act for companies and individuals recovering debts across Spain.
Before you start: is the debt still enforceable?
Two preliminary checks save a great deal of money. First, the debt must be due, liquidated and enforceable, meaning the voluntary payment period has expired and a specific sum can be demanded. Second, and often overlooked, the claim must not be time-barred. As a general rule, ordinary contractual claims in Spain lapse five years after they fall due, and a valid interruption requires a documented demand rather than an informal reminder. If a debt has been sitting unattended for years, this is the first thing to verify.
If you are based abroad: power of attorney
Creditors located outside Spain need to grant a power of attorney to their Spanish lawyers in order to litigate here. We normally draft it as broadly as possible, so that it covers proceedings anywhere in Spain and the entire recovery process, including enforcement. The document must carry an apostille and be accompanied by a sworn translation into Spanish. It can be signed before a notary in your own country, so there is no need to travel. We handle the whole process for our clients.
Step 1: gather the documentation and assess viability
The starting point is the paperwork proving the debt exists: invoices, delivery notes, contracts, purchase orders, certifications, emails and any written acknowledgement of the debt. A signed delivery note or an email in which the debtor accepts the invoice is worth far more than a verbal agreement.
Our lawyers then assess whether the claim is viable. A poorly documented or time-barred debt is unlikely to succeed, and it is better to know that before incurring legal costs than after.
Step 2: the formal out-of-court demand
This stage recovers more debts than any other, and it works largely for practical reasons. A formal demand shows the debtor two things: that you are serious about recovering the money, and that you are represented by a law firm prepared to litigate.
The instrument used in Spain is the burofax, a certified communication that provides legal proof of both its content and its delivery, which an ordinary email or letter cannot. That evidential value matters twice over: it interrupts the limitation period and it documents the attempt to settle. Debts can be settled amicably at any point, even after proceedings have started, in which case the court must be informed of the payment.
Step 3: check the debtor’s financial situation
Before spending money on litigation, it is worth knowing whether there is anything to recover. We obtain reports on the debtor’s actual position: whether it is insolvent or in insolvency proceedings, whether it has employees and assets, and whether there are preferential creditors ahead of you such as the Spanish Tax Agency, Social Security or the banks.
Winning a judgment against a company with no assets achieves nothing. This check allows us to tell clients honestly when a claim is not worth pursuing, and to prioritise cases where recovery is realistic.
Step 4: the settlement attempt, now compulsory
This is where the law has changed, and the change is significant. Under Organic Law 1/2025, in force since 3 April 2025, an attempt at out-of-court dispute resolution is a mandatory requirement before filing most civil claims, including payment order proceedings. It is no longer optional.
You do not have to reach an agreement, but you must be able to prove that a genuine attempt was made. A generic automated reminder will not do. Acceptable methods include a documented negotiation between the parties, negotiation conducted through lawyers, mediation, conciliation, a binding confidential offer or a formal demand by burofax or notarial deed. If this requirement is not met, the court can refuse to admit the claim, so it needs to be handled properly from the start.
Step 5: court proceedings
If the debtor still does not pay, the claim goes to court. Which procedure applies depends on the amount and the circumstances:
- Payment order procedure (procedimiento monitorio): the standard route for undisputed debts, governed by articles 812 to 818 of the Civil Procedure Act. There is no upper limit on the amount claimed. The court requires the debtor to pay within 20 days. If the debtor neither pays nor objects, an enforceable title is issued and enforcement can begin.
- Oral proceedings (juicio verbal): where the debtor objects and the claim does not exceed 15,000 euros.
- Ordinary proceedings (juicio ordinario): where the debtor objects and the claim exceeds 15,000 euros.
Legal representation by a lawyer and a court agent is not required for payment order claims of up to 2,000 euros, although it is advisable. Companies must pay court fees; individuals are exempt. You can read more about how the payment order procedure works in our detailed guide.
What you can claim on top of the invoice
Many foreign creditors leave money on the table here. In commercial transactions between businesses, Spanish Law 3/2004, which implements the EU Late Payment Directive, entitles you to claim, in addition to the principal:
- Statutory late payment interest, calculated at the European Central Bank reference rate plus eight percentage points, which is considerably higher than ordinary interest.
- A fixed 40 euros per overdue invoice as recovery costs, payable automatically and without any need for a prior reminder.
- Reasonable additional recovery costs incurred above that amount.
These rights cannot be waived by contract in business to business dealings: any clause purporting to exclude or reduce them is void. Claiming them properly can add a substantial sum to the recovery, particularly on old invoices.
Cross-border claims: options for creditors outside Spain
If you are based in another country, you are not limited to the ordinary Spanish procedure:
- European Order for Payment (Regulation 1896/2006): a uniform procedure for uncontested cross-border claims, available in every EU member state except Denmark. It works through standard forms, does not require attendance at court, gives the debtor 30 days to pay or object, and is directly enforceable across the EU without any intermediate recognition procedure.
- European Small Claims Procedure (Regulation 861/2007): a simplified written procedure for cross-border claims of limited value.
- Brussels I Recast (Regulation 1215/2012): judgments obtained in one member state are enforced in the others without the need for exequatur.
- Creditors outside the EU, including the United Kingdom and the United States, generally serve proceedings through the 1965 Hague Service Convention. Where speed matters and the debtor’s assets are in Spain, filing directly before the Spanish courts is often faster than suing at home and then seeking enforcement here.
Deciding between the Spanish payment order and the European one depends on where the debtor’s assets are, whether opposition is expected and how quickly you need an enforceable title. We assess that at the outset.
Enforcement: what happens after you win
Obtaining a judgment or an enforceable order is not the end of the process. If the debtor still fails to pay, you must file for enforcement, at which point the court investigates the debtor’s assets and can order the seizure of bank accounts, receivables, vehicles and real estate. Enforcement can be sought for up to five years, and the costs of the proceedings are generally recoverable from the debtor.
Mistakes to avoid when collecting a debt
A few errors can weaken an otherwise solid claim, or create fresh problems:
- Do not harass the debtor. Persistent calls or pursuit are counterproductive and can expose you to liability. The same applies to aggressive collection agencies acting on your behalf.
- Never insult or threaten, and avoid any physical confrontation. It will not recover the debt and may result in criminal consequences.
- Do not sue without sufficient evidence. Have the viability of the claim assessed first.
- Do not let time run. Claims lapse, and evidence deteriorates. Acting early significantly improves the chances of recovery.
- Do not give up at the first refusal. If the debt is documented and still in time, persistence pays.
How we can help
We assess the viability of your claim, prepare the power of attorney if you are abroad, send the formal demand, run the mandatory settlement attempt, obtain reports on the debtor’s solvency, file the claim through the most suitable procedure, whether Spanish or European, and pursue enforcement until the money is recovered. Our 92% success rate and an average client rating of 4.6/5 reflect how we work. Send us the invoices and we will tell you where you stand.
Frequently asked questions about debt collection in Spain
How long does debt collection take in Spain?
It depends on whether the debtor contests the claim. An uncontested payment order can produce an enforceable title within a few months, since the debtor has 20 days to respond. If the debtor objects, the matter becomes ordinary litigation and typically takes between several months and a year and a half, depending on the court. Recovering at the out of court stage is naturally much faster.
When does a debt become time-barred in Spain?
Ordinary contractual claims generally lapse five years after the debt falls due, although shorter periods apply to certain types of obligation. The limitation period can be interrupted by a documented demand, which is one of the reasons we use a burofax rather than an email. If several years have passed without any formal claim, the first step is always to verify whether the debt is still enforceable.
Do I have to try to settle before suing in Spain?
Yes. Since Organic Law 1/2025 came into force on 3 April 2025, a documented attempt at out of court dispute resolution is a mandatory requirement before filing most civil claims, including payment order proceedings. You do not need to reach an agreement, but you must prove a genuine attempt was made. Failing to comply can lead the court to refuse to admit the claim.
Can I claim interest and costs on an unpaid invoice?
Yes, and in commercial transactions between businesses these rights are automatic. Spanish Law 3/2004 entitles you to statutory late payment interest at the European Central Bank reference rate plus eight percentage points, a fixed 40 euros per overdue invoice as recovery costs, and reasonable additional costs. These entitlements cannot be waived by contract, and many creditors fail to claim them.
Can I collect a debt in Spain without travelling there?
Yes. You grant a power of attorney to your Spanish lawyers before a notary in your own country, with an apostille and a sworn translation into Spanish, and the firm handles the entire process on your behalf. EU creditors may also use the European Order for Payment, which is conducted through standard forms and does not require attendance at court.
