When a company or freelancer is paid late, Spanish law does not oblige it to bear the financial cost of the delay. Law 3/2004, which establishes measures against late payment in commercial transactions, grants the creditor three cumulative rights. Knowing them lets you claim with more force and calculate the right amount.
Interest accrues automatically
Article 5 provides that a debtor who does not pay within the agreed or statutory period is in default, and that default interest accrues without any reminder or formal demand by the creditor. You do not need to send a prior demand for interest to start running, although it is wise to do so in order to prove the claim.
Article 7.2 sets the statutory rate. It is the rate applied by the European Central Bank to its most recent main refinancing operation, calculated as the law provides, plus eight percentage points. The rate is reviewed by calendar half-year, so the rate applicable to each period must be checked.
The forty euro compensation
Article 8 gives the creditor, besides interest, the right to collect a fixed amount of forty euros for each overdue invoice, as compensation for collection costs. It is an amount per invoice and not per claim, so with several unpaid invoices the total can be significant.
If the creditor proves that its collection costs exceed that amount, it can claim the excess. Lawyer and court agent fees for out-of-court handling fall into that category when they are justified.
How to calculate a claim
- Identify the due date of each invoice, under the contract or the law.
- Apply the default rate in force in each half-year to the principal.
- Add forty euros per invoice.
- Add, if proven, any additional recovery costs.
Limits and precautions
Agreements on payment terms and interest rates have limits. A clause that excludes default interest or sets a payment term longer than the statutory one can be challenged. If the contract provides another rate, compare it with the legal one.
Before claiming, check that the invoice was properly issued, that the goods or services were delivered and that there is no pending dispute. A solid claim starts from clear documents. With a well-calculated demand, many debtors pay without the need for a lawsuit.
This article is general information on Spanish law and not personalised advice. Contact us to discuss your case.
Carlos Babot Horcajadas
Lawyer admitted in Málaga, no. 10.971. Partner at Babot Aranguren Abogados. More about the author.