Payment Terms and Late Payment Rules in Spain

Commercial transactions in Spain are subject to statutory payment rules designed to protect businesses against late payment, deriving mainly from Law 3/2004, which transposes the EU Late Payment Directive (Directive 2011/7/EU). As a general rule, the default payment period is 30 days, and the period agreed between businesses may not exceed 60 days.

Where invoices remain unpaid beyond the applicable period, the creditor may be entitled to statutory late-payment interest —the European Central Bank reference rate plus eight percentage points— and to a fixed sum of €40 as compensation for recovery costs, without prejudice to additional reasonable costs (Articles 7 and 8 of the Law). Understanding these provisions matters not only for recovery but also for contract drafting and credit-risk management.

We quantify the principal, statutory interest and recovery compensation due under Law 3/2004 and claim them as part of the recovery.