In today’s article, we will focus on what you can do when dealing with unpaid invoices in Europe. Also, how to recover your money through legal procedures.
Check this article, where we shared ideas on what to do if a Spanish client does not pay you after you have issued and accounted for the invoice.
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Unpaid invoices in Europe: What to do
While it can be stressful, you shouldn’t worry excessively about unpaid invoices in Europe. Fortunately, the European Union has established simplified procedures for debt claims between member countries, with the exception of Denmark. These legal processes make debt recovery easier and more efficient.
The European Payment Requirement
One of the most effective ways to address unpaid invoices in Europe is by using the European Payment Requirement. This process allows you to claim the payment of monetary debts for amounts greater than € 2.000, but without an amount limit, as long as they are due and demandable.
That is a straightforward and cheap way of claiming. You don’t need a lawyer or attorney. Just fill out the official form, identifying the debt and relating it to the supporting invoices.
What’s more, you don’t even need to know languages, because at the end of the document you will find an option to translate it into any European language.
Where to fill in the form?
The official document is available online at this link. You can find it by selecting the relevant country, region, or district.
Once completed, you must submit the form to the appropriate court and pay the required court fee, which is usually indicated on the court’s website.
Client Response Options
After submitting the European Payment Requirement, your client has three possible responses:
- Pay the debt.
- Oppose the claim, which would escalate the case to the jurisdictional authorities of the member state. Unless you had expressly prohibited this when submitting your request.
- Fail to respond, making the payment request enforceable. In this case, you can proceed with an executive claim in your country, which may include asset or bank account seizures.
The European Low Amount Procedure
Another point to keep in mind is that if the unpaid invoices in Europe with your client don’t exceed € 2.000, you can use a procedure called the European Low Amount Procedure. That comes to be like the one explained above, but the action deadlines are shorter than usual.
Using these legal frameworks, businesses and freelancers can effectively recover payments from European clients. That way you can minimize your financial losses and ensure your work is compensated fairly.
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