How to Stop Chasing Late Payments: Legal Deadlines in Spain and How to See Who Owes You
This is Spanish law, so if your business invoices outside Spain, check your own country's rules first — most EU countries have a version of the same cap, but the exact numbers differ. For businesses invoicing under Spanish law: what Ley 3/2004 sets as the maximum payment term, what the real average looks like, what you can claim automatically when a client pays late, and how Fold's overdue-payment alerts (Professional plan) help you see who owes you at a glance.
29 September 2026 · David Burnao
A Spanish law — worth checking your own country's rules too
What follows is Spanish law (Ley 3/2004). If your business invoices outside Spain, the exact numbers will differ, though most EU countries have a version of the same idea, since the EU's Late Payment Directive sets a broadly similar framework across member states. Check your own country's rules before relying on any figure here. For businesses invoicing under Spanish law, here's what applies.
The maximum term between companies: set by law, not by each client
When two companies don't agree otherwise, Ley 3/2004, Spain's law against late payment, sets the payment term at 30 calendar days from delivery of goods or services. If both parties agree to a longer term, the law still caps it: 60 calendar days maximum between private companies. Any agreement beyond 60 days is void, even if both parties signed it.
With a public administration as the client, the cap is shorter: 30 days. And once the applicable term is exceeded, the right to late-payment interest and a fixed compensation for collection costs kicks in automatically — no need to claim it in advance (more on that below).
What the law says, and what actually happens
The legal term is one thing; how long it actually takes to get paid is another. According to the 2025 Late Payment Report from the Plataforma Multisectorial contra la Morosidad (PMcM), the average private-sector payment period in Spain in 2025 was around 67 days — above the 60-day legal cap — and 85% of large companies fail to meet the legal deadlines, according to the same report. That's not an exception; it's the average.
For a small business, that means the 60-day cap is what the law sets, but the number worth watching is what each client actually does in practice — because it's almost certainly not the same.
What you can claim when a client pays late
The same Ley 3/2004 grants two rights automatically, with no need for prior notice, to whoever gets paid late:
- Late-payment interest, calculated on the European Central Bank's reference rate for its refinancing operations plus eight percentage points, unless another rate was agreed.
- A fixed €40 compensation for collection costs, plus any further justified expenses above that amount.
There's no need to formally claim it before it starts accruing — the law grants it from the day after the term expires. What you do need is to know, for every invoice, the exact day that term ran out — and that's exactly what gets lost between spreadsheets and email threads.
Why chasing payments by hand costs more than it looks like
The cost of a late payment isn't just the missing cash — it's the time someone on your team spends going through who's paid and who hasn't, client by client, invoice by invoice, usually right when the cash is actually needed, not before. The bigger your client list, the easier it is for one overdue invoice to go unnoticed among the rest, until it shows up as a surprise at month-end.
How Fold's alerts help, honestly
From the Professional plan, Fold reads your company's invoices and flags the ones that have been overdue longer than they should be, alongside tax deadlines, invoices that look duplicated, and any other due dates you confirm. It doesn't chase the payment for you, call your client, or send collection letters: it tells you what's overdue and since when, so you decide the next step — a reminder, a call, or applying the late-payment interest the law gives you. Every tax deadline it shows comes with "check it with your accountant" attached, because the exact date that applies to you is something your accountant confirms.
It's the same idea as with any other data in your company: Fold reads your files and answers with the exact row a figure comes from, so you can check it. With payments, that means seeing at a glance who owes you and since when, instead of rebuilding that picture from scratch every time.
What you need to see it with your own numbers
Just the spreadsheet or program where you already keep your issued invoices and their due dates. Fold learns what each column means, you confirm it, and from there it can flag what's run past the term. No need to switch invoicing software or export anything special.
Frequently asked questions
What's the maximum payment term between companies in Spain?
30 days with no agreement, and 60 calendar days maximum if both parties agree to it expressly. Ley 3/2004 sets it, and any agreement beyond 60 days is void.
What can I claim if a client pays late?
Late-payment interest (the European Central Bank's rate plus eight points, unless otherwise agreed) and a fixed €40 compensation for collection costs, plus further justified expenses above that. The law grants both automatically, without a prior claim.
Does Fold collect payments or chase my clients for me?
No. Fold flags which invoices are overdue and since when; you decide and handle the collection and the chasing.
From which plan does Fold flag overdue payments?
From the Professional plan, alongside tax deadlines and invoices that look duplicated.
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Want to see it with your own business?
Try Fold free with your own invoices, and if it works for you, check the Professional plan for overdue-payment alerts.
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