Between businesses, late interest runs automatically from the day after the due date at the ECB rate plus 8 points, 10.40% for the second half of 2026, plus EUR 40 per invoice. An undisputed claim against a Luxembourg debtor goes by written payment order: to the Justice of the Peace up to EUR 15,000, to the President of the District Court above. Across the EU, the European Payment Order and the Small Claims Procedure do the same job, and judgments travel without exequatur. To stop money moving, attach bank accounts by saisie-arrêt or a European Account Preservation Order.
An unpaid invoice is a cash problem first and a legal problem second
Most unpaid invoices are settled by a phone call and a firm letter. The rest come from debtors who are slow, who dispute the work, or who cannot pay. Luxembourg law has a tool for each.
For the slow payer there is the payment order (ordonnance de paiement), a written procedure without a hearing that turns an undisputed invoice into an enforceable title in a few months. For disputes there are summary and ordinary proceedings. Against a debtor moving money or sliding into insolvency there is attachment of bank accounts (saisie-arrêt) and, last, a bankruptcy petition.
Across borders, EU law adds three instruments that work in all Member States except Denmark: the European Payment Order, the European Small Claims Procedure and the European Account Preservation Order. Judgments travel between Member States without exequatur. Our note on a Luxembourg company in financial difficulty looks at the same situation from the debtor's side.
10.40% in H2 2026
ECB rate of 2.40% plus 8 points, B2B.
EUR 40
Per unpaid invoice, without a reminder.
No hearing
Justice of the Peace up to EUR 15,000.
10 years
Between traders, Art. 189 Commercial Code.
Reminders, formal notice and the statutory late interest
Payment terms. The Law of 18 April 2004 on payment terms and late interest, amended in 2013 to transpose Directive 2011/7/EU, governs transactions between businesses and with public authorities. Between businesses, payment terms cannot exceed 60 days unless a longer term is expressly agreed and not grossly unfair. Public authorities must pay within 30 days, at most 60 where justified. Without a contractual term, interest runs 30 days after receipt of the invoice.
Interest without a reminder. In business-to-business transactions, late interest is due from the day after the due date, without a formal notice. The statutory rate is the ECB main refinancing rate on the first calendar day of the half-year, plus 8 percentage points. After the ECB rise of June 2026, the main refinancing rate on 1 July 2026 was 2.40%, so the rate for the second half of 2026 is 10.40%. A clause excluding late interest altogether is presumed grossly unfair.
| Period | ECB reference rate | Statutory B2B late interest |
|---|---|---|
| 1st half 2025 | 3.15% | 11.15% |
| 2nd half 2025 | 2.15% | 10.15% |
| 1st half 2026 | 2.15% | 10.15% |
| 2nd half 2026 | 2.40% | 10.40% |
| Consumers, calendar year 2026 | Legal interest rate | 3.75% |
Each half-year rate is published in the Mémorial B and on Guichet.lu. For consumers, the legal interest rate fixed by Grand-Ducal regulation applies, 3.75% for 2026, generally from a formal notice.
EUR 40 per invoice. A business creditor is entitled to a flat EUR 40 for recovery costs on each late invoice, without a reminder, and to reasonable compensation for higher actual costs.
Formal notice. A mise en demeure is not a precondition for suing, but it is good practice. Send it by registered letter or have a bailiff serve it. State the amount, the invoices, the interest, a final deadline of eight to fifteen days and the procedure that will follow.
Collection agencies. An agency can chase payment amicably under a general business permit, but it cannot enforce. Only bailiffs (huissiers de justice) serve and enforce, and agency fees are recoverable only within the EUR 40 and the reasonable costs the law allows.
A Luxembourg IT consultancy invoices a Luxembourg SARL EUR 12,000 for services, payable on 21 July 2026. On 19 October 2026 the invoice is 90 days late and the customer has ignored two emails. Interest at 10.40%: EUR 12,000 × 10.40% × 90 / 365 = EUR 307.73. Add the EUR 40 flat fee. The claim on 19 October is EUR 12,347.73, growing by about EUR 3.42 a day. After a ten-day formal notice, the consultancy applies for a payment order to the Justice of the Peace of the debtor's seat, because the principal is below EUR 15,000.
Law and practice: Amended Law of 18 April 2004 on payment terms and late interest; Law of 29 March 2013 on combating late payment in commercial transactions; Directive 2011/7/EU. Rates: Guichet.lu, 'Payment deadlines / Late payment interest'; ECB decision of 11 June 2026. Legal interest rate for 2026 fixed by Grand-Ducal regulation.
The ordonnance de paiement: a written route for undisputed claims
The payment order is the workhorse of Luxembourg debt recovery. A judge examines the creditor's written application without a hearing and either refuses it or issues a conditional order, which the clerk notifies to the debtor.
| Principal claimed | Competent judge | Where | Lawyer |
|---|---|---|---|
| Up to EUR 15,000 | Justice of the Peace | Luxembourg, Esch-sur-Alzette or Diekirch, by the debtor's seat or domicile | Not required |
| Above EUR 15,000 | President of the District Court | Luxembourg or Diekirch | Not required to file |
| Employment claims | Labour court | Not by this route | See below |
Interest is not counted when the threshold is measured, so a EUR 14,800 invoice with EUR 600 of interest stays with the Justice of the Peace. The threshold was raised from EUR 10,000 to EUR 15,000 by the 2021 reform of the courts' jurisdiction. Wage claims go to the labour court instead; our note on the employment contract and dismissal covers that side.
Conditions. The claim must be a sum of money whose amount follows clearly from the documents, and the debtor must be domiciled in Luxembourg. Attach the contract, invoices, reminders and a statement of account. If the debtor is already bankrupt, file a claim in the bankruptcy instead.
- ApplicationWritten request to the clerk with supporting documents; the judge decides on the file.
- Conditional orderThe clerk notifies the debtor. Notification interrupts limitation and starts interest running where it did not already.
- 30 daysThe debtor may pay or lodge an objection (contredit) with the clerk, in writing or orally.
- Enforceable titleWith no objection, the creditor asks the clerk to make the order enforceable, within six months of notification, or it lapses.
- EnforcementA bailiff serves the enforceable order and seizes accounts, receivables or goods.
Objection and speed. An objection turns the file into contested proceedings before the same court; if neither party asks for a hearing within six months, the order lapses. Without one, two to four months from application to enforceable title is realistic. A rejected application cannot be appealed, but the creditor can still sue by summons.
Law and practice: New Code of Civil Procedure (NCPC), Articles 129 et seq. (Justice of the Peace) and 919 to 931 (President of the District Court). Guichet.lu, 'Recovery of claims up to EUR 15,000'; e-Justice portal, national order for payment procedures, Luxembourg; justice.public.lu application forms.
Summary provision, ordinary proceedings, costs and limitation
Interim payment in summary proceedings. Where the debtor raises a defence that is not serious, the creditor can go to the judge in summary proceedings (référé-provision) and ask for an interim payment of the part of the claim that cannot seriously be contested. The President of the District Court, or the Justice of the Peace within its limits, rules within weeks by a provisional but enforceable order. It suits a debtor who accepts most of an invoice and argues about a minor defect.
Ordinary proceedings. A genuinely disputed claim is decided on the merits. Up to EUR 15,000 the creditor summons the debtor before the Justice of the Peace by bailiff; the procedure is oral and parties can appear in person. Above EUR 15,000 the claim goes to the District Court, in its commercial chamber between traders; civil matters there require a Luxembourg lawyer, and in practice companies use counsel in commercial matters too. Expect roughly one to two years at first instance.
Costs. The courts charge no filing fee. The costs are bailiff fees under the amended Grand-Ducal Regulation of 24 January 1991, lawyer fees, and registration duty if certain documents are produced. The loser bears the costs of the proceedings. Lawyer fees are not part of them, but the judge may award a procedural indemnity under Article 240 NCPC; it is discretionary and rarely covers the full fee.
Limitation. Obligations between traders are time-barred after ten years under Article 189 of the Commercial Code, unless a shorter period applies. The Civil Code sets short prescriptions for some claims, such as one year for goods sold by traders to private individuals. A court claim, including notification of a payment order, interrupts limitation, and so does any acknowledgment by the debtor: a part payment or a written request for more time. Keep them.
Accepted invoices. Under Article 109 of the Commercial Code an accepted invoice is evidence against the buyer. Between traders, an invoice received and not promptly contested is generally treated as accepted. Silence for weeks is the creditor's best argument.
Law and practice: NCPC, Article 933 (interim payment in summary proceedings) and Articles 238 and 240 (costs, procedural indemnity); Commercial Code, Articles 109 and 189; Civil Code, Articles 2271 et seq.; e-Justice portal, 'Costs of proceedings', Luxembourg.
European Payment Order, small claims and judgments without exequatur
European Payment Order. Regulation (EC) No 1896/2006 creates a uniform written procedure for uncontested money claims in cross-border cases, meaning that at least one party is domiciled in a Member State other than that of the court. There is no ceiling. The creditor files standard form A; the court checks the form, not the evidence. The debtor has 30 days from service to oppose, without giving reasons. If it does not, the order is declared enforceable and is enforced in other Member States without further steps. If it does, the case moves to ordinary proceedings unless the creditor asked for it to end there.
In Luxembourg the order is issued by the Justice of the Peace up to EUR 15,000 and by the President of the District Court above, in French or German. Jurisdiction follows Brussels I bis: usually the debtor's domicile, the place of delivery or performance, or the court in a jurisdiction clause. Germany centralises European Payment Orders at the Amtsgericht Wedding in Berlin.
European Small Claims Procedure. Under Regulation (EC) No 861/2007, as amended by Regulation (EU) 2015/2421, cross-border claims up to EUR 5,000, excluding interest and costs, are decided in writing even if disputed. In Luxembourg the Justices of the Peace are competent, no court fee is charged and bailiff service costs a fixed EUR 165. Appeal lies only above EUR 2,000.
Judgments from other Member States. Under Regulation (EU) No 1215/2012 (Brussels I bis), a judgment from one Member State is enforceable in another without exequatur: the creditor gives the local bailiff the judgment and the certificate of the court of origin. Refusal is possible only on limited grounds. Judgments from outside the EU still need exequatur, subject to any treaty.
| Instrument | Claim | Debtor can | Result |
|---|---|---|---|
| European Payment Order | Uncontested, any amount | Oppose within 30 days, no reasons needed | Enforceable title in all Member States except Denmark |
| European Small Claims | Up to EUR 5,000, contested or not | Defend in writing within 30 days | Judgment enforceable without exequatur |
| European Account Preservation Order | Any amount, before or after judgment | Challenge after the freeze | Bank accounts frozen across borders |
| Brussels I bis judgment | Any civil or commercial claim | Apply for refusal on limited grounds | Direct enforcement, no exequatur |
A Luxembourg distributor delivered machinery to a GmbH in Stuttgart. Two invoices totalling EUR 85,000 are 120 days overdue. Interest at 10.40% for those days is about EUR 2,906, plus EUR 80 for the two invoices. There is no complaint about the goods, so the distributor files a European Payment Order at the Amtsgericht Wedding, or in Luxembourg if the contract placed delivery there. Without opposition within 30 days, the order is enforceable in Germany. But the customer has started selling assets. Knowing its Stuttgart bank, the distributor also applies for a European Account Preservation Order. Without a judgment it must show a likely claim and a real risk, and may have to lodge security. The court decides within ten working days, without hearing the debtor, and the account is frozen up to the amount ordered.
Law and practice: Regulation (EC) No 1896/2006, Articles 7, 12 and 16; Regulation (EC) No 861/2007 as amended; Regulation (EU) No 1215/2012, Articles 7(1) and 39; e-Justice portal, European Judicial Atlas, Luxembourg.
Saisie-arrêt, the European Account Preservation Order and the bailiff
A judgment is worthless against an empty account. Freeze money before it moves.
Saisie-arrêt. Under Article 693 NCPC a creditor holding an authentic or private title can attach sums owed to its debtor by a third party: a bank balance, a receivable, rent. A signed contract, an acknowledgment of debt or an accepted invoice can serve as a private title. Without one, the creditor asks a judge for permission, and the judge fixes the amount. The bailiff serves the attachment on the bank, which must then hold the funds.
Within eight days the attachment is notified to the debtor with a summons to have it validated, and the bank is then informed of that summons. If the court validates the attachment, the bank pays the creditor from the frozen funds. If the creditor misses a step or loses, the attachment falls and the creditor may owe damages. The bank can deposit enough to cover the claim and release the rest.
European Account Preservation Order. Regulation (EU) No 655/2014 adds a cross-border version, available before, during or after proceedings on the merits. The debtor is not warned. Without a judgment the court decides within ten working days if the claim is likely to succeed and enforcement is at real risk; with one, within five. Security may be required. A creditor with a judgment can ask the court to find the debtor's accounts; in Luxembourg the CSSF asks every bank. The order is issued by the Justice of the Peace up to EUR 15,000 and by the President of the District Court above.
The bailiff. Bailiffs serve, attach, seize and collect under a regulated tariff, generally charged to the debtor in the end.
A Luxembourg supplier has an acknowledgment of debt signed by a customer SARL for EUR 40,000, payable by 30 June 2026. Nothing has been paid by September and the customer is moving its business to a new company. The supplier instructs a bailiff to serve a saisie-arrêt on the customer's two Luxembourg banks on the strength of the acknowledgment. Both banks block the balances, EUR 26,000 in total. Within eight days the bailiff notifies the customer with a summons to validate. The court validates the attachment for the principal, interest at 10.15% and 10.40% for the respective half-years, and costs, and the banks pay out EUR 26,000. The balance is pursued by a further attachment on the customer's receivables.
Law and practice: NCPC, Articles 693 et seq. and 703; Regulation (EU) No 655/2014, Articles 7, 12, 14 and 18; e-Justice portal, European Judicial Atlas, Luxembourg; Grand-Ducal Regulation of 24 January 1991 on bailiff fees.
When the debtor fails, and how to stop it happening
Creditor petition. Any unpaid creditor can summon a Luxembourg commercial company before the District Court sitting in commercial matters and ask for its bankruptcy. The court must find that the company has stopped paying and lost its creditworthiness; one unpaid invoice is not enough. A petition is a lever, not a recovery tool: in bankruptcy the creditor ranks behind secured and privileged creditors. Use it when the company is plainly finished.
Filing the claim. In bankruptcy, individual enforcement stops. The creditor files its claim with the clerk of the court, or online through MyGuichet.lu, by the date set in the judgment; Guichet.lu states that the outer limit is six months from the judgment. In a judicial reorganisation under the 2023 law, a stay of up to four months, twelve in total, blocks enforcement and the creditor votes on the plan.
Retention of title. A seller can claim back goods from the curator if the clause was agreed in writing no later than delivery, the goods are still identifiable, and the claim is made within three months of the last publication of the bankruptcy judgment. A clause printed only on a later invoice fails.
Set-off. After the judgment set-off is generally excluded, except between closely connected claims, typically under the same contract, and under netting arrangements protected by the Law of 5 August 2005. Payments received shortly before bankruptcy can be challenged by the curator; see the note on companies in difficulty.
Prevention.
- Check before you deliver. A Luxembourg Business Registers extract and the filed accounts show who manages the customer and how much equity it has; accounts missing for two years are a warning. See the annual compliance calendar.
- Write the terms down. Payment term, interest, retention of title and a jurisdiction clause, accepted before the first delivery.
- Take security for large exposures. A guarantee, an advance or a pledge.
- Invoice so it can be proved. Suppliers to Luxembourg public bodies must send structured e-invoices, usually through Peppol, since 18 March 2023; see e-invoicing and ViDA.
- Act at 30 days overdue, not 120. Every month of delay lowers the chance of full recovery.
When buying a company, test its receivables the same way: old claims may be time-barred.
Law and practice: Commercial Code, Articles 437, 440 and 442 (bankruptcy), Article 567-1 (retention of title); Law of 7 August 2023 on business preservation and modernisation of bankruptcy law; Law of 5 August 2005 on financial collateral arrangements; Law of 16 May 2019 on electronic invoicing in public procurement; Guichet.lu, 'Creditor claims in bankruptcy'.
Estimate the interest and pick your route
Enter the unpaid principal and the days overdue, then describe the debtor. The checker applies the H2 2026 statutory rate and the routes above. It is a first orientation, not a legal opinion on your file.
Unpaid invoice: interest, route and court
Enter the claim and answer five questions about the debtor. You get the statutory late interest to date, the recovery compensation, the procedure that usually fits, the competent court, an indicative timeline, the documents to gather and the red flags to clear first.
Statutory B2B late interest from 1 July to 31 December 2026.
Flat recovery fee per invoice, plus reasonable excess costs.
Line between the Justice of the Peace and the District Court.
Attach accounts before the money moves.
Debt recovery in Luxembourg: frequent questions
What is the late payment interest rate in Luxembourg for the second half of 2026?
For commercial transactions it is 10.40% a year: the ECB main refinancing rate of 2.40% in force on 1 July 2026 plus 8 percentage points. The rate applies from 1 July to 31 December 2026 unless the contract sets a different rate. For consumers the legal interest rate for 2026 is 3.75%.
Who issues a payment order in Luxembourg?
The Justice of the Peace of Luxembourg, Esch-sur-Alzette or Diekirch for claims up to EUR 15,000 of principal, and the President of the District Court of Luxembourg or Diekirch above that. The debtor must be domiciled in Luxembourg. No lawyer is required to file.
Can I freeze a debtor's bank account before I have a judgment?
Yes. In Luxembourg a creditor can make a saisie-arrêt on the strength of a private title, such as an accepted invoice, or with the permission of a judge. Across EU borders, the European Account Preservation Order does the same without warning the debtor.
Are there court fees in Luxembourg?
Generally no filing fees. The costs are bailiff fees under a regulated tariff and lawyer fees; the court can award a procedural indemnity under Article 240 NCPC.
What happens to my claim if the debtor goes bankrupt?
Individual enforcement stops. You file your claim with the clerk of the District Court sitting in commercial matters by the date in the bankruptcy judgment. Goods sold under a valid written retention of title clause can be claimed back, and mutual claims that are closely connected can still be set off.