Late payment laws › European Union

EU Late Payment Directive (2011/7/EU): interest, €40 and payment terms

Not legal advice. Every statement below links to the official source it comes from.

Directive 2011/7/EU sets minimum rules on late payment in commercial transactions (business-to-business and business-to-public authority) across the EU. Each member state writes it into national law, so check your country's version for exact rates and wording.

What the law says

• When payment is late, statutory interest is due without a reminder, at least the reference rate plus 8 percentage points. For euro-area states the reference rate is the ECB's main refinancing rate, fixed for each half-year on 1 January and 1 July.
  Source: EUR-Lex: Directive 2011/7/EU
• Creditors are entitled to a fixed minimum of €40 as compensation for recovery costs, without needing a reminder.
  Source: EUR-Lex: Directive 2011/7/EU
• Public authorities must generally pay within 30 calendar days. Longer terms are allowed only in limited cases, up to 60 days for certain public entities such as healthcare bodies.
  Source: EUR-Lex: Directive 2011/7/EU
• The European Commission maintains guidance and national implementation information on late payment.
  Source: European Commission: Late payment

Use it in your reminder

Mention the rule calmly and factually in your firm or final reminder, e.g. “Under [law], payment was due by [date]. Please pay by [deadline].” Work out the exact amount with the late payment interest calculator.

Related

• EU reminder with statutory interest
• Germany: Mahnung template
• France: €40 indemnity

Other jurisdictions

United Kingdom · Australia · Canada (Ontario) · New York State · New York City · California · Illinois · Los Angeles · Columbus, Ohio · Minneapolis · United States (general)

Not legal advice. This page summarises official sources as of 31 October 2026 for general information; laws change and details depend on your contract and circumstances. Check the linked source or ask a qualified lawyer before relying on it.