Late payment interest and compensation by country

Late payment interest in short

In the EU, a business that is paid late by another business can charge statutory interest at the reference rate plus at least 8 percentage points, from the day after the due date and without sending a reminder, plus a fixed compensation of at least €40 per invoice. That rule comes from the EU Late Payment Directive (2011/7/EU), which each member state applies through its own law. In the UK, the Late Payment of Commercial Debts (Interest) Act 1998 gives the Bank of England rate plus 8% and a fixed sum of £40, £70 or £100.

On 27 October 2026 that means, for example, 10.52% in Germany, 12.40% in France, 10.40% in Spain, Italy, Ireland and the Netherlands, and 11.75% in the United Kingdom. The US has no federal statute that sets late payment interest between private businesses: the contract and state law decide.

Below you find a calculator, a table of 17 countries with the legal basis and the source for each row, and what to do when interest alone does not get the invoice paid.

What the EU Late Payment Directive gives you

The Late Payment Directive 2011/7/EU sets minimum rules for payments between businesses, and between businesses and public authorities. Each EU country has written them into national law, sometimes with a higher rate or a higher fixed sum. The main rights are:

• Interest without a reminder. Interest runs automatically when you have delivered and the customer has not paid on time, unless the customer is not responsible for the delay (Article 3(1)).
• From the day after the due date. If the contract sets no date, interest starts 30 days after the customer receives the invoice or, if that date is uncertain, 30 days after receipt of the goods or services (Article 3(3)).
• Reference rate plus at least 8 points. Statutory interest is simple interest at the reference rate plus at least eight percentage points (Article 2(6)). In euro countries the reference rate is the ECB main refinancing rate; in other EU countries it is the equivalent rate set by the national central bank (Article 2(7)).
• Two half-years a year. The rate in force on 1 January applies to the first half of the year, and the rate in force on 1 July to the second half (Article 3(2)).
• At least €40 per invoice. You are entitled to a fixed sum of at least €40 as compensation for your own recovery costs, without a reminder, plus reasonable compensation for recovery costs above that (Article 6).
• Payment terms of 60 days at most. Contract payment periods may not exceed 60 calendar days unless expressly agreed and not grossly unfair to the creditor (Article 3(5)).
• No waiver by the back door. A term that excludes interest for late payment is considered grossly unfair, and one that excludes the €40 compensation is presumed grossly unfair (Article 7).

The ECB main refinancing rate was 2.15% on 1 January 2026 and 2.40% on 1 July 2026. The ECB raised it to 2.65% with effect from 16 September 2026 (ECB key interest rates), which feeds into the reference rate for the first half of 2027 if it is still in force on 1 January.

Late payment interest rates by country (October 2026)

The table shows the statutory rate a business can charge a late-paying business customer when the contract sets no other rate. Each row was checked against a primary source on 27 October 2026: the law, the official gazette, the central bank or the government body that publishes the rate. Click a country to see how collection works there.

Notes on the table:

• Rates change every half-year in most countries. Where the law ties the rate to the ECB, we applied the ECB rate in force on 1 July 2026 (2.40%) to the formula in the national law.
• Austria, Belgium, Bulgaria, Cyprus, Czechia, Greece, Hungary, Lithuania, Luxembourg, Malta, Portugal, Romania and Slovenia are not in the table yet, because we could not confirm the current rate at a primary source on the date of checking. All of them apply the Directive's minimum of reference rate plus 8 points and at least €40. The European e-Justice Portal collects each country's rules.
• In Germany the late payment interest (Verzugszinsen) for B2B claims is 9 points over the base rate, and the €40 flat fee (Verzugspauschale) is set off against any damages for legal costs (BGB § 288(5)).
• In Poland the 13.75% applies when the debtor is not a public healthcare entity. In Switzerland, interest runs from an agreed fixed due date or, without one, from a reminder.

United Kingdom: the Late Payment of Commercial Debts Act

Between businesses in the UK, statutory interest is 8% a year over the Bank of England rate, under the Late Payment of Commercial Debts (Interest) Act 1998. The rate is fixed for the whole debt: it is the Bank Rate in force on 30 June (for interest that starts to run between 1 July and 31 December) or on 31 December (for interest that starts between 1 January and 30 June) immediately before interest starts (the 2002 rate order, article 4). The Bank Rate has been 3.75% since 18 December 2025 (Bank of England), so interest that starts in the second half of 2026 runs at 11.75%.

Once statutory interest starts, you are also entitled to a fixed sum (section 5A):

Example. An invoice of £5,000 fell due on 15 December 2025 and was paid on 15 March 2026, 90 days late. Interest started on 16 December 2025, so the rate is the Bank Rate on 30 June 2025 (4.25%) plus 8%, or 12.25%. Interest is £5,000 × 12.25% × 90 / 365 = £151.03, and the fixed sum is £70.

The search term "late payment interest" in the UK often means HMRC interest on late tax. That is a different rate set by HMRC and has nothing to do with invoices between businesses.

United States: contract terms and state law

There is no federal statute that gives a business statutory interest when another private business pays late. The federal Prompt Payment Act only requires federal agencies to pay their bills on time and to pay interest when they pay late; its rate for 1 July to 31 December 2026 is 4.75% (U.S. Treasury, Bureau of the Fiscal Service).

Between private businesses, interest on a late invoice comes from two places:

• The contract. A late payment clause in your terms of sale, accepted by the customer, sets the rate. Check the law of the state that governs the contract before you set it.
• State law in court. If you sue, the court may award prejudgment interest under the law of the state, and the rules differ from state to state.

Because there is no single statutory rate, the calculator above leaves out the US. For a US customer, put the interest rate and the payment terms in the contract before you deliver. See debt collection in the United States for how collection from a US business works.

How to calculate statutory interest, step by step

1. Find the law that applies. The rate depends on the law that governs the contract. If your terms choose a law, that is usually it; if not, the conflict of laws rules decide. The calculator uses the debtor's country, because that is where a local partner collects.
2. Check the contract. An agreed rate replaces the statutory rate in most countries, within limits. A term that excludes interest altogether is grossly unfair under EU rules.
3. Count the days late. Interest runs from the day after the due date up to and including the day of payment.
4. Use the right rate for each period. In most EU countries the rate is reset on 1 January and 1 July, so split the delay at those dates. In the UK and Slovakia, the rate at the start of the delay applies to the whole delay.
5. Apply simple interest. Interest = amount × annual rate × days / 365. The Netherlands is the exception: unpaid interest is added to the principal after each full year (BW 6:119a(3)).
6. Add the fixed compensation. €40 or the national equivalent per invoice, once, not per day.

Worked example, Germany. An invoice of €10,000 fell due on 31 March 2026 and was paid on 27 October 2026, 210 days late. From 1 April to 30 June 2026 (91 days) the rate is 1.27% + 9 = 10.27%: €256.05. From 1 July to 27 October 2026 (119 days) it is 1.52% + 9 = 10.52%: €342.98. Total interest €599.03, plus the €40 Verzugspauschale (Bundesbank, BGB § 288).

How to claim interest from a business customer abroad

Having the right to interest is one thing. Getting a customer in another country to pay it is another. A few practical points:

• Put it in writing before you deliver. State the payment term, the late payment interest and the fixed compensation in your terms of sale and on the invoice. Our payment terms and retention of title clause guides cover the clauses.
• Claim it in the final demand. Show the principal, the interest calculation with dates and rate, and the fixed compensation as separate lines. A demand letter in the customer's language, from someone in the customer's country, carries more weight than one from abroad.
• Watch the limitation period. Interest is claimed together with the principal, so the same deadlines matter. See limitation periods for commercial debts by country.
• Know the court routes. If the customer is in another EU country, the European payment order can turn an undisputed claim with interest into an enforceable title, and a judgment you already have can be enforced abroad.
• Be ready to settle. You may decide to waive part of the interest in exchange for fast payment of the principal. That is a business decision, and you can only make it if you claimed the interest first.

When interest is not enough: getting the invoice paid

Interest helps your claim, but it does not collect it. When a business customer abroad still does not pay, the next step is collection in the customer's own country, by someone who knows the local law and speaks the language. See how to collect a debt from a business customer abroad for the full path.

Debitura gets unpaid B2B invoices paid across borders, in 180 countries. We match your case to a vetted local partner in the debtor's country, based on the type of debtor, the claim and how partners perform on our platform. One Standard Debt Collection Agreement covers pre-legal collection of undisputed unpaid invoices in every country we serve.

• No upfront cost. You pay a success fee only when money is recovered. Fees are from 6% in Europe and 7.5% elsewhere, depending on claim size and the debtor's country: see your fee.
• Interest and fixed compensation. Under the Standard Debt Collection Agreement, late payment interest and fees that the partner adds to the claim under local law are paid by the debtor and kept by the partner as part of its compensation, separate from your success fee. Read the agreement.
• Legal action is your choice. If the debtor still does not pay, legal action is optional, quoted separately and only starts if you accept the quote.

See how it works, read what B2B debt collection is, or compare the options on commercial collection agency, what to do with unpaid invoices and debt collection in Europe.