By Gustavo Adolfo Gómez Ferré, a Barcelona lawyer with a Law degree from the Universitat de Barcelona, a Diploma in International Procedural Law from the Universitat Pompeu Fabra, a member of the Il·lustre Col·legi de l’Advocacia de Barcelona and founder of Bufet Gómez Ferré.
You have sold products or services to a foreign client who does not pay. Invoices pile up, emails go unanswered and you do not know whether you can claim from Spain or must travel to their country. When international non-payments cross borders, the situation becomes complicated: according to CESCE data, more than 35% of Spanish exporting companies experience problems collecting international debts, especially from clients in non-EU countries. At BUFET GÓMEZ FERRÉ, we are specialist lawyers in Debt recovery and cross-border claims in Barcelona and across Spain. In this article we explain the essentials about international delinquent clients and when you will need specialist legal help.
International delinquent clients: quick summary
What counts as an international delinquent client
An international delinquent client is any person or company in another country that does not pay what was agreed within the agreed timeframes. International business debt has specific characteristics that distinguish it from domestic non-payments.
- European Union companies that leave invoices unpaid after a sale or service transaction
- Non-EU distributors who receive goods but do not pay the agreed amount
- Private clients from other countries who contract online services and do not make payment
- Foreign companies that breach supply or commercial collaboration contracts
The difference lies in where the debtor is located:
| Debtor location | Situation |
|---|---|
| 🇪🇺 European Union | You have fast and affordable legal options. The European order for payment procedure allows you to obtain an enforceable payment order in all EU countries without the need to litigate abroad. Regulated by Regulation (EC) 1896/2006, it is especially efficient for debts below €5,000. |
| 🌍 Outside the EU | Claiming unpaid foreign invoices becomes more complicated. You will need to verify whether Spain has a convention with that country, whether you can enforce a Spanish judgment there, and whether the process costs do not exceed the debt. In many cases involving countries such as China, the USA or several Latin American countries, international debt recovery can be extremely difficult or simply unviable. |
Main problems when claiming international debts
These are the real difficulties you will encounter:
- ⚖️ Not knowing which court has jurisdiction: if your contract does not specify which courts should hear the matter, you may end up having to sue in the debtor’s country, with all the costs that entails.
- 🌐 Language barriers: all documentation (contracts, invoices, emails) will need to be officially translated. This adds costs and time.
- 💸 High costs: between local lawyers in the debtor’s country, sworn translations, apostilles and foreign court fees, costs can soar. For debts under €10,000 it is sometimes not worth it.
- 🔒 Complicated enforcement: winning the case does not mean getting paid. If the debtor is outside the EU, you will need a judgment recognition procedure that can take years.
- ⏱️ Limitation periods: in Spain they are 5 years for commercial debts, but in Germany only 3 years. If you do not act in time, you will lose the right to claim.
- 🔍 Locating the debtor: if the company has changed address or closed down, it will be very difficult to serve notice correctly.
- ❌ Lack of awareness of European mechanisms: many companies are unaware of the European order for payment procedure and waste time and money trying to litigate in the debtor’s country when they could resolve it in 2–4 months from Spain.
📌Specific situation: If your case involves a foreign supplier who has failed to meet the agreed conditions (defective quality, missed deadlines, incorrect deliveries), see our guide on what to do if a supplier breaches a contract: legal steps, where we explain how to document the breach and the legal options available before initiating court proceedings.
Legal routes for cross-border debt claims: what options are there really
Within the European Union
European order for payment: this is your best option for cross-border claims in the EU and it works as follows:
- Submit a standard form from Spain
- The Spanish court issues a payment order within 30 days
- The foreign debtor is notified
- If they do not object within 30 days, the order is automatically enforceable in their country
Advantage: you do not need a lawyer in the debtor’s country, no travel is required, it is fast (2–4 months) and cost-effective. The order is enforced directly in any EU country as established in the European e-Justice Portal.
Limitation: it only applies to clear, documented debts that the debtor does not contest. If they object, the case proceeds to ordinary proceedings.
Small claims procedure: if the debt is less than €5,000, this simplified procedure is even faster and does not require a lawyer.
Outside the European Union
As mentioned, things become significantly more complicated here. You will need to:
- Verify whether Spain has a bilateral convention with that country (there are agreements with Argentina, Mexico, Brazil, Colombia, Chile… but not with China, India, Russia…).
- Hire a local lawyer in the debtor’s country.
- Follow that country’s judicial procedures (which can take years).
- If you win, apply for recognition and enforcement of the judgment (exequatur), which may be refused.
Our recommendation: before suing outside the EU, carry out a cost-benefit analysis with a lawyer specialising in cross-border claims. In many cases the judicial route is not cost-effective and alternatives such as negotiation, mediation or writing off the loss should be explored. International recovery outside the European framework can involve costs exceeding 30–40% of the amount claimed.
📌If the debtor is outside the EU: To explore the specific legal options when non-payment comes from a non-EU client, see our detailed article on how to claim unpaid invoices abroad, where we analyse procedures, international conventions and recovery alternatives depending on the debtor country.
Case study: Spanish company recovers debt in Germany
| Phase | Detail |
|---|---|
| 📋 Situation | Marketing Digital BCN provides consultancy services to German company TechBerlin for €15,400. After delivering the work, 4 invoices totalling €12,800 remain unpaid. The German company cites cash flow problems but does not pay. |
| ⚡ Action | After two demands with no response, the European order for payment procedure is initiated from Barcelona. The form is submitted with invoices and emails in which the client acknowledges the debt. |
| ✅ Result | The Spanish court issues the payment order in 25 days. TechBerlin does not object. After 30 days the order becomes enforceable. It is presented in Germany and a bank account is seized. Total: 2 months from start to full payment. |
| 🔑 Why did it work? | Documented debt, EU-based client, no dispute about the service. The European order for payment avoided hiring a German lawyer, travelling or litigating there. Cost: minimal. Time: 2 months. |
| ❌ Alternative if they had sued in Germany | Hiring a German lawyer (from €3,000), translating everything, following German procedure (12–18 months), travel. Estimated cost: €5,000–8,000. Time: over 1 year. |
💡 Case conclusion: for international non-payments within the EU with a clear debt, the European order for payment is the fastest and most cost-effective route.
How to prevent problems with foreign clients
Frequently asked questions
Yes, especially if they are in the EU. With the European order for payment procedure everything is done from Spain using forms. Only in very specific non-EU cases might you need a physical presence, though normally your lawyer can represent you.
In the EU with the European order for payment: 2–4 months if there is no objection. With ordinary proceedings in the EU: 8–18 months. Outside the EU: it can take years, especially if judgment recognition is needed, which is why acting quickly is crucial.
For the European order for payment procedure, no — you can start it without a lawyer from Spain. For ordinary proceedings in the EU, it depends on the amount. Outside the EU, you will almost always need a local lawyer, which significantly increases the cost.
International debt recovery is not like claiming in Spain. Each country has its own rules, deadlines and costs. A strategic mistake can cost you time and money, or mean you never collect at all. International litigation requires specific knowledge of bilateral conventions, European procedures and recovery alternatives. Without specialist advice on international debt collection, you may end up spending more on the process than the original debt amount.
Free lawyer consultation – Specialist lawyer for international delinquent clients
As specialist lawyers in International debt recovery, we know all European procedures and work with correspondents abroad when necessary. Send us your free initial consultation, we assess your case with no obligation:
Do not let a delinquent client affect your cash flow. The sooner you act, the more options you will have to recover your money. We explain the options available in your specific case and help you recover what is rightfully yours.