Navigating Debt Collection in Spain: A Guide for Exporters

Doing business in Spain can be a great opportunity, but what happens when a client doesn't pay? Understanding the Spanish legal and commercial landscape for debt recovery is crucial, especially for exporters. This post will walk you through the key aspects of amicable and judicial debt collection in Spain and how they compare to the rest of the EU.

Amicable Debt Collection in Spain: The First Step

Amicable debt collection, or "recuperación amistosa," is the preferred initial approach. It's a non-confrontational process aimed at recovering a debt without going to court. In Spain, this typically involves:

• Formal Communication: Sending formal letters ("burofax") or emails demanding payment. A "burofax" is particularly useful as it provides legally recognized proof of a demand for payment.
• Phone Calls & Negotiations: Direct contact to understand the debtor's situation and negotiate a payment plan.
• Mediation: Using a third-party mediator to facilitate an agreement.

This process is often quicker and more cost-effective than litigation. A key similarity with other EU countries is the emphasis on amicable resolution before resorting to legal action. Spain's legal system, like many others, encourages creditors to demonstrate good faith by attempting an out-of-court settlement first.

Judicial Debt Collection: When Amicable Efforts Fail

If amicable efforts fail, you'll need to pursue "vía judicial" or judicial debt collection. This is where things can get more complex and where understanding the Spanish legal system is vital.

The "Proceso Monitorio" (Payment Order)

The most common judicial procedure for undisputed debts is the "proceso monitorio." This is a fast-track process where a court issues a payment order based on documented evidence of the debt (invoices, contracts, etc.) without a full court hearing.

• Process: The creditor files a petition with the competent court. The court reviews the documentation and, if everything is in order, sends a payment demand to the debtor, who has 20 days to either pay, object, or fail to respond.
• Enforceability: If the debtor does not object or respond, the payment order becomes final and enforceable, allowing for forced collection measures like seizing assets.

Comparison with the EU

The "proceso monitorio" is Spain's national equivalent of the European Payment Order (EPO) procedure. Both are simplified, fast-track mechanisms for uncontested cross-border debts. However, it's important to note the nuances. While the EPO is a streamlined tool for cross-border claims, local attorneys in Spain often prefer the "proceso monitorio" for its familiarity and local procedural advantages.

A key difference is the legal and procedural formalism of the Spanish system. For foreign companies, things like obtaining a formal power of attorney ("poder notarial") that is notarized, apostilled, and translated by a sworn translator can be complex and time-consuming. This contrasts with some EU countries where legal formalities might be less rigid.

How Sekundi Helps You Recover Debts in Spain?

This is where Sekundi's expertise becomes invaluable. Navigating the Spanish legal and cultural landscape can be daunting for foreign companies. Sekundi provides a seamless solution by bridging the gap between your business and Spanish debtors.

• Local Expertise: Our team of experts understands the nuances of the Spanish legal system and the cultural factors that influence debt recovery. We know when to be firm and when to be flexible.
• Integrated Approach: We start with amicable collection, using our local presence and communication skills to resolve disputes quickly. We prioritize maintaining your business relationship whenever possible.
• Judicial Action: If amicable efforts fail, we can swiftly initiate and manage the "proceso monitorio" process, working with local legal partners to ensure all documentation is correct and the procedure is handled efficiently.
• End-to-End Service: From initial demand letters to asset seizure, Sekundi manages the entire debt recovery process on your behalf, providing you with regular updates and clear communication.

Don't let unpaid invoices hold back your business in Spain. Partner with Sekundi to ensure your export ventures are as profitable as they should be.