How EU Statutory Late Payment Interest Works
EU Directive 2011/7/EU on combating late payment in commercial transactions creates a simple, automatic mechanism. The moment a B2B invoice passes its payment deadline without settlement, interest starts accruing — no reminder required, no contractual clause needed, no court order necessary.
The formula is:
Statutory Interest Rate = ECB Reference Rate + 8 percentage points
The ECB reference rate used is the rate for main refinancing operations, published by the European Central Bank and updated every six months. The rate applied to a specific debt is the rate in force on 1 January (for H1 debts) or 1 July (for H2 debts).
H1 2026 Rate
| Component | Rate |
|---|---|
| ECB Reference Rate (from 1 Jan 2026) | 3.15% |
| Fixed Directive addition | + 8.00% |
| Statutory B2B Interest Rate (H1 2026) | 11.15% |
This rate applies to all B2B invoices falling due between 1 January and 30 June 2026, regardless of ECB rate changes during that period.
B2B vs B2C: Different Rules Apply
The Directive applies exclusively to commercial transactions (B2B and B2G). Consumer transactions (B2C) are governed by national consumer protection and civil law, which typically sets much lower default interest rates.
| Transaction Type | EU Directive Applies | Typical Rate |
|---|---|---|
| B2B (business to business) | Yes | ECB + 8% = 11.15% (H1 2026) |
| B2G (business to government) | Yes | ECB + 8% = 11.15% (H1 2026) |
| B2C (business to consumer) | No | National civil law rate (typically 4–8%) |
Country-by-Country Rate Table — H1 2026
Most EU member states apply the standard ECB + 8% formula. A handful use national central bank reference rates or have legislated fixed rates. The table below shows the applicable rate for each EU member state for debts falling due in H1 2026.
| Country | Code | Rate Basis | H1 2026 Rate | National Law Reference |
|---|---|---|---|---|
| Austria | AT | ECB + 8% | 11.15% | §1333 ABGB |
| Belgium | BE | ECB + 8% | 11.15% | Loi du 2 août 2002 |
| Bulgaria | BG | BNB base + 10% | ~11.0%* | Закон за задълженията и договорите |
| Cyprus | CY | ECB + 8% | 11.15% | Late Payment of Commercial Debts Law |
| Czech Republic | CZ | CNB repo + 8% | ~12.75%* | §1968 Civil Code |
| Germany | DE | ECB + 8% | 11.15% | §288 BGB |
| Denmark | DK | Danmarks Nationalbank + 8% | ~11.0%* | Renteloven §5 |
| Estonia | EE | ECB + 8% | 11.15% | Võlaõigusseadus §113 |
| Spain | ES | ECB + 8% | 11.15% | Ley 3/2004 |
| Finland | FI | ECB + 7% | 10.15% | Korkolaki §4 |
| France | FR | ECB + 8% | 11.15% | Art. L441-10 Code de Commerce |
| Greece | GR | ECB + 8% | 11.15% | Law 4152/2013 |
| Croatia | HR | ECB + 8% | 11.15% | Zakon o financijskom poslovanju |
| Hungary | HU | MNB base × 2 | ~10.0%* | Ptk. §6:155 |
| Ireland | IE | ECB + 8% | 11.15% | European Communities (Late Payment) Regulations 2012 |
| Italy | IT | ECB + 8% | 11.15% | D.Lgs. 231/2002 |
| Lithuania | LT | ECB + 8% | 11.15% | CK Art. 6.210 |
| Latvia | LV | ECB + 8% | 11.15% | Komercdarbības likums |
| Luxembourg | LU | ECB + 8% | 11.15% | Loi du 18 avril 2004 |
| Malta | MT | ECB + 8% | 11.15% | Late Payment (Combating) Act |
| Netherlands | NL | ECB + 8% | 11.15% | Art. 6:119a BW |
| Poland | PL | NBP ref. + 8% | ~12.75%* | Ustawa z dnia 8 marca 2013 |
| Portugal | PT | ECB + 8% | 11.15% | DL 62/2013 |
| Romania | RO | BNR + 8% | ~13.5%* | Legea 72/2013 |
| Sweden | SE | Riksbank rate + 8% | ~10.5%* | Räntelagen (1975:635) |
| Slovenia | SI | ECB + 8% | 11.15% | ZPreZP-1 |
| Slovakia | SK | ECB + 8% | 11.15% | Obchodný zákonník §369 |
Countries marked with asterisks use their national central bank reference rates. Exact rates depend on those banks' announcements for H1 2026. Check the national central bank publication for the current period.
Notable Divergences
Finland is the only EU member state that applies ECB + 7% rather than ECB + 8%, giving a slightly lower statutory rate of 10.15% for H1 2026.
Poland and Romania have significantly higher effective rates in 2026 because their national central banks kept rates elevated longer than the ECB — Romania's BNR rate was approximately 5.5% as of early 2026, giving a statutory rate of around 13.5%.
Czech Republic similarly has an elevated rate due to the CNB maintaining its repo rate above ECB levels; the applicable rate for H1 2026 is approximately 12.75%.
The €40 / €70 / €100 Flat Recovery Fee
In addition to interest, Art. 6 of Directive 2011/7/EU entitles you to a minimum flat recovery fee per late invoice:
| Invoice Amount | Minimum Flat Fee |
|---|---|
| Up to €1,000 | €40 |
| €1,000 – €10,000 | €70 |
| Over €10,000 | €100 |
This fee is automatic — no proof of costs required. If your actual recovery costs (collection agency fees, legal letters) exceed the applicable flat fee, you can claim the full amount of reasonable costs instead.
Worked Example: €5,000 Invoice, 45 Days Overdue
Suppose you issued a €5,000 invoice with 30-day payment terms. Payment arrives 45 days after the due date — 45 days late. The invoice fell due on 1 February 2026, so the H1 2026 rate (11.15%) applies throughout.
| Component | Calculation | Amount |
|---|---|---|
| Principal | — | €5,000.00 |
| Statutory interest | €5,000 × 11.15% ÷ 365 × 45 days | €68.87 |
| Flat recovery fee (invoice €1,001–€10,000) | — | €70.00 |
| Total claim | €5,138.87 |
The additional claim beyond the principal is €138.87 — entirely automatic and enforceable under EU law without going to court.
How the ECB Rate History Affects Multi-Period Claims
If an invoice fell due in 2024 or 2025 and remains outstanding, you must calculate interest period by period using the correct rate for each half-year:
| Period | ECB Rate | Statutory Rate |
|---|---|---|
| H1 2024 | 4.50% | 12.50% |
| H2 2024 | 4.50% | 12.50% |
| H1 2025 | 3.65% | 11.65% |
| H2 2025 | 3.40% | 11.40% |
| H1 2026 | 3.15% | 11.15% |
For a claim spanning multiple periods, calculate the interest for each period separately and add them together. This is exactly what our Late Payment Calculator does automatically — enter your invoice date, due date, and outstanding amount, and it returns the total interest broken down by period, the applicable flat fee, and the full amount you can claim today.