Unpaid invoice in Germany: reminders, interest, deadlines

At the end of 2026, a deadline passes that many freelancers have never heard of. On 31 December, every claim that arose in 2023 becomes time-barred under German law. A friendly reminder email does not stop that clock. If you still have money from 2023 outstanding, you need to act before the end of the year, and with more than a polite email.

For most late payments, things are calmer. The rules still matter, because they decide when interest starts and what you may charge.

When is a German client in default?

§ 286 of the Civil Code (BGB) offers three routes.

The standard route is a reminder after the due date. Once the client has received it and still does not pay, they are in default.

No reminder is needed if a payment date was agreed in advance, in the quote, the order confirmation or the contract. A date you only print on the invoice yourself is generally not enough under the prevailing view of German courts. Say your accepted quote read „payment by 31 October 2026“. Then default begins on 1 November automatically.

Finally, the 30-day rule. For payment claims, the debtor is in default no later than 30 days after the due date and receipt of the invoice, even without a reminder. Against consumers this only applies if the invoice points out this consequence. One sentence does it, ideally in German: „Zahlen Sie nicht innerhalb von 30 Tagen nach Zugang dieser Rechnung, geraten Sie ohne weitere Mahnung in Verzug.“ It means: if you do not pay within 30 days of receiving this invoice, you are in default without further reminder.

A reminder template

The letter does not need the word „Mahnung“. What counts is an unambiguous request for payment. Even a politely worded payment reminder can legally be a reminder in the sense of § 286. Here is a bilingual version with invented details:

Zahlungserinnerung / Payment reminder: invoice 2026-0118 of 2 September 2026

Dear Ms Albers,

we have not yet received payment for our invoice 2026-0118 for €2,380.00, which was due on 16 September 2026. Please transfer the amount by 31 October 2026 to the account shown below.

If your payment has crossed with this letter, please disregard it.

No threats and no fees at the first stage. The last line costs nothing and saves relationships. Always include the invoice number and date, so your client’s accounts team can match the payment. How to set up numbers that make this easy is in the article on the invoice number.

Late payment interest and the flat fee

From the start of default, § 288 BGB allows interest: 5 percentage points above the base rate for consumers, 9 points between businesses. The Bundesbank sets the base rate twice a year. Since 1 July 2026 it has been 1.52 %, up from 1.27 %, according to the Bundesbank’s announcement (German).

Amount outstanding

€2,380.00

Rate: 1.52 % base rate + 9 points

10.52 % p.a.

Interest: 2,380 × 10.52 % × 45 ÷ 365

€30.87

Flat fee under § 288(5) BGB

€40.00

Claim on top of the invoice amount

€70.87

Fictional example. Interest calculated per day on a 365-day basis.

The €40 only applies if the debtor is not a consumer. It is credited against later legal fees, so you do not get it twice. For small invoices, the flat fee is often worth more than the interest. Someone who pays a €300 invoice three weeks late owes less than two euros in interest at 10.52 %, while the €40 applies regardless of amount or delay.

Whether you actually charge either is a business decision. With a regular client who is two weeks late once, many let it go. With someone who routinely takes 60 days, an invoice for interest sends a clear message.

Partial payments

Partial payment raises the question of what it covers. The law decides. Under § 367 BGB, a payment goes first towards costs, then interest, and only then the main claim. That works in your favour, because the main claim keeps accruing interest. If the client explicitly specifies otherwise when paying, you may refuse the payment. Accept it, and their allocation applies.

What happens if nothing happens

1. Day 0Invoice with an agreed payment date and bank details.
2. Due date + 7 daysFriendly reminder with a new deadline.
3. Due date + 21 daysFormal reminder with interest and, for businesses, the €40 fee.
4. Due date + 35 daysFinal deadline, announcing the court payment order procedure.
5. After thatOnline application for a payment order, or handover to a collection agency or lawyer.

The days are a suggestion, not a rule. The payment order (Mahnbescheid) is applied for at the competent dunning court, conveniently through the judiciary’s portal online-mahnantrag.de. The court does not check whether the claim is justified. Should the client object, the case moves to regular proceedings.

For limitation, this step is decisive. The standard period is three years under § 195 BGB and starts at the end of the year in which the claim arose, under § 199 BGB. A reminder does not pause it. Service of a payment order does.

If you or your client are abroad

Many foreign freelancers keep German clients after moving on, or work for German companies from abroad. German procedure still works for you. If you no longer have a general place of jurisdiction in Germany, the local court Amtsgericht Wedding in Berlin is solely responsible for your payment order application, under § 689 ZPO. The online portal handles that case too.

For debtors in another EU country, the European Payment Order is an alternative. It is a standardised EU procedure for undisputed cross-border money claims, run through forms that exist in every EU language. For clients outside the EU, enforcement depends on that country’s rules, and a local collection agency or lawyer is usually the realistic route.

Before you chase: is it the invoice?

Some invoices go unpaid because the client’s accounts team parked them. If a mandatory detail is missing, your client cannot deduct the VAT, and many companies only pay once it is corrected. A quick run through the invoice checker can save you an awkward reminder. Found a problem? See how to cancel or correct an invoice.

From 2027 there is a second reason. Sending a PDF to a German business client once the e-invoicing mandate applies to you means your invoice is formally not compliant. Larger clients will reject it.

With many clients, do not run reminders by hand. Good invoicing tools send them automatically. For payment matching and dunning built into your own platform, OnlineBuilders supports that kind of billing feature.

This week’s next step: filter your open invoices for anything from 2023. For each one, you need either the money or a payment order before mid-December.

Check an invoice for mandatory details: Tick what your invoice contains.

Questions people ask

How many reminders do I have to send?

One is enough legally, and sometimes none is needed. The sequence of friendly reminder, first and second dunning letter is a custom, not a law. You do not need three reminders before applying for a court payment order.

Can I write the reminder in English?

Yes, if your client understands it. With German private clients, a German reminder avoids any later argument that they did not understand it. A short bilingual letter is a good compromise.

What is the German base rate in 2026?

The base rate has been 1.52 % since 1 July 2026, up from 1.27 %. Late payment interest is 5 points above it for consumers and 9 points above it between businesses. The rate changes on 1 January and 1 July each year.

I have moved abroad. Can I still use the German court procedure?

Yes. If you no longer have a general place of jurisdiction in Germany, the local court Amtsgericht Wedding in Berlin handles your application for a payment order. Within the EU, a European Payment Order is an alternative for cross-border claims.