Unpaid invoice or debt — Luxembourg: how to get paid

Steps to recover an unpaid debt in Luxembourg

Recovering an unpaid invoice or debt in Luxembourg follows a structured path, from informal pressure to court-ordered enforcement. The procedure you choose depends primarily on the amount of the claim and the nature of the debtor (commercial counterparty or private consumer). Three main stages apply in practice: amicable reminder, formal notice (mise en demeure), and judicial proceedings. The Grand Duchy has no single procedure called injonction de payer; instead, it uses a dual system — the ordonnance conditionnelle de paiement before the Justice de Paix for claims up to EUR 15,000, and the ordonnance sur requête before the District Court for claims exceeding EUR 15,000.

The amicable reminder (relance amiable)

Before engaging any legal procedure, always attempt to recover the debt amicably. This is not merely courteous — it preserves the commercial relationship and, in practice, resolves the majority of unpaid invoices at minimal cost.

• First reminder: A polite phone call or e-mail shortly after the due date, referencing the invoice number, amount, and due date. Keep a written record of all contacts.
• Second reminder: A written reminder sent by e-mail with read-receipt or by registered letter, restating the amount due and setting a clear payment deadline (typically 8 to 15 days).
• Debt-collection agency: For undisputed commercial debts, you may instruct a licensed debt-collection agency in Luxembourg. The debtor bears recovery costs: the creditor can request a flat fee of EUR 40 to compensate for recovery costs without the necessity of a reminder, and can also claim a reasonable indemnity to cover all other costs which exceed this amount, including expenses for a lawyer or a debt-collection company.
• Late-payment interest accrues automatically in commercial transactions (B2B) from the day after the payment due date, without any reminder being required (see the "Costs and Timelines" section for current rates).

If the debtor does not respond or refuses to pay within the set deadline, proceed to a formal notice.

The formal notice (mise en demeure)

The mise en demeure is the last step before court proceedings. It formally puts the debtor in default (en demeure) and has several legal effects: it triggers the running of interest (if not already running), interrupts the limitation period (prescription), and signals that litigation is imminent. It can be sent by the creditor directly or through a bailiff (huissier de justice).

Mandatory and recommended contents

• Full identification of the creditor and the debtor (names, addresses, legal form if applicable)
• Precise description of the debt: invoice reference(s), date(s), amount(s) of principal, applicable VAT
• Legal basis: contract, purchase order, service agreement, or applicable law
• Amount of late-payment interest claimed and the applicable rate (ECB reference rate + 8 % for B2B, or the annual Grand-Ducal rate for B2C)
• Flat recovery fee of EUR 40 (automatically due under the law of 18 April 2004, as amended)
• Clear and firm payment deadline (typically 8 to 15 days from receipt)
• Warning that failure to pay within the deadline will result in legal action without further notice
• Signature of the creditor or their authorised representative

How to send it: By registered letter with acknowledgement of receipt (lettre recommandée avec accusé de réception) as a minimum. For maximum legal weight — and to ensure the document can be used directly as evidence in court — have a bailiff (huissier de justice) serve it. Bailiff fees are regulated and are typically between EUR 50 and EUR 150 depending on the complexity.

Key legal reference: Loi modifiée du 18 avril 2004 relative aux délais de paiement et aux intérêts de retard, as amended by the Loi du 29 mars 2013. See: guichet.public.lu — Payment deadlines / Late payment interest.

Judicial proceedings (payment order or equivalent)

If the amicable phase fails, Luxembourg offers three main judicial routes depending on the amount and the cross-border dimension of the claim.

Route A — Claims up to EUR 15,000: Ordonnance conditionnelle de paiement (Justice de Paix)

Before the Justice de Paix, conditional payment orders and summonses (citation) are used to recover debts of up to EUR 15,000. Both the conditional payment order and the summons must comply with certain formalities.

The ordonnance conditionnelle de paiement is the Luxembourg equivalent of a payment order for small claims. It is governed by Articles 133 to 140 of the Nouveau Code de procédure civile (NCPC). Here is how it works:

1. File a written application (requête) at the registry (greffe) of the competent Justice de Paix (there are Justices de Paix in Luxembourg-City, Esch-sur-Alzette, Diekirch, and Remich). No standard form is required. The application must identify both parties, state the grounds for the claim, and be accompanied by all supporting documents (invoices, contracts, delivery notes, correspondence).
2. The judge examines the application ex parte (without the debtor being heard). If the claim appears justified, the judge issues a conditional payment order (ordonnance conditionnelle). If not, the application is rejected by a non-appealable order.
3. The order is served on the debtor by a bailiff. The signification of the conditional payment order interrupts the prescription and triggers the running of interest. The act of service specifies the amount of costs payable by the debtor and, on pain of nullity, reproduces the text of Article 135 of the NCPC.
4. The debtor has 15 days from service to file an objection (contredit). Although the time limit for entering an objection is 15 days, in reality it is possible to enter an objection for as long as the creditor has not applied for an enforceable order. It is rare for creditors to ask for an enforceable order to be issued immediately after the 30-day period, so debtors often have more time than is provided for by law.
5. If no objection is filed: the creditor requests the court to render the order enforceable (titre exécutoire). The order can only be rendered enforceable within six months from the expiry of the 15-day period granted to the debtor. After that deadline, the order is considered lapsed (non avenue). The creditor must therefore act promptly.
6. If the debtor files an objection: the debtor's objection stays the proceedings, which means an enforceable order cannot be issued immediately. Interest continues to accrue from the date on which the order was served. The judge examines the objection; if well-founded, the original order is annulled and the case proceeds to a full contradictory hearing.
7. Enforcement: once the order is enforceable, enforcement is carried out by a bailiff, who can proceed with wage garnishment (saisie sur salaire), third-party attachment (saisie-arrêt), or seizure of movable assets (saisie-exécution).

Representation: A lawyer is not required to file the application before the Justice de Paix, but legal assistance is recommended for contested cases.

Route B — Claims above EUR 15,000: Ordonnance sur requête (Tribunal d'Arrondissement)

For debts of more than EUR 15,000, Luxembourg law allows recovery by means of an application to the district court for a provisional order procedure (ordonnance sur requête). This provides the fastest and most economic method of recovery for larger claims.

• A creditor wishing to obtain a provisional order for an amount of more than EUR 15,000 should apply to the president of the district court with jurisdiction for the place where the debtor has their domicile, unless the creditor can rely on a valid choice of jurisdiction clause. There are two district courts in the Grand Duchy: one in Luxembourg-City and one in Diekirch.
• This procedure permits a creditor to recover a claim exceeding EUR 15,000 that cannot be seriously disputed. The order for payment is issued on an ex parte basis and the debtor must be a Luxembourg resident.
• The application must contain the full identification of both parties, the subject matter, grounds, and supporting documents. There is no standard form.
• The creditor does not need to be represented by a lawyer in order to apply for an order for payment. However, for civil (non-commercial) disputes before the District Court, a lawyer is compulsory.
• Proceedings involving claims in excess of EUR 15,000 fall within the jurisdiction of the District Court, which is seised by writ of summons (assignation). When the District Court deals with commercial disputes, the involvement of a lawyer is not compulsory but is strongly recommended.
• The debtor again has 15 days to file an objection. The same rules on enforceability and time limits apply as for the Justice de Paix procedure.

Route C — Cross-border claims within the EU: European Order for Payment

In addition to Luxembourg domestic procedures, the European order for payment procedure set out in Regulation (EC) No 1896/2006 of 12 December 2006 is available. This is the appropriate route when the debtor is domiciled in another EU Member State. The application is filed using the standard Form A before the competent Luxembourg court. The debtor has 30 days to lodge a statement of opposition. If no opposition is filed, the order becomes enforceable across the EU.

Enforcement measures available once a title is obtained

• Third-party attachment (saisie-arrêt): this procedure enables a creditor to freeze any sums or assets that are in the hands of a third party and owed to the debtor. Upon service of the attachment by a bailiff, the third party must no longer remit any funds or assets to the defendant.
• Seizure and forced sale of movable assets (saisie-exécution): carried out by a bailiff; only tangible movable property may be subject to this procedure.
• Foreclosure on real estate (saisie-immobilière): leads to public auctioning of the debtor's real property.
• European Account Preservation Order (EAPO): available under Regulation (EU) No 655/2014 for cross-border cases; it prevents the debtor from transferring or withdrawing funds up to the amount specified in the preservation order, but may only be requested where a creditor has already obtained an enforceable judgment in a Member State.

Costs and timelines

Late-payment interest rates

Luxembourg law distinguishes sharply between B2B and B2C interest rates.

Formula for calculating late-payment interest (B2B):
(Principal amount × legal interest rate × number of days overdue) ÷ (365 × 100) = interest due

The "amount due" for calculation purposes is the principal amount that should have been paid within the contractual or legal deadline, including all applicable taxes, rights, royalties or costs indicated on the invoice.

For current rates at all times, consult: mj.gouvernement.lu — Taux d'intérêt légal and guichet.public.lu — Late payment interest.

Flat recovery fee

The creditor can claim a flat fee of EUR 40 to compensate for recovery costs, without any need to have sent a prior reminder. This amount is automatically due by operation of law in B2B transactions.

Court and procedural costs

For exact current court fee schedules, contact the relevant court registry directly or consult: justice.public.lu — Formulaires et greffes.

Indicative timelines

FAQ

Is a lawyer mandatory to file a payment order in Luxembourg?

The creditor does not need to be represented by a lawyer in order to apply for an order for payment before either the Justice de Paix or the District Court (for commercial disputes). However, if the debtor is not a trader and the case is brought before the District Court in civil matters, the assistance of a lawyer is compulsory. Even where it is optional, legal representation is strongly recommended once a claim is contested, to ensure proper drafting of procedural documents and effective representation at hearings.

What happens if the debtor contests the payment order?

The debtor has 15 days from the service of the conditional payment order to file an objection (contredit). The debtor's objection stays the proceedings, meaning an enforceable order cannot be issued immediately; however, interest continues to accrue from the date on which the order was served on the debtor. The judge then examines the objection, and if considered well-founded, records a reasoned order declaring the original payment order null and void. The case then proceeds to a full contradictory hearing on the merits. The procedure on the objection must be commenced within six months of the date of the objection; otherwise the original order is considered lapsed.

Can I recover late-payment interest even if the contract is silent on the subject?

Yes. In B2B (commercial) transactions, late-payment interest accrues automatically by operation of law from the day after the payment due date, without any need for a contractual clause or a prior reminder. The law of April 18, 2004 on payment delays and late interest payments, as modified by the law of March 29, 2013, governs the applicable rate: ECB base rate plus 8 %. Adding a mention on your invoices is optional but strongly recommended for clarity. In B2C transactions, different and more restrictive rules apply: interest only starts running three months after receipt of goods or completion of services, and the professional must prove that the invoice was addressed to the consumer in the month following that date.

My debtor is based in another EU country — what procedure applies?