What is the European Payment Order and how does it work? Step-by-step procedure, requirements, costs, and forms for recovering debts abroad
Imagine your company has supplied machinery to a client in Spain, but the payment never arrived. How can you recover that debt without engaging in lengthy litigation abroad? In cases like this, the European Payment Order comes into play, a legal tool specifically designed to facilitate cross-border debt recovery. It is a swift, entirely written procedure that allows a creditor to obtain a payment order valid in all EU member states (excluding Denmark). The main advantage is speed: typically, the judge issues the order within about 30 days from the application. Moreover, the procedure is straightforward – just fill out standard forms without excessive formalities – and the resulting order is automatically recognized and enforceable in every EU country without the need for further declarations or the so-called exequatur. In this guide, we will clearly explain what the European Payment Order is, when and how it can be requested, and how it proceeds step by step.
What is the European Payment Order
The European Payment Order (or European Payment Injunction – EPO) is a uniform civil procedure at the EU level that allows for the swift issuance of a payment order for uncontested pecuniary claims in cross-border debt collection. Simply put, it is a European order for payment procedure—similar to a payment injunction—usable when the creditor and debtor are located in different Member States.
It was introduced by Regulation (EC) No. 1896/2006 (amended by Regulation (EU) 2015/2421) and is directly applicable in all Member States of the Union except Denmark. The purpose of this regulation is to simplify and expedite the recovery of cross-border claims, ensuring that the obtained injunction can circulate freely in Europe without the need for intermediate recognition procedures.
From a practical standpoint, the European payment order is a payment order issued by a judge at the creditor’s request, instructing the debtor to pay a certain amount within 30 days or to file an objection within the same period. If the debtor does not object, the injunction becomes final and automatically enforceable in all EU countries.
The main advantages are:
- Reduced timeframes: issuance in about 30 days
- Written procedure: no hearings or appearances
- European validity: enforceable in all Member States without further formalities
- Lower costs: legal expenses halved compared to ordinary lawsuits
- Simplicity: standard forms in all EU languages
In situations like the one described, where a Spanish client fails to honor payment, navigating through European procedures and foreign regulations can be challenging. The Lawants law firm, specializing in debt recovery in Spain, directly assists Italian companies, managing the procedure from the application submission to the enforcement of the order. Contact us to assess your situation and act immediately, without unnecessary delays.
European Payment Order: Regulatory References and Legal Basis
The regulatory framework of the European payment order procedure is based on several regulations that are important to understand in order to navigate the subject correctly.
Main Legislation:
- Regulation (EC) No 1896/2006: establishes the European payment order procedure
- Regulation (EU) 2015/2421: amends the previous one, introducing significant changes from 14 July 2017
Related Legislation:
- Regulation (EU) No 1215/2012 (Brussels I-bis): determines jurisdiction
- Regulation (EC) No 861/2007: procedure for small claims (up to €5,000)
- Regulation (EU) 2020/1784: cross-border service of judicial documents
- Regulation (EC) No 805/2004: European enforcement order for uncontested claims
In Spain, the procedure is integrated into the civil procedural system through the Ley de Enjuiciamiento Civil, which provides for the direct application of the European regulation without the need for specific implementing rules. Spanish courts apply the procedure through the LexNET telematic system for authorized professionals.
When and Why to Use the European Payment Order
To effectively use the European order for payment procedure, several requirements must simultaneously be met, which we will analyze in detail.
The cross-border dispute is the first essential requirement. At least one of the parties must have residence or domicile in a Member State different from that of the court addressed. This international element is indispensable: if both creditor and debtor reside in the same State, national instruments must be used.
The claim must be monetary, liquid, and due. This means it must be a sum of money determined in its amount and already due at the time of the application. Requests for actions or delivery of goods, future claims, or those subject to conditions cannot be made. There are no minimum or maximum limits on the amount: the European order can be requested for any sum, from a few hundred to millions of euros.
The scope is limited to civil and commercial matters. Disputes related to fiscal, customs, administrative matters, matrimonial property regimes, successions, bankruptcies and insolvency proceedings, social security, and state liability for acts performed in the exercise of public powers are expressly excluded. Claims arising from non-contractual liability are generally excluded unless they have been agreed upon by the parties or there has been an admission of the debt.
Advantages Over National Procedures
The European order for payment offers significant advantages over national proceedings, especially for those who regularly deal with counterparts in other Member States. The main benefit is the elimination of exequatur: while a foreign payment order must be recognized in Spain through a specific procedure, the European order is immediately enforceable in all Member States.
The standardization of forms removes linguistic and procedural barriers. An entrepreneur can fill out the form in their own language and have it easily translated, without needing to know the procedural specifics of the debtor’s country. The timelines are predictable and uniform across the EU, with issuance expected within 30 days.
From an economic perspective, the initial costs are reduced: in several Member States, the court fees for the European Payment Order are significantly reduced compared to ordinary cases. In Spain, for instance, individuals are completely exempt from court fees. Additionally, since legal assistance is not mandatory in the initial phase, expenses can be further contained.
Jurisdictional Competence
Correctly determining the competent court is crucial to avoid dismissal of the application. Jurisdiction is determined on two levels: international (which State) and domestic (which court within that State).
International Jurisdiction
The Brussels I-bis Regulation establishes the criteria for determining the competent Member State. The general principle provides for the jurisdiction of the court of the debtor’s domicile (forum rei), but there are significant alternatives.
In contractual matters, the court of the place of performance of the obligation is also competent. For the sale of goods, this coincides with the place of delivery; for services, with the place of performance. If a company has delivered goods in its own country to a client in another Member State, it can choose whether to proceed before the court of the place of delivery or before the court of the debtor’s domicile.’s domicile.
For consumer debtors, special protective rules apply: the consumer can only be sued in their State of domicile, with limited exceptions. This enhanced protection requires particular attention when acting against individuals who have purchased for non-professional purposes.
Internal Jurisdiction
Once the competent State is identified, it is necessary to determine which judicial authority within that country can issue the order.
- In many Member States, jurisdiction follows ordinary domestic rules, with lower courts handling smaller claims and higher courts handling larger ones. Depending on the country, applications may still need to be submitted in paper form, since electronic filing for European procedures is not yet fully operational everywhere.
- In Spain, the European order is requested at the Juzgado de Primera Instancia of the place where the debtor has domicile or headquarters. The Spanish system allows electronic filing through LexNET for those represented by a solicitor, while private individuals can submit the application directly at the registry. For claims related to real estate, the judge of the location where the property is situated is competent.
In other Member States, jurisdiction is generally assigned to ordinary civil courts, with the exception of Hungary where notaries are competent. The European e-Justice Portal provides detailed information for each country.
The advantages of the European order are clear, but to achieve tangible results, it is crucial to prepare the documentation precisely, identify the competent court, and correctly follow each step. If you want to avoid errors and maximize the chances of success, contact the Lawants team: we support you step by step with expertise, experience, and direct presence in Spain.
How the European Payment Order Procedure Works
The procedure is structured in clearly defined successive stages, each with its own timelines and methods. Understanding this process is essential to correctly manage the procedure and maximize the chances of success.
The Application – Filling Out Form A
The procedure begins with the submission of the application through Form A, available in all official EU languages. The form must be filled out with precision and completeness to avoid requests for additional information that would extend the timeline.
The form requires the complete identification details of the parties, including tax codes and, if applicable, VAT numbers. The debtor’s address must be precise and up-to-date: an error can compromise the notification and thus the effectiveness of the entire procedure. It is crucial to clearly indicate the competent court, specifying not only the State but also the specific judicial office.
The amount claimed must distinguish principal, interest—including the applicable rate and calculation period—any contractual penalties, and costs. Interest should be calculated to a specified date, stating where applicable that it will continue to accrue until payment. The claim must be described concisely but completely. For example: “Supply of 100 electronic components, model XY, under order no. 123 dated 15 March, delivered on 30 April; invoice no. 456 dated 5 May for €25,000, due on 5 June and unpaid despite a reminder dated 20 June.
A distinctive feature compared to national procedures is that no documentary evidence needs to be attached. It is sufficient to describe the available documents (contract, invoices, correspondence) which can be produced in case of opposition. However, the creditor must declare that the information provided is truthful, assuming responsibility for it.
Particular attention should be paid to Appendix 2 of the form, where the creditor must indicate what they wish to happen in case of debtor opposition: proceed with an ordinary judgment, switch to the small claims procedure (if the claim does not exceed €5,000), or discontinue the procedure. This strategic choice must be carefully considered and cannot be changed later.
The Procedural Steps
Once the application is filed, the judge has 30 days to review and decide. This period can be suspended if additional information is needed, but it remains a record time compared to ordinary proceedings.
The judge’s review is purely formal: it checks for the presence of requirements, the completeness of the application, and the prima facie plausibility of the claim based solely on the creditor’s statements. There is no investigation or in-depth assessment of the merits. If remediable deficiencies are found, the judge sends the creditor Form B with a request for additions or corrections, setting a deadline to comply. It is essential to respond promptly and thoroughly to avoid rejection.
If the judge finds only part of the claim justified, they propose to the creditor a partial injunction via Form C. The creditor can accept, immediately obtaining a title for the reduced amount, or refuse, resulting in the rejection of the entire application. The decision depends on the circumstances: is it better to have a partial title now or risk losing everything by insisting on the full amount?
The rejection of the application, communicated with Form D, can result from irremediable defects: lack of jurisdiction, excluded subject matter, absence of a cross-border element, manifest unfoundedness. The rejection order is not appealable, but it does not preclude the resubmission of a corrected application or the use of other procedural tools.
Acceptance and Rejection of the Application
When the application passes the examination, the judge issues the European Payment Order using Form E. This document contains the payment order with precise details of the amounts due, broken down into principal, interest, and costs. It also includes essential information for the debtor: the 30-day period to pay or oppose, the warning that the order is based solely on the creditor’s statements, and the consequences of not opposing.
The order must be served to the debtor according to the methods provided by the Regulation and the laws of the country where the notification takes place. Proper notification is crucial: a defect can allow the debtor to request a review even after the ordinary deadlines have passed. The Regulation favors forms of notification with proof of receipt (registered mail with return receipt, personal delivery with signature), but also allows forms without direct proof when the former are unsuccessful.
In some Member States, it is the creditor’s responsibility to initiate notification within a specific deadline, often through a bailiff or postal service, failing which the order may lose its effectiveness.
Opposition to the European Payment Order
The opposition is the critical phase of the procedure, where it is determined whether the creditor will swiftly obtain their enforceable title or will have to face a substantive judgment.
Terms and Conditions
The debtor has 30 days from notification to file an objection using Form F, which is served along with the injunction. The simplicity of this action is striking: it is enough to indicate that the claim is disputed, without the need to explain the reasons. No lawyers are required, no elaborate justifications are needed; simply fill out the form and send it to the court that issued the injunction.
This ease of opposition balances the summary nature of the monitoring phase: since the creditor does not initially have to prove their claim, the debtor can block the injunction with a simple statement of dissent. The real arguments will be developed in the subsequent substantive proceedings, where both parties will need to prove their case.
The 30-day period is mandatory and its calculation follows European rules: the day of notification is excluded, and if the deadline falls on a public holiday, it is extended to the next working day. The debtor must consider transmission times, especially for international submissions: the objection must be received within the deadline, sending it is not sufficient.
Consequences of Opposition
Timely opposition has immediate and significant effects. The injunction loses its potential effectiveness: it can no longer become an enforceable title through the order for payment procedure. Instead, a contentious phase opens, which can follow three different paths, depending on what the creditor indicated in the initial application.
The most common scenario is the continuation as an ordinary trial before the same judge who issued the injunction. In many Member States, the judge assigns the creditor a deadline to file the introductory act of the merits trial, which then follows ordinary procedural rules. In Spain, the rules of juicio ordinario or verbal will apply depending on the value. This phase necessarily requires the assistance of a lawyer and involves the typical costs and timeframes of a civil trial.
If the claim does not exceed 5,000 euros and the creditor had requested it, the European Small Claims Procedure can be activated, which maintains simplified forms even in the contentious phase. This option preserves some advantages of speed and cost-effectiveness while ensuring the right to a fair hearing.
The third possibility, less intuitive but sometimes strategically sensible, is the discontinuation of the procedure without continuation. If the creditor had chosen this option, the opposition results in the termination of the procedure without the possibility of proceeding to trial. It may seem counterproductive, but it makes sense when the creditor wants to test the debtor’s reaction without committing to an expensive litigation, perhaps for modest claims or against presumably insolvent debtors.
An important aspect: the debtor is not informed of the choice made by the creditor. Therefore, they do not know whether their opposition will lead to a trial or the closure of the procedure. This mechanism prevents instrumental oppositions based on the calculation that the creditor will not proceed.
Enforcement of the Uncontested Order
When the 30 days pass without opposition, the European order achieves its goal: becoming an enforceable title valid throughout the European Union.
Declaration of Enforceability
The first step is to obtain Form G, which certifies the enforceability of the injunction. The creditor must request it from the court that issued the order, usually through a simple application to the court registry. The certificate confirms that the injunction has been duly issued and served, that the deadline for opposition has expired, and that no objections have been filed.
With this document, the injunction acquires the same force as a final judgment. It is no longer subject to challenge on the merits, except in the very limited cases of extraordinary review provided for by Article 20 of the Regulation. The creditor holds a title that can be immediately enforced in any Member State.
Cross-Border Enforcement
Enforcement in another Member State does not require any prior recognition. The creditor directly approaches the competent enforcement authority (court, bailiff, enforcement agent depending on the country) with the original injunction, the certificate of enforceability, and, if required, a certified translation in the local language.
Enforcement procedures follow the rules of the State where the debtor’s assets are located. Enforcement procedures follow the rules of the State where the debtor’s assets are located. For example, in Spain the rules of the Ley de Enjuiciamiento Civil on forced execution apply.
The enforcement authority cannot review the merits of the title nor raise public policy objections. It can refuse enforcement only in exceptional cases: if there is a prior incompatible decision between the same parties, if the debtor proves they have already paid, or if there is a subsequent agreement between the parties that modifies or extinguishes the debt.
Limits to Enforcement
The Regulation provides some extreme protections for the debtor through the mechanism of extraordinary review. The debtor can request the court that issued the injunction to review the order if they can demonstrate that they were unable to oppose it due to reasons not attributable to them: irregular notification that prevented them from becoming aware of the proceedings, force majeure, or exceptional circumstances that prevented them from responding, manifest error in issuance.
These cases are interpreted restrictively. It is not sufficient to claim not having received the document if the notification was carried out regularly according to the prescribed forms. A normal absence due to holidays or business trips does not constitute force majeure. Manifest error does not include substantive issues that could have been raised with ordinary opposition.
During the review, the enforcement authority may suspend or limit the enforcement, for example, by allowing only protective measures or by making continuation conditional on a bond from the creditor. It is a balance between protecting the creditor who has legitimately obtained the title and the debtor who invokes exceptional circumstances.
Costs and Timelines of the European Payment Order
The costs of the European payment order are structured to be accessible and proportional to the value of the claim. In some Member States, court fees are halved compared to ordinary cases, with amounts calculated on a sliding scale depending on the value of the claim. Additionally, there may be small fixed administrative fees.
In Spain, the situation is even more favorable: individuals are completely exempt from court fees, while companies pay approximately 100 euros plus a variable fee of 0.5% of the value exceeding 2,000 euros, with a maximum cap of 10,000 euros. This makes the procedure particularly advantageous for small entrepreneurs and professionals.
In addition to fixed costs, there are variable costs: document translations (200-300 euros per document), international notifications (variable depending on the method), and potential legal consultations. However, compared to an ordinary cross-border procedure, the savings are significant, especially if there is no opposition.
Timelines
The procedure is characterized by certain and swift timelines. The injunction is issued within 30 days from the complete application. There are then 30 days for any opposition from the debtor. If there is no opposition, a European enforcement order is obtained in about 60-70 days from the start. These are unimaginable timelines for ordinary proceedings, which in most Member States would take years.
The execution then follows national timelines, which vary according to the type of assets to be seized and local procedures. A garnishment can yield results in a few weeks, while a real estate execution requires months. However, the advantage of quickly obtaining the enforcement order is nonetheless decisive.
Forms and Practical Tools
The system of uniform forms is one of the strengths of the procedure. All forms are available for free on the European e-Justice Portal in fillable PDF format or through an online guided completion system. Each form has an identification code and an identical structure in all languages, facilitating cross-border recognition and use.
The Portal also offers the possibility to generate bilingual forms, which are extremely useful for international notifications. You can create a Form E in Italian with a Spanish translation alongside, so the Spanish debtor immediately understands the content even though the document is formally in Italian.
The online guided completion asks progressive questions and provides explanations for each field, reducing the risk of errors. You can save your work and resume it later, print drafts for review, and generate the final PDF for submission. It is a well-designed tool that makes the procedure accessible even to non-professionals.
Practical Tips for Completion
Experience teaches some fundamental tips for effective completion. First of all, always double-check addresses: an error in the debtor’s address can cause the notification to fail and nullify everything. Always use the full legal name of companies, not abbreviations or trade names.
When describing the claim, be specific but concise. Do not write a novel, but also avoid being cryptic. Indicate dates, document numbers, precise amounts. If there have been partial payments, indicate them and deduct from the total requested. For interest, always specify the rate (legal, contractual with percentage) and the calculation period.
Always keep a copy of every form sent and received, along with the related receipts. Create an organized file with all documents: it will be invaluable if you need to proceed to court. If completing in a foreign language, have the text reviewed by someone who knows it well: translation errors can create problems.
Professional support: Lawants offers assistance in the completion and review of forms, ensuring accuracy and completeness to avoid delays or rejections.
How Lawants Can Assist Your Company
Lawants is an international law firm specializing in cross-border debt recovery, with particular expertise in Italy-Spain commercial relations. Our structure, with professionals in both countries, offers an integrated service covering the entire process from initial analysis to final collection.
We offer a free preliminary assessment to verify the requirements and economic feasibility of the action. We handle the preparation and filing of the application, taking care of every detail to maximize the chances of immediate success. In case of opposition, our lawyers are ready to represent you in the substantive proceedings without the need to change your point of contact or law firm.
Our strength lies in our in-depth knowledge of both legal systems and our ability to coordinate actions across multiple jurisdictions. While other firms may rely on foreign correspondents with inevitable delays and additional costs, we operate directly with our own professionals. This results in greater control, faster timelines, and reduced costs.
Our quotes are transparent and often structured with a success fee component, aligning our interests with yours. For companies that regularly manage international credits, we offer advantageous packages and framework conditions.
Relying on a law firm with cross-border experience is often the key to effectively recovering debts abroad. Lawants offers integrated assistance for the entire European order for payment procedure, including the potential enforcement phase in Spain. If you need an immediate assessment or want to understand if your case is eligible, talk to us.
