Calculating late-payment interest in Austria: a B2B guide

Our Register study "Waiting for money" classifies the capital commitment of Austrian companies: with methodology, earnings tables and complete PDF. It expressly distinguishes balance sheet receivables from overdue invoices.

What exactly are late-payment interest?

Interest on default is the legal compensation for a customer withholding money that is due to you. As soon as the agreed payment deadline has been exceeded, the outstanding claim becomes interest-bearing without you having to prove any concrete damage.

Late payment causes real costs: you may need bridging finance, miss supplier discounts or postpone investment. Late-payment interest provides standardised compensation for these costs.

In Austria, as a creditor, you have the right to claim late-payment interest in business with consumers as well as between companies. The difference lies in the interest rate and at the time the default occurs. We take a close look at both in this guide.

Late payments are not marginal. The European Payment Report of the credit management provider Intrum leads payment default year after year as one of the biggest liquidity risks for European and Austrian companies. For smaller companies, which depend on punctual arrivals, the clean handling of the delay often decides on their own solvency.

Late-payment interest is only one part of the process. If an Bill not paid, the process runs from a friendly payment reminder through a formal demand to a debt collection agency, with late-payment interest accruing throughout.

When will a business customer be in default?

The default usually occurs automatically between companies once the agreed payment deadline has been exceeded. A separate reminder is not necessary for this. If your invoice is "payable within 30 days", the delay begins on the 31st day.

This is the most important difference to business with consumers, and many companies are not aware of it. Send a reminder, so that late-payment interest starts accruing. The entitlement arises when the deadline expires, not when the first reminder is sent.

Where no payment deadline was agreed, the law and nature of the service determine when payment is due. Check whether a payment request is needed and record agreed deadlines in writing. Do not assume a general Austrian 30-day rule.

How do you calculate late-payment interest in Austria?

Calculate late-payment interest as outstanding principal × annual interest rate ÷ 365 × days overdue. The correct rate depends on whether the customer is a business or a consumer.

The statutory late-payment interest rate between companies is 9.2 percentage points higher than the base interest rate. The base interest rate is fixed by the Austrian National Bank twice a year and was 1.53 percent for the first half of 2026. This results in a late-payment interest rate of around 10.7 percent per year. In contrast, it is only 4 percent per year for consumers and where the debtor is not at fault.

Basics: late-payment interest rate between companies according to the Austrian Commercial Code (UGB), consumer rate according to the General Civil Code, base interest rate according to the Austrian National Bank, as of the first half of 2026. No legal advice in individual cases.

The following chart shows the effect of this rate over time for an outstanding invoice of EUR 15,000.

A calculation example step by step

The formula becomes clear the fastest on a specific case. Suppose you have invoiced a business customer over 15,000 euros with 30 days of payment deadline. He pays only after 90 days, so 60 days is in default.

Interest rate from the base rate of the Austrian National Bank, as of the first half of 2026, plus 9.2 percentage points according to the Austrian Commercial Code (UGB). The base rate is fixed every six months, check it for your case at the payment date. No legal advice in individual cases.

Around 265 euros interest plus 40 euros flat rate, makes about 305 euros in addition to the actual invoice. In case of larger amounts or longer delay, this quickly adds up: An outstanding claim of 50,000 euros, which is overdue for three months, already brings about 1,320 euros in late-payment interest at the same rate.

If you do not want to calculate the exact amount for a specific invoice by hand, the Late-payment interest calculator in one minute, including the daily base rate.

What is the EUR 40 fixed compensation?

You are entitled to a flat-rate amount of 40 euros per claim between companies in addition to the late-payment interest. This flat-rate applies automatically without you having to prove actual costs.

The flat rate covers the internal expenses incurred by the late payment. If your actual costs of legal proceedings exceed this amount, for example through a licensed debt collection agency or necessary information about the debtor, you can also demand the higher amount. The 40 euros are the base, not the upper limit.

In practice, this claim is often forgotten. On a single invoice, it hardly matters, but with many outstanding claims per year, a noticeable sum comes together, which you are entitled to without additional costs.

When do outstanding invoices expire in Austria?

Claims arising from deliveries and services expire three years after maturity in Austria. After expiry of this period, the debtor may refuse payment even if the claim was originally entitled. The late-payment interest expires within the same period as the principal claim.

An example: If an invoice was due on 1 April 2026 and remained unpaid, the claim is generally time-barred on 1 April 2029. Until then, you can enforce it with interest, then only if the debtor voluntarily pays.

An often underestimated point is important: a simple reminder does not interrupt the statute of limitations. Only a court order, a lawsuit or a acknowledgement of the claim by the debtor, such as a partial payment, inhibits or interrupts the deadline. Anyone who leaves an outstanding invoice for two years will in the end no longer negotiate about the claim, but about time.

How do you prevent late payment in the B2B?

Five measures have proved their worth in practice in order to reduce defaults on payments between companies before interest and flat-rate payments become an issue at all.

• Clear terms of payment. State payment terms clearly in the contract and invoice. A specific date or “14 days net” is clear; “soon” is open to interpretation.
• Check credit quality in advance. Especially with new partners or large orders, information is worthwhile. This is not a mistrust, but lived risk management.
• Issue the invoice immediately. The sooner the bill is out, the sooner the deadline runs. Anyone who invoices weeks after the performance gives away time.
• Structured payment reminders. The first payment reminder may be friendly, the second clearly. Third payment reminder it should be clear that the next step is a professional debt collection.
• Hand over claims early. The fresher the claim, the higher the recovery rate. An outstanding invoice for six months has much worse chances than one that was due four weeks ago.

Which mistakes cost businesses the most money?

The most expensive mistake with regard to late-payment interest is not to use the claim at all. Those who dispense with interest and flat rate signals defaulting customers that late payments remain without consequences, and thus worsens the payment morale in their own customer base.

Four more mistakes appear again and again:

• Set the wrong interest rate. Claims between companies are paid at the higher rate. Whoever applies the consumer rate of 4 percent gives away cash.
• Acting too late. Each day reduces the probability of a full payment and at the same time the three-year period runs until the limitation period.
• Failing to document actions. Without proof of performance, invoice and service, every judicial step becomes vulnerable. Anyone who only send reminderses orally, is there without proof in the event of a dispute.
• Forgetting the fixed compensation. The 40 euros per claim are automatically available to you between companies and cost nothing extra.

When is professional collection worth it?

For an initial invoice reminder, handling it yourself makes sense. If a second reminder receives no response, a licensed collection agency is usually more economical: your working time may now cost more than the process.

A licensed debt collection agency does not only communicate with the defaulting payer. It calculates the late-payment interest correctly, sets the flat rate, documents the transaction and, if necessary, can initiate the court order procedure. How debt collection works in Austria.

The more recent the claim, the higher the recovery rate. For transparent information on incaseof.law’s costs, see Debt collection costs; the process is shown in How debt collection worksYour principal claim remains 100 percent with you.

This guide explains the legal situation in Austria in general and does not replace advice in individual cases. State of the cited standards and the base rate: July 2026.