Payment reminders before debt collection in Austria

What is an order for payment procedure in Austria?

A reminder and collection process is the structured path a creditor follows to recover an outstanding claim, from the first friendly reminder to court action. In Austria, the stages of this process are less strictly regulated than many assume: the sequence is largely a matter of practice.

The typical sequence is straightforward: an invoice is issued, the payment deadline passes and the debtor does not pay. The claim is then due and in default. The creditor can send reminders, claim late-payment interest and, if necessary, appoint a collection agency or bring a court claim.

When will a claim be due?

A claim is due as soon as the agreed payment deadline has expired. If an agreement is missing, it is deemed to be due as soon as the service has been provided and the price is fixed. The difference to the reminder is important: the delay in payment does not arise only from a reminder, but already from the lapse of the deadline. Moreover, a transfer is only deemed to be timely if the amount has been received on the creditor's account on the due date.

Which payment deadlines apply in Austria?

The period of payment depends on who the contractual partners are. An agreed period of up to 60 days is generally allowed between companies. The payment becomes due to consumers as soon as the service is provided and the price is fixed, unless otherwise agreed.

In the daily work of incaseof.law the majority of outstanding receivables has a payment period of 14 to 30 days, in business between companies are 30 days of the normal case. In fact, is often paid only after 45 to 60 days, if at all. Exactly this interval between maturity and payment costs companies liquidity.

How many reminders to the collection are common?

Legally, there is no need for a single reminder, in practice two to three are common. Neither one nor two or three reminders are required in Austria: If a claim is due and is not paid, the creditor can immediately activate or sue a debt collection agency. This is confirmed by the Austrian Chamber of Commerce and the consumer protection agencies alike.

Why two to three reminders still make sense

Not every late payment is malicious. Often a bill is simply overlooked, and a friendly reminder solves the problem. A clearly structured reminder run with fixed intervals increases the payment rate noticeably. Companies that automatically send their reminders and send them at fixed intervals achieve success rates of around 88 percent at incaseof.law. The key is not to warn as often as possible, but to act as quickly and consistently as possible. The three usual steps look like this:

• 1. Reminder, the payment reminder. Friendly notice shortly after expiry of the deadline, factual tone, set new deadline.
• Second payment reminder. Definitely, but factually. Clear indication of the consequences in case of non-payment, new deadline with concrete date.
• 3. Reminder, the last reminder. Announcement that the claim will be handed over to a debt collection agency or a lawyer if not paid by that date.

A formally correct first payment reminder with time limit and interest notice generates the Payment reminder generator in a few minutes. The guide shows how the entire process looks like How debt collection works in Austria.

Is debt collection permitted without prior payment reminder?

Yes. Austrian collection can proceed without a prior reminder when default has already begun on expiry of an agreed payment deadline. In practice, creditors usually send a reminder to preserve the business relationship. Immediate handover is particularly useful for debtors known to be unwilling to pay or large amounts where each week matters.

Payment reminder fees in Austria: what is permitted?

Reminder fees are permitted in Austria only where reasonable. Five to ten euros per reminder is common and generally accepted by courts. Much higher charges may fail in court, and reimbursement requires the debtor to be responsible for the delay.

Anyone who has been proven to have never received an invoice will not have to pay a fee. For transactions between companies, the Austrian Commercial Code (UGB) also provides for a special feature: The creditor can demand a lump sum of 40 euros for the costs associated with the delay without having to prove a concrete expense. In addition, the payment and collection costs must be documented and are proportionate to the claim.

For incaseof.law The model works in favour of the creditor: if legally permissible, the costs of default are transferred to the debtor side. Thus, no costs arise for companies to collect their outstanding invoices. The complete list is on the page Debt collection costs.

What are the late-payment interest in Austria?

In addition to reminder fees, late payment interest is payable, and the amount of which depends on the contractual partners. Compared to consumers and where the debtor is not at fault, it is four percent per year, between companies 9.2 percentage points above the base interest rate.

The Oesterreichische Nationalbank sets the base rate twice a year. Since 1 July 2025, it has been 1.53 percent. For business between companies, this currently results in a default rate of 10.73 percent per year, but only in the event of a default.

Legal basis from the legal information system of the Federal Government, call July 2026. Base rate: Oesterreichische Nationalbank, as of 1 July 2025. Information on incaseof.law: own data, as of 2026.

For example, a EUR 5,000 business claim overdue for six months generates approximately EUR 268 in interest at 10.73 percent per year, calculated pro rata for half a year. At the four-percent consumer rate, it would be approximately EUR 100. This shows how quickly the cost of an unpaid invoice grows. For a specific invoice, use the Late-payment interest calculator the interest rate run out in one minute.

What can a debt collection agency in Austria do?

A debt collection agency is a private company that acts on behalf of creditors but has no official authority. It may send reminders, claim interest and the statutory lump sum and prepare a court proceedings. It must not act like an authority and not demand more than the regulation allows.

Permitted actions:

• in writing, by telephone and by e-mail remind of the open request
• late-payment interest and, between companies, charge the flat rate of 40 euros
• Offer payment agreements and instalment payments
• Preparing and bringing the court order for payment

Not allowed:

• enter the debtor's home or seize property, only a court may
• threatening or exerting pressure beyond factual indications
• charge more than the Austrian Maximum Debt Collection Fees Regulation allows
• enforce a demand that clearly does not exist

If a debt collection letter appears suspicious to you, for example with missing information about the creditor, with payment requests on foreign accounts or with striking errors, you should not pay and contact the Chamber of Labour. Whether a provider is even admitted shows the business information system Austria: incaseof.law is registered there under the GISA number 32140156.

What's after the debt collection?

If reminders and out-of-court collection are unsuccessful, the court proceedings will follow. The creditor will bring an order for payment, the court will issue a order for payment, and if the order is not followed, the claim can be enforced by enforcement.

Payment-order claim and payment order

The creditor shall bring the order for payment to the competent court. The district court shall have jurisdiction over claims up to 15,000 euros, over which the regional court, usually the court at the defendant's seat. The court shall issue a conditional order for payment. The debtor shall then pay 14 days or lodge an objection within four weeks.

Objection to the order for payment

File the objection in writing with the competent court. An objection moves the case to ordinary civil proceedings, where both sides present their arguments. If no objection is filed, the payment order becomes final and has the effect of a judgment.

How much does a lawsuit cost?

No legal representation is necessary up to a dispute value of 5,000 euros, the creditor can bring the order for payment himself. From 5,000 euros there is a duty of representation. The costs consist of court fees, possible attorney fees and ancillary costs. If successful, the creditor can demand them back from the debtor. This is precisely the reason for many companies to outsource the entire process to a platform such as incaseof.law, so that it runs automatically and without their own costs.

When do outstanding claims expire in Austria?

Money claims from deliveries and services expire three years after maturity in Austria. After expiry of this period, the claim can no longer be enforced in court. A reminder, even by registered letter, does not interrupt the limitation period, only a judicial procedure does so.

Periods of limitation according to the General Civil Code, retrieved in the legal information system of the federal government, July 2026. No legal advice in individual cases.

If the creditor has a judicial title such as a judgment or an undisputed order to pay, the deadline is extended to 30 years. The message is the same in both cases: whoever leaves an unpaid invoice will no longer negotiate the claim, but over time. Every week delay reduces the probability that the claim will be fully settled.

Send reminders yourself or instruct a debt collection agency?

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.

Practically, that means three things:

• You write the first payment reminder yourself. A correct template with time limit and interest note provides the Payment reminder generator.
• Hand over the claim after the second unsuccessful reminder. You can submit it online and Debt collection services, without contract and without minimum volume.
• For companies based in Vienna, the Debt collection agency in Vienna Responsibility, address and procedure in one place.

incaseof.law is an officially licensed collection agency in Austria and Germany. Its model has been confirmed by the Supreme Court, its success rate is around 88 percent and you retain 100 percent of the principal. For the steps after handover, see How debt collection works.

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