Reminder fees in Germany and Austria: how much are you allowed to charge?

Is there a statutory reminder fee?

No. Neither the German Civil Code (BGB) nor the Austrian Civil Code (ABGB) or Commercial Code (UGB) sets a fixed amount per reminder. What does exist are three other claims: reimbursement of the costs caused by default, a lump sum of 40 euros between businesses, and late-payment interest. Every amount you put on a reminder must rest on one of these claims.

The terms differ: in Germany people usually speak of reminder fees or reminder costs (Mahngebühren, Mahnkosten), in Austria of reminder charges (Mahnspesen). They mean the same thing, namely the cost of the reminder itself. The rules behind them differ, though, so we deal with the two countries separately.

A typical mistake sits in the dunning software: an amount is stored automatically for each reminder stage, often 5, 10 or 15 euros. The fact that the software suggests it does not make it permissible. Check today which amounts your system automatically adds to reminders.

Germany: what may you charge for a reminder?

Default first, then costs

In Germany, reminder costs are damage caused by default. That only exists once the customer is already in default. Default occurs through a reminder after the due date, through a contractually fixed payment date, or at the latest 30 days after the due date and receipt of the invoice. With consumers, the 30-day rule only applies if the invoice expressly points it out.

It follows that the customer does not pay for the reminder that first triggers default. In 2025 the Federal Court of Justice (BGH) confirmed that the invoice and the default-triggering first reminder belong to your own receivables management. Only costs incurred after that are recoverable.

Only actual material costs

Even after default has occurred, you may only charge actual material costs: printing, envelope, postage and dispatch. Your own working time and that of your staff is not included, even if you use dedicated staff for it. In a 2019 case, the Federal Court of Justice accepted around 0.76 euros for printing, enveloping, franking and sending a reminder, and struck down a reminder fee of 2.50 euros because it included staff costs.

A flat fee in your terms and conditions is only valid with consumers if it does not exceed the typical damage and expressly allows the customer to prove that a lower loss occurred. In practice this means: for a letter you are in the region of about one euro; an email causes hardly any material costs.

40 euros between businesses

If your customer is not a consumer, you are additionally entitled to a lump sum of 40 euros in the event of default. This also applies to interim and instalment payments. However, the lump sum is offset against legal enforcement costs: material costs of further reminders and, later, collection costs are not added on top but set off against the 40 euros. There is no lump sum with consumers.

Late-payment interest

Interest is a separate item and runs automatically from default. The base rate has been 1.52 per cent since 1 July 2026. With consumers, late-payment interest is 5 percentage points above it, i.e. 6.52 per cent; between businesses it is 9 percentage points above it, i.e. 10.52 per cent a year. The calculation is shown in our guide to calculating late-payment interest in Germany.

Austria: what reminder charges may you claim?

Reminder charges as enforcement costs

In Austria, default begins as soon as the payment term expires; no reminder is needed for that. Under the ABGB, reminder charges are enforcement costs. Recoverable are the necessary costs of appropriate out-of-court enforcement measures, insofar as they are proportionate to the claim. The debtor must be at fault for the default. Anyone who demonstrably never received an invoice owes no reminder charges.

The Austrian Supreme Court (OGH) has repeatedly struck down rigid flat fees: reminder charges of 20 to 60 euros regardless of the size of the claim, 20 euros per reminder without being limited to a proportionate amount, and most recently 36.50 euros each for a reminder notice, a reminder and a warning. These were clauses in terms and conditions, but the direction is clear nonetheless. Ongoing reminder letters that contribute nothing to payment are not recoverable. Keep reminder charges low, justify them with postage and specific effort, and do not apply them automatically to every reminder.

With consumers, the Consumer Protection Act (KSchG) also applies: if the customer agrees after default to pay enforcement costs, these must be shown separately and itemised and must be necessary for recovery.

40 euros under the UGB

Between businesses you can claim a lump sum of 40 euros as compensation for enforcement costs when payment is late. You need to prove neither costs nor fault on the part of the debtor. Costs that exceed the 40 euros can be claimed additionally under the ABGB if they are necessary and proportionate.

Maximum rates for collection agencies

There is a separate regulation with maximum rates for collection agencies. It is tiered by the size of the claim and by the step, such as processing, first and second reminder, monitoring or an instalment agreement. The maximum rates are a ceiling, not an entitlement: the debtor only reimburses what was necessary and proportionate in the individual case.

Late-payment interest

With consumers, the statutory interest is 4 per cent a year. Between businesses it is 9.2 percentage points above the base rate, with the rate on the first day of the half-year being decisive. On 1 July 2026 the base rate was 1.53 per cent, which gives 10.73 per cent for the second half of 2026. On 16 September 2026 the base rate rose to 2.03 per cent; this only affects the half-year starting 1 January 2027. If the debtor is not responsible for the delay, the rate remains 4 per cent. More in our B2B guide to late-payment interest in Austria.

What may I charge? The overview

Print this table and compare it with the settings in your dunning software.

Example: 800 euros, two reminders, two countries

Example: a beverage wholesaler delivers goods worth 800 euros to a restaurant. Payment by 1 September 2026 has been agreed in the contract. The customer does not pay; the wholesaler sends reminders on 15 September and 1 October, and payment arrives on 31 October 2026, i.e. 60 days late.

If the customer were a consumer, the picture would be different. Under German law there would be no lump sum, interest would be 8.57 euros, and the two reminders would only add material costs, around one euro per reminder for letters. Because the payment date was agreed, neither reminder is the one that triggers default here. Under Austrian law, interest would be 4 per cent, i.e. 5.26 euros, plus proportionate reminder charges if the customer is at fault for the default.

The example shows: with business customers, the lump sum is the largest item. Do not forget it, but claim it only once per claim.

How to show reminder fees correctly

A correct reminder separates every item. Here is how to proceed:

• state the principal with invoice number and due date
• show late-payment interest with period, rate and amount
• for business customers, apply the 40-euro lump sum once per claim, not per reminder
• in Germany, charge nothing for the first, default-triggering reminder
• name further costs only with reason and amount, such as postage
• set a new payment deadline with a specific date

The payment reminder generator creates a formally clean reminder with separate notes for Germany and Austria. Also check the cost clause in your terms and conditions before relying on it with customers.

What applies if you instruct a collection agency?

If payment still does not arrive after your reminders, further reminders of your own rarely make sense. How many reminders are usual in Austria before the handover is shown in our guide to payment reminders in Austria. From this point on, collection costs arise that the defaulting debtor must bear within the legally permitted limits. In Germany, reimbursement is capped at lawyers’ fees, which is particularly little for small amounts, as our article on debt collection for small amounts calculates. In Austria, the maximum rates of the regulation and the ABGB standard apply.

At incaseof.law, 100 % of the principal claim goes to you. Recovery and duration are not guaranteed. In regular out-of-court collection there are no costs from incaseof.law, even if the debtor does not pay, and no success fee on your principal claim. Court fees and, in Austria, MANZ transmission fees only arise once you approve court proceedings. Which party bears which item is shown on the pricing page.