If an Italian business pays you late, Italian law may entitle you to interest at 10.40% a year (second half of 2026), plus a fixed €40 per invoice and your recovery costs — automatically, without sending a formal demand first.
Many foreign creditors claim only the invoice amount. That leaves money on the table and weakens your negotiating position. Here is how the Italian late-payment rules work and how to use them.
Where the rules come from
Italy implemented the EU Late Payment Directive (2011/7/EU) through Legislative Decree 231/2002, as amended by Legislative Decree 192/2012. The rules apply to commercial transactions: contracts between businesses, or between a business and a public administration, for the supply of goods or services against payment. Consumer contracts are excluded.
Three things you can claim
| Item | Amount | Legal basis |
|---|---|---|
| Statutory interest | ECB reference rate + 8 percentage points: 10.40% a year from 1 July to 31 December 2026 | Art. 5, Legislative Decree 231/2002 |
| Fixed compensation | €40 per late payment, with no need to prove any cost | Art. 6 |
| Recovery costs | Further reasonable costs of recovering the debt, such as legal fees, beyond the €40 | Art. 6 |
The reference rate is published by the Italian Ministry of Economy and Finance every six months. For the second half of 2026 it is 2.40%, up from 2.15% in the first half. Higher surcharges apply to some sales of agricultural and food products.
Interest starts running automatically
Under Italian law, statutory interest runs from the day after the payment deadline, with no formal demand needed. The deadline is:
- 01the date agreed in the contract; or
- 02if nothing was agreed, 30 days from receipt of the invoice or of the goods or services.
Between businesses, payment terms longer than 60 days are valid only if expressly agreed and not grossly unfair to the creditor. Clauses that exclude interest or the recovery costs, or that are grossly unfair to the creditor, can be declared void.
A worked example
A German supplier issues a €50,000 invoice to an Italian distributor, due on 1 March 2026. The distributor pays nothing. By 31 October 2026, eight months late, the supplier can claim:
- 01€50,000 principal;
- 02about €3,435 in statutory interest (10.15% until 30 June, 10.40% from 1 July);
- 03€40 fixed compensation;
- 04documented recovery costs.
Interest keeps accruing until payment, and the rate is updated each semester.
Does Italian law apply to your contract?
This is the question foreign creditors most often overlook.
EU creditors. Every EU Member State has implemented the same Directive. Even if your contract is governed by German, French or Greek law, you will have a very similar right to interest and the €40 compensation.
Non-EU creditors (UAE, USA, UK, Switzerland). The law governing the contract matters. If you chose Italian law, or if Italian law applies under the EU conflict-of-law rules, you benefit from Legislative Decree 231/2002. If your own law governs the contract, interest is calculated under that law, and the result can be very different.
Check your terms and conditions before you send a demand. If they are silent, we can tell you which law most likely applies.
How to use it in practice
- 01Calculate the full amount — principal, interest to date, €40 per invoice — and put it in your formal demand. A precise figure shows the debtor you know your rights.
- 02Send the demand by certified email (PEC) from an Italian lawyer. It interrupts the limitation period and often leads to payment or a settlement.
- 03Use interest as a bargaining chip. Waiving part of the interest in exchange for immediate payment is a common and effective settlement tool.
- 04Claim it in court. If you file for a payment order (decreto ingiuntivo), statutory interest and the recovery costs can be included in the application.
Time limits
The right to claim interest becomes time-barred after five years (Article 2948 of the Italian Civil Code). The principal claim for goods and services is generally subject to a ten-year limitation period, but shorter periods apply in some cases. Do not wait.
We can help
Send us your unpaid invoices and contract. We will calculate what you are entitled to under the applicable law and send a formal demand to your Italian debtor.
Interest rates change every six months: check the current rate before relying on the figures above.
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