Unpaid commercial debts directly affect a business’s liquidity. The appropriate legal step depends on the contract, the available documents, any dispute concerning the debt, limitation and the debtor’s solvency.

The Legal Framework: Law 4152/2013

Subparagraph Z.3 of Law 4152/2013, implementing Directive 2011/7/EU, applies to payments constituting consideration for commercial transactions between businesses or between businesses and public authorities. It does not apply indiscriminately to every monetary obligation.

Where the creditor has performed its contractual and statutory obligations but has not received timely payment, it may be entitled to statutory late-payment interest in Greece without a prior demand. The statutory rate is the applicable reference rate plus eight percentage points. Because the reference rate changes every six months, a permanent legal article should not state a fixed total percentage.

The creditor is also entitled to fixed compensation of EUR 40 for recovery costs and, where proven and reasonable, further recovery costs exceeding that amount.

Where no contractual payment date has been set, interest generally begins after 30 calendar days from the statutory reference event, such as receipt of the invoice or of the goods or services. In business-to-business transactions, a period exceeding 60 days may be agreed only where it is expressly stipulated and is not grossly unfair to the creditor. Special rules and limited exceptions apply to public authorities.

Stage 1: Formal Demand

A formal demand is not always a legal prerequisite for interest or court proceedings. It remains important because it clearly identifies the debt, sets a payment deadline, proves communication and may support settlement discussions.

A demand letter does not generally interrupt limitation. Interruption may result, among other matters, from the debtor’s acknowledgement or the commencement of appropriate judicial proceedings under the Civil Code.

Stage 2: Payment Order

A Greek payment order for a commercial debt may be sought where the monetary claim and its amount are proven by a public or private document and the requirements of Articles 623 et seq. of the Code of Civil Procedure are satisfied. A unilateral invoice is not necessarily sufficient on its own. The contract, orders, delivery or acceptance documents, correspondence, acknowledgements of balance and other supporting records must be assessed together.

From 1 May 2026, applications fall under the new system under which payment orders are issued by lawyers entered in special registers, pursuant to Law 5221/2025 and its implementing measures. The order remains an enforceable instrument and the debtor may challenge it within the statutory period.

Failure to file the first challenge should not be described simply as immediate finality. The Code provides for a second service and a further challenge period; only after that period expires without action does the payment order acquire res judicata effect.

Stage 3: Civil Action

A civil action is appropriate where the documentary conditions for a payment order are not met or where the dispute requires full judicial determination. The debtor’s disagreement does not itself preclude a payment order if the claim is sufficiently proven in writing. Conversely, a civil action is not necessarily a last resort but a different procedural route.

Limitation: Do Not Allow Time to Work in the Debtor’s Favour

There is no single limitation period for all overdue B2B claims in Greece. Many claims by traders, manufacturers or professionals for goods, work or services fall within the five-year limitation period of Article 250 of the Civil Code. Under Article 253, that period runs from the end of the year in which the claim arose and could be judicially pursued. Other claims may fall within the general twenty-year period or a shorter special period.

Limitation must be calculated separately for each invoice and legal basis. Acknowledgement, settlement, partial payment and judicial steps may materially affect the calculation.

Practical Guidance for Businesses

• Keep written records of the order, delivery, acceptance and invoicing.
• Preserve every document or electronic communication acknowledging the debt or outstanding balance.
• Check limitation before entering lengthy negotiations or sending repeated informal demands.
• Assess the debtor’s solvency and the realistic prospects of enforcement at an early stage.
• Use contracts with a clear payment date and late-payment terms that comply with mandatory law.

Frequently Asked Questions (FAQ)

Is a formal notice always required before proceedings?

No. It may be useful or required by a particular contractual clause, but it is not a universal prerequisite for every action or payment order.

Is an invoice sufficient for a payment order?

Not always. Written proof of both the claim and its amount is required and will commonly arise from a combination of documents.

Who now issues a payment order?

For applications governed by the new regime from 1 May 2026, issuance is assigned to a lawyer on a special register under the statutory procedure.

Are all commercial debts subject to five-year limitation?

No. Limitation depends on the nature and legal basis of the claim. Five years is common but not universal.

Can the EUR 40 recovery amount be claimed?

Yes, for commercial transactions falling within Law 4152/2013 where the debtor is in late payment.

Conclusion

Effective commercial debt recovery in Greece requires early review of the evidence, limitation and the debtor’s financial position. Formal demand, payment order and civil action are not mandatory consecutive stages; the correct route depends on the specific debt.