Corporate clients who pay late: what the Late Payment Act lets a lawyer claim
When the client is a company or another professional, a lawyer's fees fall within the scope of Law 3/2004 on combating late payment. The law sets payment deadlines, automatic interest and a minimum compensation for collection costs. It does not apply to consumer clients.
For a lawyer who practises on their own account, getting paid on time is as important as invoicing. When the client is a company or another professional, the reference rule is Law 3/2004 of 29 December establishing measures to combat late payment in commercial transactions. The consolidated BOE text is shown as updated to 1 October 2014.
Does it apply to a lawyer's fees?
Yes, when the client is a company or a professional. Article 2.a) defines a company as any natural or legal person acting in the exercise of their independent, economic or professional activity. A lawyer who provides services to a company, or to another professional, carries out a commercial transaction between businesses within the meaning of the law.
The law does not apply, by contrast, to payments for transactions involving consumers (Article 3.2.a). Fees paid by a private individual for a personal matter fall outside.
Payment deadlines
| Situation | Article 4 rule |
|---|---|
| The contract sets no period | Thirty calendar days from receipt of the goods or provision of the services, even if the invoice was received earlier |
| There is an acceptance or verification procedure | Its duration cannot exceed thirty calendar days |
| The parties agree a period | It cannot be longer than sixty calendar days |
For a lawyer, the key is in the engagement letter: it is the natural place to set the payment period, within the legal limit of sixty days. We explain it in the editorial "The engagement letter should be the rule".
Automatic late-payment interest
Article 5 establishes that the debtor falls into default and must pay the agreed interest or that set by law without need for notice or demand by the creditor.
If none has been agreed, Article 7 sets the late-payment interest at the sum of the interest rate applied by the European Central Bank plus eight percentage points.
40 euros for collection costs
Article 8 allows the creditor to claim a fixed amount of 40 euros for collection costs, in addition to proven collection costs exceeding that amount.
Abusive clauses
Under Article 9, a contractual clause or practice relating to the date or period of payment is void when it is manifestly abusive to the creditor's detriment.
This matters to lawyers working for large clients who impose their general purchasing conditions: an excessive payment period can be challenged.
The link with e-invoicing
Mandatory e-invoicing between businesspeople and professionals will add information on the acceptance and payment of each invoice, which will make it easier to prove when the delay occurs. We cover this in the guide to mandatory e-invoicing for lawyers.
How to apply it at the firm
- Set the payment period in the engagement letter, not exceeding sixty days if the client is a company or professional.
- State on the invoice the due date and the reference to late-payment interest.
- Monitor due dates and claim in writing when they pass.
- Calculate interest with the European Central Bank reference rate plus eight points, unless agreed otherwise.
- Add the 40 euros for collection costs to the claim.
- Distinguish consumer clients, to whom the law does not apply.
If the claim goes to court, remember that in most civil matters an appropriate dispute resolution method must be attempted first, as we explain in the guide to the precondition for suing. More guides in Solo and small-firm lawyers.
Fuentes
- Ley 3/2004, de 29 de diciembre, por la que se establecen medidas de lucha contra la morosidad en las operaciones comerciales (BOE-A-2004-21830, texto consolidado). Accessed 18 October 2026.
The specific data in this article come from the official sources cited.
