Debt Recovery in Spain: How to Collect Money Owed to You

Debt Recovery in Spain: How to Collect Money Owed to You

Whether you are owed money by a builder, a tenant, a business partner, or a private individual in Spain, recovering that debt can be frustrating. Here is how the Spanish legal system works and what your options are.

The Proceso Monitorio: Spain Fast-Track Debt Recovery

The proceso monitorio is the most common and efficient way to recover a debt in Spain. It was designed to be quick, simple, and affordable.The stronger your evidence, the more likely the court will accept your claim immediately. Acceptable evidence includes:

Invoices and contracts. Written agreements, signed contracts, purchase orders, and unpaid invoices are the strongest evidence. Make sure they clearly identify the debtor and the amount owed.

Delivery notes and receipts. Proof that goods were delivered or services were provided, signed by the debtor or their representative.

Bank statements and transfers. Records showing payments you made to the debtor (for example, deposits to a builder who did not complete the work) or records of bounced cheques.

Email and WhatsApp correspondence. Written communications where the debtor acknowledges the debt, agrees to pay, or requests more time to pay. Spanish courts accept electronic communications as evidence.

Community fee certificates. For unpaid community of owners fees, the president certificate confirming the debt is sufficient to start the proceso monitorio.

Common Debt Recovery Situations on the Costa Blanca

Builder or Contractor Who Did Not Finish the Work

You paid a builder a deposit or stage payments, but the work was never completed or was done badly. You can claim the money back plus damages. If the builder has disappeared or refuses to respond, the proceso monitorio followed by enforcement against their assets is often the most effective route.

Tenant Who Owes Rent

Unpaid rent is one of the most common debt recovery situations in Spain. You can pursue the unpaid rent through the proceso monitorio while simultaneously starting eviction proceedings. The two processes can run in parallel.

Unpaid Community Fees

Communities of owners can use a simplified version of the proceso monitorio to recover unpaid fees from property owners. The community president issues a certificate of the debt, which is sufficient to start the claim. The debtor property can also be embargoed to guarantee payment.

Business-to-Business Debts

Unpaid invoices between businesses are common, particularly in the construction and hospitality sectors. Spanish law allows you to claim not just the debt itself but also interest for late payment and reasonable recovery costs.

Private Loans Between Individuals

If you lent money to someone and they have not repaid it, you can recover the debt through the courts. Even if there is no written contract, evidence such as bank transfers, WhatsApp messages, or witnesses can support your claim.

What If the Debtor Has No Money?

This is the most difficult situation in debt recovery. Even with a court order in your favour, if the debtor has no assets, no income, and no property, enforcement becomes very difficult. This is why acting quickly is critical — the longer you wait, the more time the debtor has to hide or dispose of assets.

Your lawyer can request a court order to investigate the debtor assets, including bank accounts, property, vehicles, and employment. If assets are found, they can be seized to satisfy the debt.

Limitation Periods: Do Not Wait Too Long

In Spain, most debts have a limitation period of 5 years (since the 2015 reform). This means you must start legal proceedings within 5 years of the debt becoming due. After that, the debtor can argue the claim is time-barred. Some specific debts have shorter periods, so it is important to seek legal advice promptly.

Areas We Serve

We handle debt recovery cases across the Costa Blanca, including Javea (Xabia), Moraira, Denia, Altea, and the wider Valencian Community. We represent both individuals and businesses in debt recovery proceedings.If the debtor contests, the case moves to ordinary proceedings which can take 6 to 18 months depending on the court workload and complexity.

Do I need a lawyer for the proceso monitorio?

For debts under 2,000 euros, a lawyer and procurador are not required. For debts between 2,000 and 250,000 euros, a lawyer is not required for the initial filing but is strongly recommended, especially if the debtor contests. If the case moves to ordinary proceedings, a lawyer and procurador become mandatory.In the proceso monitorio, if the debtor does not respond and a payment order is issued, you can also claim interest and reasonable recovery costs.

What if the debtor is in another country?

Cross-border debt recovery within the EU is possible through the European Payment Order procedure or the European Small Claims Procedure (for debts under 5,000 euros). For debtors outside the EU, international conventions and bilateral treaties may apply. We have experience with cross-border debt recovery involving UK, French, Dutch, and German debtors.

Can I recover a debt if there is no written contract?

Yes. Spanish law does not require a written contract for most debts. Bank transfers, emails, WhatsApp messages, witnesses, and other evidence can prove the debt exists. The proceso monitorio accepts any documentary evidence that shows a debt is owed.