Czech late payment rules and debt recovery

Every Prague freelancer has a story about the invoice that was due in 30 days and paid in 90. Czech law is not hostile to the creditor, but it rewards the one who acts quickly, writes things down and knows which step comes next. The debtor has rights too, and the process is more formal than many foreign business owners expect.

This explainer describes the system in general terms. It is not legal advice. For an actual debt, see a Czech lawyer: the order of steps and the evidence you hold decide most cases.

When interest starts to run

Under the Civil Code (Act no. 89/2012 Coll.), a debtor is in default when it fails to pay on the due date. The due date is whatever the contract or invoice says. If neither says anything, a default rule applies, which normally requires the creditor to demand payment and set a reasonable period. Put the due date on every invoice and in every contract. It settles an argument before it starts.

Default interest (úrok z prodlení) is not something the parties negotiate from scratch. A government regulation sets the rate that applies unless they agree otherwise: the Czech National Bank's repo rate plus 8 percentage points (as of 2026; check the Czech National Bank and the regulation). The repo rate in question is the one in force on the first day of the calendar half-year in which the default began, and that rate then applies for the whole period of default (Government Regulation no. 351/2013 Coll.). A debt that fell due in March and a debt that fell due in August can therefore carry different rates, but the rate on each one does not move later. Between businesses the creditor can also claim flat-rate compensation for recovery costs of CZK 1,200 per claim under the same regulation (as of 2026; check the official source).

A contract may set a different rate, and a contractual penalty (smluvní pokuta) is a separate tool. It has to be clearly agreed, and in practice in writing so that it can be proved, and a court can reduce a penalty that is disproportionately high (Civil Code, § 2051), so an extreme clause is no guarantee. The EU Late Payment Directive set the broader principle, which Czech law applies to commercial transactions.

Steps a creditor usually takes

The law does not fix the sequence, but most creditors follow the same path.

A friendly reminder. An email or call, invoice attached, soon after the due date. Many late payments are administrative: a missing purchase order, a holiday, an invoice sent to the wrong department.

A formal reminder (upomínka). A written demand with a new deadline, quoting the invoice number, amount, due date and the interest running. Send it so you can prove delivery: through a data box (datová schránka) if the debtor has one, by registered post, or by email with a receipt.

A pre-action demand (předžalobní výzva). A final written demand warning that the matter will go to court unless the debt is paid by a stated date. Courts take such a demand into account when deciding costs, so it is worth sending.

A court claim. The creditor files at the competent court. For uncontested money claims Czech courts offer an expedited procedure, the payment order (platební rozkaz), which the court may issue without a hearing. If the debtor objects in time, the case continues as an ordinary proceeding. If not, the order becomes enforceable. For cross-border claims within the EU there is also a European order for payment procedure. For the court system, see how the Czech courts are structured.

Enforcement. A final judgment or enforceable order entitles the creditor to enforcement, carried out by a private bailiff (soudní exekutor), usually through deductions from wages, attachment of bank accounts or sale of property. The creditor applies to the court, which authorises a bailiff. Enforcement has limits on what can be taken, such as exempt amounts for wages.

Evidence and timing

A claim is only as good as its paper trail. Keep the signed contract or order, proof of delivery or timesheets, the invoice and the reminders. If the customer disputed the work, keep that correspondence as well. A customer who raises no objection to an invoice for a long time is in a weaker position, though silence is not the same as acceptance and each case turns on its facts.

The general limitation period is three years under the Civil Code (as of 2026; check the official source). Once it has run, a debtor who invokes limitation can defeat the claim even though the debt still exists. A written acknowledgement of the debt by the debtor, which a partial payment can also amount to, starts a new limitation period, but do not rely on that without advice.

If the debtor is a company in trouble

An insolvent debtor (see Czech insolvency law explained) is a different situation. Once insolvency proceedings begin, individual enforcement is generally stopped and the creditor must register its claim in the insolvency proceeding. Check the public insolvency register before spending money on a court action. Our guide to free public registers to check lists the other useful ones, including the commercial register and the cadastre.

Preventing the problem

Most late payment is predictable. Check a new customer in the commercial and insolvency registers before the first order. State the due date, the interest and the bank details in the contract, and agree how invoices will be sent. For larger orders, ask for an advance or stage payments. Send the invoice the day the work is delivered, since the clock does not start until you do.

A debt-collection agency is an option, but beware of agencies that buy a debt and sell it on, and make sure any assignment of the claim is notified to the debtor in writing. If the debtor is a consumer, extra rules on fees and conduct apply, and they fall outside this article.

Open your accounting records today and sort the unpaid invoices by age. The oldest is the most urgent: the longer it waits, the harder it is to collect.

This is a general explainer, not legal or tax advice.