Last updated: 25 October 2026
A German client is in default (Verzug) once they ignore a Mahnung sent after the due date, miss an agreed calendar date, or let 30 days pass after the due date and receipt of your invoice (§ 286 BGB). From that day you can charge Verzugszinsen: 10.52% a year against business clients and 6.52% against private clients, based on the Basiszinssatz of 1.52% that applies from 1 July 2026. Business clients also owe a flat €40 fee (§ 288 BGB).
When is a client legally late?
“Overdue” and “in default” are not the same. Interest only runs once the client is in default (Verzug). There are three ways to get there:
1. You send a Mahnung after the due date
The invoice must already be due. If you agreed no payment term, it is due immediately (§ 271 BGB), so a Mahnung can follow straight away. The client is in default from the day they receive it.
2. An agreed calendar date passes
If your contract says "payment by 15 November 2026" or "within 14 days of delivery", no Mahnung is needed (§ 286 Abs. 2 BGB). The date has to be agreed with the client. A due date that only appears on your invoice is usually not enough on its own.
3. 30 days pass after the due date and receipt of the invoice
For payment claims, the client is in default at the latest 30 days after the invoice is due and received (§ 286 Abs. 3 BGB). For private clients this only applies if the invoice points it out, for example: "Bei Zahlung nach 30 Tagen ab Zugang dieser Rechnung geraten Sie ohne weitere Mahnung in Verzug."
Verzugszinsen rates for 2026
The rate is the Basiszinssatz plus a fixed markup: 9 percentage points when the client is a business, 5 points when the client is a private person. The Bundesbank resets the base rate every 1 January and 1 July.
| Period | Basiszinssatz | Business client | Private client |
|---|---|---|---|
| 1 Jan 2026 to 30 Jun 2026 | 1.27% | 10.27% | 6.27% |
| From 1 Jul 2026 | 1.52% | 10.52% | 6.52% |
Source: Deutsche Bundesbank, base rate announcement of 30 June 2026. The next change is due on 1 January 2027.
How to calculate Verzugszinsen
The formula is: amount × annual rate × days in default ÷ 365. Interest is calculated on the gross invoice amount, including VAT if you charged it.
Example: €2,000 invoice to an agency, 30 days in default in October 2026
Interest: €2,000 × 10.52% × 30 ÷ 365 = €17.29
Flat fee for a business client: €40.00
Total you can claim on top of the invoice: €57.29
No VAT is added to interest or to the €40 fee. They are compensation, not payment for a service.
How to write a Mahnung
There is no required form. A good Mahnung names the invoice, the amount, a clear new deadline, and what happens next. You can write it in German or English. Here is a short version in German:
Sehr geehrte Damen und Herren,
für die Rechnung Nr. 2026-031 über 2.000,00 EUR habe ich bis heute keinen Zahlungseingang feststellen können. Die Rechnung war am 16. September 2026 fällig.
Bitte überweisen Sie den Betrag bis zum 7. November 2026 auf das unten genannte Konto. Nach Ablauf dieser Frist berechne ich Verzugszinsen gemäß § 288 BGB sowie die Pauschale von 40 EUR.
Mit freundlichen Grüßen
In English, the same structure works: reference the invoice number and date, state the amount and original due date, set a new deadline of 7 to 14 days, and mention interest under § 288 BGB.
If the client still does not pay
Friendly reminder (Zahlungserinnerung)
Optional. Often a forgotten invoice. A short email a few days after the due date solves most cases.
Mahnung with a deadline
This is the step that puts the client in default if the other routes have not already. Keep proof that you sent it.
Court payment order (Mahnbescheid)
You can apply online at online-mahnantrag.de without a lawyer. The court fee depends on the amount claimed. If the client does not object, you get an enforceable title.
Lawyer or collection agency
For larger amounts or disputed work. Their fees can be claimed from a client in default, minus the €40 flat fee already charged.
Prevent it on the invoice: agree a payment term in your contract, print the due date (Zahlungsziel) on every invoice, and send the invoice the day the work is done. For private clients, add the 30-day default notice from step 3 above.
Frequently asked questions
How much late payment interest can I charge in Germany in 2026?
From 1 July 2026 the Basiszinssatz is 1.52%. Against a business client you can charge 9 percentage points above it, which is 10.52% a year (§ 288 Abs. 2 BGB). Against a private person it is 5 points above, which is 6.52% (§ 288 Abs. 1 BGB). From 1 January to 30 June 2026 the rates were 10.27% and 6.27%. The base rate changes every 1 January and 1 July.
When is a client in Germany legally late with a payment?
In one of three ways (§ 286 BGB): you send a Mahnung after the invoice is due and they still do not pay; or you agreed a fixed calendar date for payment and it passes; or 30 days pass after the due date and receipt of your invoice. For private clients the 30-day rule only applies if your invoice says so.
Can I charge the €40 late payment fee?
Yes, against business clients. Once a business client is in default you can claim a flat €40 (§ 288 Abs. 5 BGB), in addition to interest. It is credited against any lawyer or collection costs you claim later. It does not apply to private clients.
How many reminders do I have to send in Germany?
Legally, one. A single Mahnung after the due date puts the client in default. The three-step routine of a friendly reminder followed by two formal Mahnungen is a custom, not a rule. Most freelancers send one polite reminder and one firm Mahnung with a deadline.
Does a Mahnung have to be in writing?
No form is required by law, but send it by email or letter so you can prove it. Name the invoice number, the amount, and a clear new payment date.
Do I add VAT to late payment interest?
No. Verzugszinsen and the €40 flat fee are compensation for late payment, not payment for a service, so no VAT is added. This is the same for Kleinunternehmer and VAT-registered freelancers.
How long do I have to claim an unpaid invoice?
The standard limitation period is 3 years, counted from the end of the year the claim arose (§§ 195, 199 BGB). An invoice due in 2026 can be claimed until 31 December 2029. A court payment order (Mahnbescheid) stops the clock.
General information, not legal advice. For a disputed claim, ask a lawyer.
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