Payment reminder in Germany: deadlines, interest, court order

The job is done, the invoice sent – but no money arrives. A formal payment reminder (Mahnung) helps. It is more than a polite note: under German law it puts the client in default and opens the way to interest and a court payment order.

When is the client in default?

Under § 286 BGB default occurs

• as soon as you send a reminder after the due date,
• without a reminder if a fixed payment date was agreed,
• at the latest 30 days after the due date and receipt of the invoice; for consumers only if the invoice expressly points this out.

What belongs in a reminder?

1. invoice number, date and outstanding amount,
2. a clear request to pay with a new deadline (usually 7 to 14 days),
3. your bank details,
4. default interest and flat fee where applicable,
5. a note that you will take legal steps afterwards.

Several reminder stages are not required – one reminder is enough. Send it in a way that lets you prove receipt.

Default interest and flat fee

• Consumers: 5 percentage points above the base rate per year.
• Businesses: 9 percentage points above the base rate plus a flat €40 (§ 288(5) BGB).

The Bundesbank publishes the base rate twice a year. Reasonable costs of a reminder sent after default has occurred may also be claimed.

Court payment order

If the client still does not pay, apply online for a payment order (Mahnbescheid) at the competent court. If the debtor does not object within two weeks, you can apply for an enforcement order. If they object, the case goes to the competent court.

Limitation period

Claims usually become time-barred after three years, counted from the end of the year in which they arose. A simple reminder does not suspend the limitation period; a court payment order does.

Prevention is better

Write correct invoices with all mandatory details and a clear payment term. Payments to a dedicated business account are easier to monitor, and a reliable business address ensures replies and court mail reach you.