# Late payment interest in Germany: 10.52% from July 2026

> Verzugszinsen between businesses in Germany are 9 points above the Bundesbank base rate: 10.52% from July 1, 2026. Formula, worked example, €40 fee.

Canonical: https://www.invoqk.com/blog/late-payment-interest-in-germany-10-52-from-july-2026
Last updated: 2026-10-31

## Key takeaways

- Late payment interest between businesses in Germany is 10.52% a year from July 1, 2026: the Bundesbank base rate of 1.52% plus 9 points under section 288 paragraph 2 BGB.
- A creditor can also claim a flat €40 fee against a business debtor, and a calendar due date puts the client in default without a reminder, according to section 286 BGB.
- On a €3,200 invoice paid 47 days late, interest is €43.35 and the flat fee brings the extra claim to €83.35.

Late payment interest between businesses in Germany is 10.52% a year from July 1, 2026. That is the Bundesbank base rate of 1.52% plus the 9 percentage points that section 288 of the German Civil Code (BGB) adds for claims against a non-consumer. A creditor can also claim a flat €40 fee. This guide shows the rate history, the formula, two worked examples and the wording that puts a client in default.

## What are Verzugszinsen and what is the rate in 2026?

**Verzugszinsen** are the default interest a debtor owes once a payment is overdue and the debtor is legally in default. For a business invoice, the rate is 9 percentage points above the Basiszinssatz. The Bundesbank announced a base rate of 1.52% valid from July 1, 2026, up from 1.27%. The business rate is therefore 10.52% a year until the next change on January 1, 2027.

The **Basiszinssatz** is the base interest rate that the Bundesbank publishes twice a year under section 247 BGB. It changes on January 1 and July 1 by the same number of percentage points as the European Central Bank's main refinancing rate has moved since the last change. In its [announcement of the 1.52% base rate](https://www.bundesbank.de/en/press/press-releases/announcement-of-the-basic-rate-of-interest-as-of-1-july-2026-adjustment-to-1-52--964754), the Bundesbank gives the ECB rate as 2.40% on June 30, 2026, up 0.25 points from 2.15%.

The 10.52% figure is a calculation from two published inputs, not a number the Bundesbank prints. The Bundesbank base rate is 1.52%, and section 288 paragraph 2 BGB sets the margin at 9 points for transactions in which no consumer is involved.

## How do you calculate Verzugszinsen on an invoice?

Multiply the invoice amount by the annual rate and by the days in default, then divide by 365. This is the standard simple-interest formula for a monetary debt. The statute text read for this guide gives the rate, not the day-count method, so treat the 365-day convention as common practice.

**Interest = invoice amount × annual rate × days in default ÷ 365**

For a €3,200 invoice at 10.52%, annual interest is €336.64. That is €0.92 a day, rounded to the nearest cent.

![Chart of the German base rate and the resulting business default rate for each half-year from January 2023 to July 2026](https://www.invoqk.com/charts/late-payment-interest-in-germany-10-52-from-july-2026-rates.svg)

Understanding the mechanism behind the figure is worthwhile for anyone who invoices regularly, because the default rate is not negotiated between the parties but follows automatically from European monetary policy, which means that an increase in the European Central Bank's main refinancing rate eventually raises the amount a late-paying client owes, while a reduction lowers it. Consequently, a creditor cannot assume that the rate printed in an old template remains accurate.

### How has the rate changed since 2023?

The business default rate peaked at 12.62% in January 2024 and has fallen to 10.52% in July 2026. The Bundesbank publishes the full base rate table on its [page on the Basiszinssatz under section 247 BGB](https://www.bundesbank.de/de/bundesbank/organisation/agb-und-regelungen/basiszinssatz-607820).

| Valid from | Basiszinssatz | Business rate (+9 points) | Consumer rate (+5 points) |
|---|---|---|---|
| January 1, 2023 | 1.62% | 10.62% | 6.62% |
| July 1, 2023 | 3.12% | 12.12% | 8.12% |
| January 1, 2024 | 3.62% | 12.62% | 8.62% |
| July 1, 2024 | 3.37% | 12.37% | 8.37% |
| January 1, 2025 | 2.27% | 11.27% | 7.27% |
| July 1, 2025 | 1.27% | 10.27% | 6.27% |
| January 1, 2026 | 1.27% | 10.27% | 6.27% |
| July 1, 2026 | 1.52% | 10.52% | 6.52% |

The business and consumer columns are calculated from section 288 paragraphs 1 and 2 BGB. Paragraph 1 sets the general default rate at 5 points above the base rate, and paragraph 2 sets 9 points for claims where no consumer is involved.

Several guides still show 10.27% as the current rate. That was correct until June 30, 2026.

The distinction between consumers and businesses deserves careful attention, since the legislation applies different margins, different fees and different warning requirements depending on the identity of the debtor, and an invoice addressed to a sole trader who purchased the service for private reasons may be treated differently from one addressed to the same person acting in a professional capacity. Whether a particular client qualifies as a consumer depends on circumstances that this guide cannot assess.

## Does the rate apply to your client?

The 9-point rate applies when the client is not a consumer. Section 288 paragraph 2 BGB states that for "Rechtsgeschäfte, an denen ein Verbraucher nicht beteiligt ist" the rate on payment claims is nine percentage points above the base rate. A freelancer invoicing a company, a sole trader or another business therefore uses 10.52%.

A **payment claim** (Entgeltforderung) is a claim for money owed in return for goods or services, which covers an ordinary invoice. For a consumer client the general rate of 5 points applies, which gives 6.52% from July 1, 2026.

The flat €40 fee is also limited to business clients. [Section 288 BGB on default interest](https://www.gesetze-im-internet.de/bgb/__288.html) gives the creditor of a payment claim a claim to "eine Pauschale in Höhe von 40 Euro" if the debtor is not a consumer. The fee applies to instalment payments too, and it is credited against any damages owed for collection costs.

## When does your client fall into default?

A client falls into **Verzug** (default) through a reminder, once a fixed calendar due date has passed, or at the latest 30 days after the due date and receipt of the invoice, depending on which rule applies. Interest runs only while the client is in default. [Section 286 BGB on default](https://www.gesetze-im-internet.de/bgb/__286.html) sets out three routes.

1. **A reminder after the due date.** The debtor falls into default if it does not pay after a reminder (Mahnung) sent once the debt is due.
2. **A fixed calendar date.** No reminder is needed if payment is due on a date set by the calendar, such as "zahlbar bis 15.09.2026".
3. **Thirty days after the invoice.** A debtor on a payment claim is in default at the latest if it does not pay within 30 days of the due date and receipt of an invoice.

The statute adds that, against a consumer, the 30-day rule works only if the invoice expressly warns of this consequence. If the date the invoice arrived is uncertain, a business debtor is in default at the latest 30 days after the due date and receipt of the goods or service.

The practical lesson is plain. A due date written as a calendar date starts the clock without a reminder, and a dated invoice sent with proof of delivery backs up the 30-day rule.

![Decision chart showing default under section 286 BGB: calendar due date, reminder after due date, or 30 days after due date and invoice receipt](https://www.invoqk.com/charts/late-payment-interest-in-germany-10-52-from-july-2026-default.svg)

Documentation is the practical foundation of every successful claim for default interest, because the creditor carries the burden of demonstrating when the invoice was delivered, when payment became due and when the debtor received any reminder. Accordingly, an organised record of dates, together with copies of every written communication, usually matters more than the precise percentage applied to the debt.

## Worked example: a €3,200 invoice paid 47 days late

Take a freelance developer who invoices a company €3,200 with the due date "zahlbar bis 1. September 2026". The client pays 47 days after the due date. Both the period and the rate sit inside the half-year that began on July 1, 2026, so the rate is a flat 10.52%.

| Item | Calculation | Amount |
|---|---|---|
| Interest | €3,200 × 10.52% × 47 ÷ 365 | €43.35 |
| Flat fee | Section 288 paragraph 5 BGB | €40.00 |
| Total claim in addition to the invoice | | €83.35 |

At the earlier rate of 10.27%, the same interest would have been €42.32. The July 2026 change adds only €1.03 on this invoice, so the base rate matters less than a clear due date and a prompt reminder.

### What if the default straddles July 1?

The rate in force can change in the middle of a default. Assume a €3,200 debt that stays unpaid for 30 days before July 1, 2026 and 30 days after it.

| Period | Rate | Calculation | Interest |
|---|---|---|---|
| 30 days up to June 30, 2026 | 10.27% | €3,200 × 10.27% × 30 ÷ 365 | €27.01 |
| 30 days from July 1, 2026 | 10.52% | €3,200 × 10.52% × 30 ÷ 365 | €27.67 |
| Total interest | | | €54.68 |

Add the flat €40 and the claim is €94.68. Section 247 BGB changes the base rate on January 1 and July 1, and most calculators apply the rate valid in each half-year to the days that fall in it. The statute text read for this guide does not spell out the split, so check the method with an adviser on a larger claim.

![Bar chart of the €3,200 worked example: €43.35 interest plus the €40 flat fee for 47 days late at 10.52 percent](https://www.invoqk.com/charts/late-payment-interest-in-germany-10-52-from-july-2026-example.svg)

## How does the fixed fee compare with the interest?

The flat €40 is the larger sum for the first month or so on a modest invoice. On the €3,200 invoice, daily interest is €0.92, so interest reaches €40 only after about 43 days. On a €12,000 invoice, daily interest is €3.46, and interest passes €40 after about 12 days.

The relationship matters when you decide how to word a reminder, because the **flat fee** is a fixed charge that does not depend on the amount of the debt. It is charged once and depends on the client's status. The interest grows daily and scales with the invoice amount.

For readers who bill UK clients, the fixed sum works differently under UK rules, where it varies by debt size. Our guide on [how to calculate interest on a late invoice in the UK](/blog/how-to-calculate-interest-on-a-late-invoice-in-the-uk) covers that, and our guide to past due invoices covers what you can charge in general.

Independent professionals frequently underestimate how quickly small, regularly overdue payments accumulate into a significant annual cost, particularly when several clients habitually pay after the agreed date, and for that reason a consistent routine for reminders, interest calculations and written follow-up is more valuable than an occasional, reactive demand sent after months of silence.

## Can the invoice terms limit your interest?

Not by waiving it in advance. Section 288 paragraph 6 BGB states that an agreement made in advance that excludes the creditor's claim to default interest on a payment claim is void. A clause that restricts or excludes the €40 fee or collection-cost damages is void if it is grossly unfair to the creditor, and an exclusion is presumed to be grossly unfair. None of these limits apply when the claim is against a consumer.

Long payment terms are also regulated. [Section 271a BGB on payment periods](https://www.gesetze-im-internet.de/bgb/__271a.html) states that an agreement letting the creditor demand payment only more than 60 days after receipt of the goods or service is valid only if it is express and not grossly unfair to the creditor. The same section limits inspection or acceptance periods to 30 days unless the agreement is express and fair.

If such a clause is void, the rest of the contract stays valid. These rules are general, and whether a particular clause is grossly unfair depends on facts a guide cannot judge.

## What should a reminder say?

A good reminder names the invoice, the due date, the sum owed and a new deadline. It also states the interest and the fee separately, so the client can see how the total was reached. Keep it short and dated. The [past due invoice guide](/blog/past-due-invoice-what-it-is-and-what-you-can-charge) has full reminder wording.

A wording block you can adapt, in German with an English translation:

> Rechnung Nr. 2026-041 vom 18. August 2026 über 3.200,00 € war am 1. September 2026 fällig. Wir bitten um Zahlung bis zum 25. September 2026. Zusätzlich fallen Verzugszinsen in Höhe von 9 Prozentpunkten über dem Basiszinssatz sowie die Pauschale von 40 € nach § 288 Abs. 5 BGB an.

> Invoice no. 2026-041 dated August 18, 2026 for €3,200.00 was due on September 1, 2026. Please pay by September 25, 2026. Default interest at 9 percentage points above the base rate and the €40 flat fee under section 288 paragraph 5 BGB also apply.

Send the reminder in writing and keep proof of sending. A dated record shows when you asked for payment, which matters if the matter reaches a formal stage.

### Which steps should you follow?

1. Put a calendar due date on every invoice.
2. Keep proof that the invoice reached the client.
3. Send a first reminder the day after the due date.
4. Send a second reminder that states interest and the €40 fee.
5. Calculate interest to the day you send the second reminder.
6. Consider a formal route, with professional advice, if the client still does not pay.

Invoqk's invoice generator puts the invoice date, a due date and payment terms on every invoice and can email it, which gives you a dated send record. For German invoices that must also be e-invoices from 2027, see our guide on the e-invoice duty in Germany from 2027 and who must issue one.

## What mistakes cost the most?

Four mistakes recur in unpaid-invoice disputes.

- **Quoting an outdated rate.** The business rate changed on July 1, 2026, and many guides still print 10.27%.
- **Using the wrong rate for the client.** A consumer client gets the 5-point rate and no flat fee.
- **Leaving the due date vague.** "Payable on receipt" with no date forces a reminder or the 30-day rule.
- **Forgetting the credit.** The €40 fee is credited against any damages owed for collection costs, so do not bill the same cost twice.

A fifth is waiting for the interest to grow. The fee and the first weeks of interest are small, so the real value of the rules is the influence a clear, dated reminder gives you.

Prudent freelancers therefore treat the default rate as a variable that requires periodic verification rather than a constant that can be copied into a standard template, and they update their reminder wording whenever the Bundesbank publishes a revised figure, since an incorrect percentage in a formal demand undermines the credibility of the entire letter.

## What changes on January 1, 2027?

The Bundesbank will publish a new base rate for January 1, 2027. Section 247 BGB ties the change to the ECB's main refinancing rate before the start of the half-year, so the business default rate will move by the same number of points. The new figure is not known at the time of writing.

Check the Bundesbank page each January and July before you quote a rate in a reminder. The business rate is always the current base rate plus 9 points, and the arithmetic takes seconds. The UK equivalent is in [UK late payment law: what the 60-day cap bill changes](/blog/uk-late-payment-law-what-the-60-day-cap-bill-changes).

This guide was fact-checked against the German Civil Code text on gesetze-im-internet.de and the Bundesbank base rate pages read on October 22, 2026. If a rule has changed since, contact us through the Invoqk site and the editorial team will correct this page. It is general information and not legal advice on your own claim.

## FAQ

### What is the late payment interest rate between businesses in Germany in 2026?

It is 10.52% a year from July 1, 2026. That is the Bundesbank base rate of 1.52% plus 9 percentage points under section 288 paragraph 2 BGB. It applies to payment claims where no consumer is involved. The rate changes each January 1 and July 1.

### How do I calculate Verzugszinsen on an invoice?

Multiply the invoice amount by the annual rate and the days in default, then divide by 365. For €3,200 at 10.52% over 47 days, interest is €43.35. Add the flat €40 fee that section 288 paragraph 5 BGB gives against business debtors.

### When is my client in default without a reminder?

A client is in default without a reminder if payment is due on a fixed calendar date, according to section 286 BGB. Otherwise a business debtor is in default at the latest 30 days after the due date and receipt of the invoice.

### Can I claim the €40 fee from a consumer?

No. Section 288 paragraph 5 BGB gives the €40 flat fee only where the debtor is not a consumer. Against a consumer, the general default rate of 5 points above the base rate applies, which is 6.52% from July 1, 2026.

### Can my contract exclude default interest?

Not in advance. Section 288 paragraph 6 BGB says an advance agreement excluding the creditor's claim to default interest on a payment claim is void. Clauses limiting the €40 fee or collection costs are void if grossly unfair to the creditor.

## Related

- [Free invoice template guides: compliance & getting paid](https://www.invoqk.com/blog)
- [Invoqk home](https://www.invoqk.com)