Debt collection in Portugal

Portuguese and European law provide several routes for collecting a commercial debt, and the best choice depends primarily on the size of the claim. 

Injunção (injunction procedure). For undisputed claims up to €15,000, this is the standard tool. The creditor files online through the BNI, and the debtor has 15 to 20 days to pay or oppose. If there is no opposition, the injunction is stamped with an enforcement formula and becomes a writ of execution immediately, without any judge's ruling. This makes it one of the fastest debt-recovery mechanisms in the EU for small commercial claims.

AECOP (special action for contractual monetary debts). Also capped at €15,000, the AECOP is a simplified court action governed by Decree-Law 269/98 of 1 September. For claims under €5,000 the parties do not even need a lawyer. If the debtor opposes an Injunção, the case is automatically transferred and continues as an AECOP.

Ordinary court action. Required for claims above €15,000. A lawyer (advogado) is mandatory. The case goes before the civil central court or, if the claim arises from a commercial activity, the commercial court section. Average duration: 12 to 18 months for a first-degree judgment.

European Payment Order. Available for cross-border EU claims of any amount. Based on Regulation (EC) 1896/2006, it is entirely electronic and produces an enforceable title if the debtor does not oppose within 30 days.

European Account Preservation Order (EAPO). The EAPO allows a creditor to freeze the debtor's bank accounts across the EU before or during litigation. It is governed by Regulation (EU) 655/2014 and is particularly useful when there is a risk of asset dissipation.

The timeline varies significantly depending on the procedure chosen and whether the debtor contests the claim.

For an uncontested Injunção, the process typically concludes in four to eight weeks from filing to enforcement formula. If the debtor opposes and the case moves to an AECOP, expect an additional two to four months for the court hearing, which must be held within 30 days of opposition.

For ordinary proceedings, the average time to a first-degree judgment is 12 to 18 months. Appeals can add another 12 to 18 months, though judgments are generally enforceable pending appeal if the losing party does not provide a guarantee.

Yes. A foreign company can bring a claim before Portuguese courts, but it must appoint a local advogado (lawyer) to represent it in all proceedings except the smallest claims under €5,000 in an AECOP action.

The power of attorney required is a procuração forense. Crucially, this document does not need notarisation or an apostille for purely domestic proceedings, which simplifies and speeds up the engagement of local counsel for foreign creditors.

If you already have an enforceable judgment from another EU Member State, it circulates freely within the EU legal area and can be enforced directly in Portugal without any recognition procedure, by virtue of Regulation (EU) 1215/2012 (Brussels Ibis).

Portuguese rules on cost recovery are more restrictive than in some other EU countries. Court filing fees (taxa de justia) are paid upfront by the claimant and can be recovered from the losing party if the claim succeeds. 

However, lawyers' fees (honoriários de advogado) are not recoverable. Under Article 26 of the Regulamento das Custas Processuais (RCP), the losing party may be ordered to pay a lump sum of up to twice the court fees to cover the winning party's overall expenses, but this rarely covers actual legal costs in full.

Out-of-court collection costs, such as the pre-litigation formal notice letter, are entirely borne by the creditor unless the contract expressly provides otherwise.

On commercial debts, Decree-Law 62/2013 (transposing EU Directive 2011/7/EU on late payment) automatically triggers a late-payment interest rate of 9.60% per year from the second half of 2024 once 30 days pass from the invoice date or delivery. Civil debts carry a lower statutory rate, set at 5.997% per year in 2024.

If enforcement proceedings (ação executiva) are initiated but the enforcement agent (solicitador de execução) cannot locate attachable assets, the execution file is suspended. The judgment remains on record and can be reactivated if assets are identified later.

Before going to court, it is therefore advisable to conduct due diligence on the debtor's financial position. Portuguese companies are subject to mandatory filing at the Registo Comercial, and their accounts are publicly searchable, which allows a preliminary solvency check before initiating proceedings.

In insolvency scenarios, the creditor must file a claim in the insolvency proceedings before the commercial court. Portuguese insolvency is governed by the CIRE (Código da Insolvencia e da Recuperação de Empresas), which provides for both liquidation and restructuring.

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Q: Is there a minimum claim amount required to start debt collection proceedings in Portugal?

A: No. Portuguese law sets no minimum threshold for filing a debt-recovery action. However, for very small amounts, out-of-court negotiation may be more cost-effective since pre-litigation costs are borne entirely by the creditor.

Q: Does the formal notice letter from a lawyer stop the limitation period from running?

A: No. In Portugal, the limitation period is interrupted only by filing a court action or by an express acknowledgment of the debt by the debtor, not by a lawyer's letter. A letter is useful to trigger a response or payment, but it does not reset the clock.

Q: What limitation period applies to a B2B invoice for goods sold to a Portuguese trading company?

A: If the sale is to a merchant for commercial use, the general 20-year period applies. If the sale is to a non-trader or for non-commercial use, the shorter 2-year period applies. When in doubt, it is safest to act quickly and not rely on the longer period.

Q: Can the Injunção be used if the debtor is based in another EU country?

A: No. The Injunção is a purely domestic Portuguese procedure. For cross-border EU claims, the European Payment Order (Regulation 1896/2006) is the appropriate instrument, and it is available regardless of claim amount.

Q: Is enforcement of a foreign arbitral award straightforward in Portugal?

A: Portugal is a signatory to the New York Convention (1958), so foreign arbitral awards are generally enforceable. The award must first be recognised (exequatur) by the Lisbon Court of Appeal before enforcement can proceed. This process typically takes three to six months.