Checklist for Debt Collection in the Czech Republic

3 years (standard limitation period), starts to run from the day the claim is due

By filing a lawsuit (= court action). Sending a (registered) letter does not interrupt the limitation period

Not mandatory. However, it is necessary for compensation of legal fees at the court.

District court ("okresní soud") at the permanent residence / seat of the debtor.

No need of a formal proxy for out-of-court action. Necessary for starting a legal action, court usually  requires original of power of attorney or PDF signed with eIDAS signature

Contracts, invoices, statements of account, reminders, any acknowledgement of debt, useful correspondence. Power of attorney and registration to VAT of the legal representative should be disclosed in case of representation.

Between 6 and 12 months, if there are no counterclaims (warranty, guarantee, law of damages), otherwise longer

Payment order ("platební rozkaz") or electronic payment order ("elektronický platební rozkaz") can be requested. If no objection is lodged against the payment order, no standard court proceedings are initiated. An electronic payment order is normally issued within approximately 3 months.

The costs of out-of-court debt collection are set at CZK 1,200 (approximately EUR 45). Debt collection costs are awarded as a sum of court fees paid and compensation of costs of legal representation in the amount depending on the value of the dispute and the number of court proceedings, as determined by a decree of the Ministry of Justice.

The amount of interest on late payments corresponds to the annual repo rate set by the Czech National Bank for the first day of the calendar half-year in which the delay occurred, increased by 8 percentage points.