Unpaid invoice from a Spanish sole trader (autónomo): what to do

Foreign suppliers often deal with Spanish customers without noticing what kind of business they are. The invoice goes to "Reformas García" or "Juan Pérez Fotografía", payment terms are agreed by email, and the legal form only matters once the money stops arriving. With an autónomo (a self-employed sole trader), it matters a lot: the person is the business.

Spain has a lot of them. In our report on Spanish SMEs and sole traders by province, half of the 492,043 small businesses we analysed are autónomos.

Check who you actually invoiced

The tax ID tells you. A Spanish company's NIF starts with a letter that shows its form: B for a limited company (SL), A for a public company (SA). An autónomo invoices with a personal DNI (eight digits and a letter) or, if they are a foreign resident, an NIE beginning with X, Y or Z. Our guide to validating a Spanish NIF shows how to read it.

Why it matters: personal liability

When an SL doesn't pay, the debtor is the company. Shareholders generally aren't liable beyond their contribution, and an empty SL can leave you with a court order nobody can satisfy.

A sole trader has no such shield. Article 1911 of the Spanish Civil Code says a debtor answers for their obligations with all their assets, present and future. Bank accounts, vehicles, a share in a property and payments due from other customers can all be reached.

	Company (SL, SA)	Autónomo
Who owes you	The company	The individual
Assets at risk	The company's	All of theirs, now and in future
Public register	Mercantile Register (BORME)	Usually not registered
Data protection	Company data	Personal data under GDPR
Insolvency route	Company insolvency	Personal insolvency and debt discharge

With a company there is one extra route. If the SL was legally required to dissolve, for example because losses left its equity below half its share capital, and the directors did nothing, article 367 of the Capital Companies Act makes them jointly liable for debts incurred afterwards. It is technical, so take local advice.

What a Spanish court won't seize

Personal liability has limits set by the Civil Procedure Act:

• Income up to the minimum wage. Article 607 protects earnings up to Spain's minimum wage (SMI), with a sliding scale above it, and the same article extends this to self-employed business and professional income. The SMI changes every year, so check the current figure.
• Tools of the trade. Article 606 protects the instruments a person needs for their trade when their value is out of proportion to the debt.
• The main home of a registered limited liability entrepreneur. Under Law 14/2013, a sole trader who registers under this status can ring-fence their main home from business debts, within value limits. Few do, but it shows up in the registers.

If the debtor is married under Spain's default community property regime, article 1365 of the Civil Code makes jointly owned assets answer for debts from either spouse's trade or profession. There are nuances, including separate rules for married merchants and regional regimes such as Catalonia's, so check the facts with a Spanish lawyer first.

Finding them is harder

A company can be traced through the BORME with its registered office and directors. A sole trader is usually not in the Mercantile Register, their tax address may be their home, and they change numbers, close premises or take a salaried job. The monitorio is filed in the court of the debtor's domicile, and a stale address can delay service for months.

Our guide to locating a Spanish debtor covers the practical steps.

The steps are the same as for a company

1. Reminder and a phone call. Many autónomos pay late because of a bad month or poor admin, not bad faith. An instalment plan often recovers more than a lawsuit.
2. A formal demand. A burofax with certified content stating the amount, due date, interest and a deadline. It also interrupts the limitation period, which for some trades' and professionals' services is three years rather than five.
3. Pre-action negotiation. Since April 2025, Organic Law 1/2025 requires a documented attempt to settle before most civil claims. A burofax can serve both purposes if it is drafted for it.
4. Monitorio. No amount limit and no lawyer needed for the initial application. See our monitorio step-by-step guide.

Spain's late payment law (Law 3/2004) covers a sole trader buying for their business, so late payment interest and the €40 recovery fee apply. Within the EU, the European Payment Order is an alternative for cross-border claims.

Mind the GDPR

A sole trader's phone number and email are personal data. Using them to chase a debt arising from your contract is lawful, but keep it proportionate: no calls to relatives, no posts on social media, no threats to publicise the debt. Spain's data protection authority, the AEPD, does fine heavy-handed collection. If you also want to sell to Spanish businesses, different rules apply; see cold calling companies in Spain and cold email and the LSSI.

If they file for a fresh start

An insolvent autónomo can apply for personal insolvency and a discharge of remaining debts under the Spanish Insolvency Act, reformed in 2022. If granted, much of their ordinary debt may be cancelled. If you are notified, file your claim on time; our guide to a Spanish customer in insolvency explains the basics, and EU creditors may file in their own language under the Insolvency Regulation.

Next time

With small Spanish customers, a deposit on large orders and milestone billing do more than any collection letter. A credit check before agreeing payment terms takes minutes.

Our debt collection use case explains how to get a current phone number and email for a Spanish debtor, whether it's a company or a sole trader.

This article is for information only and is not legal advice. Seizure limits, the minimum wage and insolvency rules change. Check the current text on the BOE and consult a Spanish lawyer for your case.