🏙️ Doing Business or Renting in Madrid? Recovering Unpaid Debts Is Possible — Even from Abroad
Whether you’re a landlord, freelancer, supplier, or foreign investor, unpaid debts in Madrid can be resolved legally — and often without going to court.
In this guide, we explain how non-residents and expats can recover money owed to them using Spain’s legal tools — from formal demands to court enforcement.
🧾 Common Types of Debt Cases in Madrid
Foreign individuals and companies often pursue:
✅ Unpaid rent (residential or commercial)
✅ Unpaid invoices or services
✅ Loans not repaid
✅ Non-return of deposits
✅ Shared property expenses
✅ Construction contract disputes
If the debtor is located in Madrid, your case must be handled under Spanish jurisdiction.
⚖️ Legal Options to Recover Debt in Madrid
1. 📩 Formal Demand via Burofax
A Burofax is a certified legal notice demanding payment:
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Delivered by the Spanish postal service
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Used as evidence in court
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Often results in voluntary payment
💡 Can be sent by your lawyer from Madrid, even if you live abroad.
2. 🧾 Monitorio Procedure (Fast Court Process)
For uncontested debts, Spain offers a quick court route:
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No hearing required
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Only need a contract, invoice, or proof of debt
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Filed in Madrid’s Civil Courts (Juzgados de Primera Instancia)
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Court orders debtor to pay within 20 working days
➡️ If no objection is filed, judgment becomes enforceable.
3. 👨⚖️ Full Civil Lawsuit (Juicio Ordinario)
If the debt is contested or exceeds €6,000, you can file a full lawsuit:
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Handled in Madrid courts
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Requires full case file and representation
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Ends with enforceable judgment and potential cost recovery
✅ Your Spanish lawyer and court rep (procurador) can handle everything for you.
🔁 Can You Recover Debt Without Living in Spain?
✅ Yes. Foreign individuals and companies can recover debts remotely with legal representation.
Your lawyer in Madrid can act for you via Power of Attorney, and:
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Draft demand letters
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File court actions
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Negotiate settlements
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Enforce judgments (e.g. freeze bank accounts, seize property)
📑 Documents Needed to Claim Debt
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ID/passport + NIE (if available)
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Contract, invoice, or loan agreement
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Proof of delivery or service (email, receipt, etc.)
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Bank records or messages confirming non-payment
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Address or contact details of the debtor (Madrid-based)
⏳ How Long Does Debt Recovery Take?
| Method | Timeline |
|---|---|
| Burofax demand | 7–14 days |
| Monitorio process | 1–3 months |
| Full lawsuit | 6–12+ months |
| Judgment enforcement | 1–3 months (post-ruling) |
✅ Urgent cases (e.g. large unpaid rent) can be fast-tracked in some Madrid courts.
💶 Legal Costs in Debt Recovery
| Expense | Typical Range |
|---|---|
| Lawyer fees (basic case) | €800–€2,500 |
| Procurador (if required) | €300–€600 |
| Court filing fees | Often waived |
| Enforcement costs | Varies |
✅ In many successful cases, costs can be charged to the debtor.
🛡️ How Our Madrid Lawyers Help You Recover Debt
We assist foreign clients with:
✅ Legal demand letters in Spanish
✅ Full court filing & representation
✅ Pre-litigation negotiation
✅ Monitorio or standard lawsuits
✅ Enforcing judgments (bank seizures, property liens)
All without you needing to be in Spain.
📞 Owed Money in Madrid? Act Now.
We help expats, landlords, and foreign businesses recover debts in Madrid with fast, legal action — even if you’re not in Spain.
👉 Contact our debt recovery lawyers in Madrid today for a consultation.