Unpaid invoices. Broken payment agreements. Business partners who disappear. If you’re a creditor — individual or corporate — and someone in Madrid owes you money, Spanish law gives you tools to enforce your rights. This guide explains how debt recovery and enforcement work in Madrid, especially for foreign creditors.
đź“Š 1. Can Foreigners Recover Debt in Madrid?
Yes. Foreign individuals and companies have the full right to:
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Demand payment through legal channels
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File lawsuits in Madrid courts
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Enforce both Spanish and foreign judgments
✅ Whether it’s a personal loan, unpaid invoice, or breach of contract — Madrid courts routinely handle cross-border debt disputes.
đź“ť 2. Pre-Litigation Debt Collection
Before going to court, your lawyer may:
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Send a burofax (certified legal demand letter)
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Attempt negotiation or mediation
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File for pre-judgment attachment (to freeze debtor’s assets)
📌 In many cases, this pressure is enough to trigger payment — without litigation.
⚖️ 3. Filing a Debt Recovery Lawsuit in Madrid
If the debtor refuses to pay, your lawyer can initiate:
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Monitory procedure (Proceso Monitorio) — for clear, uncontested debts
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Ordinary procedure — for disputed or complex claims
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Executive procedure — to enforce existing judgments or foreign rulings
đź’Ľ Common debt recovery clients include:
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Landlords
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Freelancers or contractors
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Businesses with unpaid invoices
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Individuals who lent money informally
🏛️ 4. Where Are Debt Claims Filed?
Madrid debt recovery claims typically go to:
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Juzgados de Primera Instancia (civil courts)
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Juzgados de lo Mercantil (if related to commercial contracts)
The jurisdiction is usually based on:
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Where the debtor resides
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Or where the service or transaction occurred
đź”’ 5. Asset Seizure & Judgment Enforcement in Madrid
If the court rules in your favor, the next step is enforcement:
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Wage garnishment (embargo de salario)
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Bank account freezing
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Property seizure (including real estate, vehicles)
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Notifying credit registries
📌 Your lawyer may also file for a European Payment Order (EPO) if you’re collecting from Madrid while residing in another EU country.
🌍 6. Enforcing Foreign Judgments in Madrid
If you already have a judgment from your home country, it can often be recognized and enforced in Spain, depending on:
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The country (EU or non-EU)
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Type of case
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Proper notification and due process
Madrid courts regularly enforce judgments from:
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UK (post-Brexit rules apply)
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EU member states
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US, Canada, Latin America (with treaties)
👨‍⚖️ 7. Why Use a Debt Recovery Lawyer in Madrid?
A lawyer ensures:
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Fast, strategic case filing
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You don’t miss deadlines or procedural errors
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You maximize asset recovery
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Your case is managed even if you’re abroad
đź’ˇ Lawyers can act under power of attorney, saving you travel time.
đź“© Conclusion & CTA
Debt recovery in Madrid is absolutely possible — but it must be done correctly. Whether you’re recovering €5,000 or €500,000, the right legal team can help you recover funds efficiently.
👉 Need help collecting a debt in Madrid?
Contact Borderless Lawyers — we connect you with debt recovery experts who handle cases for international clients across Spain.