Debt collection in Hungary: what foreign creditors need to know
Foreign businesses often supply goods or provide services to Hungarian customers. When an invoice remains unpaid, recovery follows a procedure that is unfamiliar to them. Below I summarise the main steps of debt collection in Hungary – the letter of demand, the order for payment procedure, court action and enforcement – with particular attention to a requirement that especially affects foreign creditors.
Before any proceedings: interest, the recovery fee and limitation
In contracts between businesses, the rate of default interest is the central bank base rate valid on the first day of the calendar half-year concerned, plus eight percentage points. For a debt denominated in a foreign currency, the base rate set by the issuing central bank for that currency applies or, failing that, the money market rate [section 6:155(1) of the Hungarian Civil Code].
Where payment under a commercial transaction is late, the creditor is also entitled to a flat-rate recovery fee equal to the forint amount of EUR 40, which may be claimed within a one-year forfeiture period from the date of default [section 3(1)–(2) of Act IX of 2016 on the flat-rate recovery fee]. The debtor is not obliged to pay it if the delay is excused [section 3(3)].
Unless the law provides otherwise, claims lapse after five years, and the limitation period starts when the claim becomes due [section 6:22(1)–(2) of the Civil Code]. As a rule, a time-barred claim cannot be enforced in court proceedings [section 6:23(1)].
Before starting proceedings, it is advisable to send the debtor a written demand setting a deadline for payment. The letter records the amount and the legal basis of the claim, and many matters are settled at this stage.
The order for payment: the notarial route
In Hungary, an overdue claim for the payment of money may be enforced by way of an order for payment [section 3(1) of Act L of 2009 on the order for payment procedure (the “Order for Payment Act”)]. The procedure is conducted before a notary. An overdue claim exclusively for the payment of money not exceeding HUF 3 million may, as a rule, be enforced only by way of an order for payment, provided that the parties have a known address for service in Hungary and the claim does not fall within the statutory exceptions; above HUF 30 million, no order for payment may be issued [section 3(2)–(3)].
The notary issues the order without hearing the debtor [section 26(1)]. The debtor may file a statement of opposition within fifteen days of service [section 28(1)]. If no opposition is filed, the order becomes final and enforceable [section 27(1)(d)]; if it is, the procedure is converted into a court action to the extent of the opposition [section 37(1)].
The notarial procedural fee is 3% of the claim, at least HUF 12,000 and at most HUF 300,000 [section 45(1)(a)]. You can estimate the expected costs with the fee calculator.
Foreign creditors: the address-for-service requirement
The order for payment procedure has one requirement that particularly affects foreign creditors. No order for payment may be issued if the parties have no known address for service in Hungary [section 3(4) of the Order for Payment Act], and an application by a creditor without such an address must be rejected without a request to remedy the deficiency [section 15(1)]. The creditor must ensure that it has an address for service in Hungary throughout the procedure [section 15(2)].
An address for service may be a registered office or a representation; the Act treats the commercial representation of a foreign business, and the Hungarian financial branch of a foreign business seated in an EEA state, as a representation [section 3(2)(a) and (6)]. Which procedure is available to a particular foreign creditor must be examined before the application is filed.
In cross-border cases within the European Union, the European order for payment procedure is also available; in Hungary, notaries also have competence to issue a European order for payment [section 59(1)]. The rule making the order for payment mandatory does not exclude the use of the European small claims procedure either [section 3(7)].
If the dispute goes to court
If the debtor files an opposition, the dispute is decided by a court. In the action, the contract, the purchase orders, the invoices, the documents proving performance and the correspondence between the parties are decisive, so it is worth collecting them before the letter of demand is sent. You can read more about court proceedings on the Representation in litigation page.
Enforcement
On the basis of a final order for payment, enforcement is ordered by the notary who issued the order [section 52(2) of the Order for Payment Act]. In matters within the competence of an independent court bailiff, the enforcement certificate is issued as an electronic public document and sent to the bailiff electronically [section 53(1)]. Unless the law provides otherwise, the costs of enforcement are advanced by the creditor and borne by the debtor [section 34(1) of Act LIII of 1994 on judicial enforcement].
How I can help
I advise and represent foreign creditors against Hungarian debtors, in English. I examine the legal basis of the claim and whether it is time-barred, draft the letter of demand, file the application for an order for payment, represent you in court if an opposition is filed, and apply for enforcement. You can read more on the Debt recovery and enforcement of claims page, and estimate the expected costs with the fee calculator.
This article provides general information and does not constitute legal advice. Legal position as at October 2026. This English version is provided for information; in the event of any discrepancy, the Hungarian version prevails.