How Spanish clients actually pay: terms, approvals and August

Terms used

• Pagarés — Pagarés are promissory notes: written promises to pay on a later date, which can delay your money and carry collection risk.
• Confirming — Confirming is a service where the client's bank pays or advances supplier invoices, often at a discount and with a longer effective term.
• NIF — The NIF is the Spanish tax identification number that must appear on your invoices.
• IVA — The IVA is Spain's value-added tax, added to most invoices.
• IRPF — The IRPF is Spanish income tax, which some invoices must withhold at a set percentage.

Key rules

• Real payment times: Expect many Spanish business clients to pay later than the legal maximum, so plan cash flow with a buffer.
• Payment method: Ask for bank transfer and avoid long pagarés.
• Approvals: Your invoice waits for internal approval and a scheduled payment run before money moves.
• August: Invoices issued in July or August may not be paid until September, so invoice early in July.

Expect to be paid later than the law says

Plan your cash flow around slower payment than the legal term. In practice, Spanish business clients often pay later than the legal maximum, and many take well beyond 60 days. Large companies tend to pay faster than small ones. Public bodies are held to a shorter legal period.

The legal terms and what happens when a client pays late are in the timeline and the late-payment rules for this topic. Here, the focus is how payment works in real life.

Most clients pay by bank transfer

Bank transfer is the normal way you will be paid, usually once the invoice is approved. Some clients pay a monthly retainer by direct debit (domiciliación). Ask for transfer whenever you can.

Larger or traditional firms sometimes offer other methods, such as pagarés or confirming. These can stretch the real wait and, with pagarés, add the risk of not collecting. The warnings below cover them. Avoid long pagarés.

Your invoice goes through approvals first

Your invoice does not go straight to payment. It usually lands in accounts payable, is matched to a purchase order or approved by whoever owns the budget, and is then scheduled for a payment run. Many companies pay on set days, such as the 5th, 10th, 15th or 25th, or once or twice a month. Miss a run and you wait for the next one.

To avoid delays:

• Make sure the invoice shows your name and NIF, the client's name and tax ID, address, a sequential number, the date, a description, the taxable base, IVA and IRPF withholding where they apply.
• Ask before you start whether the client needs a purchase order number or an upload to a supplier portal.
• Public bodies accept only electronic invoices through their official system.
• Send the invoice as soon as the work is delivered, because the clock and the approval queue both start then.

August slows everything down

August is the main holiday month. Many companies run on reduced staff, and some close for part of it. Approvals and payment runs often slip to September, so an invoice issued in July or August may be paid late. New projects are rarely decided in August. Tourism is the exception, and it is busiest then.

Invoice early in July, and keep enough savings to cover your costs until September.

Build it into your plan

• Assume your real wait is longer than the term on your invoice.
• Do not rely on one big client paying on time.
• Ask new clients about their approval steps and payment days before you agree a price.
• Keep a cash buffer that covers a couple of months of expenses.

Timeline and deadlines

From invoice to money in your account

• Legal payment term starts when you deliver the work: 30 days from delivery of the work

• Longest term you can agree in writing with a client: Up to 60 days, never more

• Typical real payment time for Spanish business clients: Often 50 to 60 days after the invoice, and many clients go beyond 60 days; large companies tend to pay faster than small ones

• Late payment interest begins: From the day after the due date

Typical payment periods vary by sector and client size; check what your own clients usually do before planning cash flow.

What to watch out for

Payment risks to plan for

• Agreed terms that are too long or abusive: A client may propose a term longer than 60 days or one that is grossly unfair to you. Terms above 60 days are not allowed, and an abusive term can be challenged. Agree a term of 60 days at most in writing before you start, and aim for 30 days where you can.

• Pagarés (promissory notes): A pagaré is a written promise to pay on a future date. It can push your real payment date far past the invoice and carries a risk the note is not honoured. Ask for bank transfer instead and avoid pagarés with long dates.

• Confirming: With confirming, the client's bank pays or advances your invoice, often at a discount. It can mean a longer effective term or less money than the invoice total. Ask the client for the exact payment date and any discount before you accept confirming.

• Cash flow gaps from slow approvals: Clients usually pay by transfer only after your invoice is approved internally, and payment often runs past 60 days. You can be left waiting while your own bills fall due. Plan your cash flow on 60 days or more per invoice, send invoices as soon as work is delivered, and use direct debit for recurring retainers where the client agrees.

Client payment quick answers

Do I need a written contract to work for a client in Spain?

No, a written contract is not legally required for a freelance service agreement in Spain, and an oral agreement is valid. The main exception is a TRADE contract, for freelancers who depend on one client, which must be in writing. Even when it is not required, a written contract makes your terms much easier to prove, though emails and invoices can also serve as evidence.

Is it normal to ask a Spanish client for an advance?

Yes, asking for an advance (anticipo) is common and accepted, especially with new clients and larger projects. Advances of 30% to 50% are common for projects, and smaller ones start around 20%. Large clients may push back and pay on delivery or on a 30-day invoice instead.

Do I have to send a reminder before charging late payment interest?

No, default interest on a late business invoice is owed automatically once the payment deadline passes, with no reminder needed. This applies when you delivered your work and the delay is the client's responsibility. You cannot be held to a clause that waives this right if its terms are grossly unfair to you.

Can I stop work when a client's invoice is overdue?

Yes, you can suspend work if the client's non-payment is serious enough to defeat the purpose of the contract, but not for a minor delay. Check your contract for notice and suspension clauses, and send written notice before you stop. Suspending wrongly can expose you to a damages claim or termination for breach, and public clients have special formal-notice rules.

Does the time limit to claim an unpaid invoice differ in Catalonia?

Yes, Catalonia and other regions with their own civil codes have their own limitation periods, so the general Spanish period may not apply to you. The general period for the rest of Spain is 5 years from the due date. If you live in one of those regions, ask a local lawyer or adviser which period applies.