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Late Payment Interest in Ireland (2026)

10.40% per yearEuropean Central Bank main refinancing rate (2.40% as of 1 July 2026) plus 8 percentage points, fixed for each six-month period. On a €5,000 invoice 60 days overdue, the money already owed to you looks like this:

Total owed on a €5,000 invoice · 60 days late

€5,155.48

Growing €1.42 every day it stays unpaid

principal
€5,000
interest
€85.48
fixed fee
€70

Rate verified 2026-07-06 · Source: Dept. of Enterprise, Trade and Employment · Methodology

Calculate your invoice

Rate prefilled from the Ireland default (10.40% per year) — override it if your contract sets its own.

60 days overdue

%

Ireland default: 10.40% per year

Total now owed to you · Ireland

€5,155.48

€5,000 principal · 60 days overdue at 10.4%

interest accrued
€85.48
growing daily by
€1.42
fixed compensation
€70

Simple interest: amount × (10.4% ÷ 365) × 60 days + fixed compensation fee. Information, not legal advice — contract terms can override statutory defaults.

The rule in plain English

Irish law implements the EU Late Payment Directive: business customers who pay late owe you interest at the ECB main refinancing rate plus 8 percentage points, automatically — you do not need a contract clause.

The ECB rate in force on 1 January applies for the first half of the year, and the rate on 1 July applies for the second half.

You are also entitled to fixed compensation per late invoice (€40, €70, or €100 by debt size) for recovery costs.

Interest runs from the day after the agreed due date, or 30 days after receipt of the invoice (or of the goods/services) where no date was agreed. Public bodies must generally pay within 30 days.

Debt sizeFixed compensation
debt up to €1,000€40
debt €1,000 to €10,000€70
debt over €10,000€100

Legal basis: European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580/2012).

Worked example

invoice = €5,000, 60 days overdue, rate = 10.40%

daily interest = €5,000 × (10.40% ÷ 365) = €1.42

interest = €1.42 × 60 days = €85.48

fixed compensation = €70

total owed = €5,155.48

What to include in your demand letter

A short, factual letter recovers more invoices than a heated one. Checklist (general guidance, not legal advice):

  • Invoice number, date, original due date, and the exact principal outstanding.
  • The interest calculation shown line by line — principal, rate (10.40% per year), days overdue, daily amount — so there is nothing to dispute.
  • The fixed compensation you are claiming under European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580/2012), with the band it falls into.
  • A single clear deadline (7 or 14 days is customary) and the payment details — remove every excuse for delay.
  • What happens next if unpaid: a letter before action, small claims / court filing, or referral to collections — stated plainly, without threats you don’t intend to keep.
  • A note that interest continues to accrue daily until payment — quote the per-day figure from the calculator above.

FAQ

What interest can I charge on a late invoice in Ireland?
European Central Bank main refinancing rate (2.40% as of 1 July 2026) plus 8 percentage points, fixed for each six-month period. On a €5,000 invoice 60 days overdue, that is about €85.48 in interest plus a fixed €70 compensation fee. (European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580/2012); verified 2026-07-06.)
Do I need a clause in my contract to charge this?
No — the statutory right applies automatically to business-to-business transactions. If your contract sets its own late-payment remedy, that applies instead, provided it is a substantial remedy rather than a token one.
How is late payment interest calculated?
Simple interest on a daily basis: invoice amount × (annual rate ÷ 365) × days overdue, plus the fixed compensation fee per invoice. Interest normally runs from the day after the due date, or 30 days after invoice/delivery if no due date was agreed. The calculator above shows the formula with your own numbers.
Does the Ireland rate change?
Resets each 1 January and 1 July from the ECB main refinancing rate. DETE has confirmed 10.4% per annum with effect from 1 July 2026 (ECB rate 2.40% + 8pp).
Can I really send an invoice for the interest?
Yes — the standard practice is a short statement or updated invoice showing the principal, the daily interest accrued to date, the fixed compensation fee, and the legal basis (European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. No. 580/2012)). Many creditors find the demand itself prompts payment. This site provides information, not legal advice; for significant sums, confirm your position with a professional before escalating.

This page is general information about Ireland, verified 2026-07-06 against Dept. of Enterprise, Trade and Employment. It is not legal advice, and statutory rules have exceptions and transition rules that a short summary cannot capture. Contract terms often override statutory defaults. For significant or disputed sums, consult a qualified professional in your jurisdiction.

Other jurisdictions

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