How can a foreign company recover an unpaid debt from a Czech business?

Short answer

A foreign creditor has three main routes. For an undisputed cross-border claim, the European Payment Order (Regulation (EC) No 1896/2006) is usually fastest and is enforceable across the EU except Denmark without further recognition proceedings. For claims the debtor may contest, ordinary Czech court proceedings apply, typically starting with a Czech payment order giving the debtor 15 days to pay or object. Before either, a formal demand letter often resolves the matter. The key constraint is timing: the general limitation period under Czech law is three years from the date the claim could first have been asserted in court.

When this situation arises

• •A Czech business customer has not paid an invoice by its due date
• •A foreign creditor is deciding whether formal debt recovery is worth pursuing
• •A claim is approaching the three-year limitation period and needs urgent review

What options do you have

Recommended step-by-step process

1. 1.

   Gather your documentation

   Collect the contract, unpaid invoice, proof of delivery/performance, and any correspondence acknowledging the debt.

2. 2.

   Check the debtor's status

   Pull a current Commercial Register extract and check the Insolvency Register before proceeding.

3. 3.

   Send a formal demand letter

   A formal demand often resolves the matter before litigation is needed.

4. 4.

   Choose the right procedure

   File a European Payment Order for an uncontested cross-border claim, or pursue a Czech payment order/ordinary proceedings otherwise.

What documents to prepare

• •The contract or order confirmation
• •The unpaid invoice with a clear due date
• •Proof of delivery or performance
• •Any correspondence acknowledging the debt
• •Current Commercial Register extract on the debtor

Common mistakes

• •Waiting for "voluntary" payment until the limitation period is nearly expired
• •Starting proceedings without checking whether the debtor still exists or is already insolvent
• •Underestimating translation costs when proceedings run under a foreign jurisdiction's procedural law
• •Pursuing a small claim where litigation costs exceed the realistic recovery — checking debtor solvency first is usually the most valuable step

Risks and important deadlines

When it's worth contacting a lawyer

Representation is not formally required for the European Payment Order, but is strongly advisable once the debtor objects and the case becomes contested, or when a claim is approaching the three-year limitation mark and the exact start date is unclear.

Frequently asked questions