International debt collection in the Netherlands is a common issue for foreign suppliers who
have supplied goods or services to Dutch customers, but are not getting paid. Non-payment by a
Dutch customer can have major financial consequences, especially when you are not familiar with the Dutch
legal system. In this article you will read how international debt collection in the Netherlands works, which legal
steps are possible and when litigation is worthwhile.
When does international debt collection in the Netherlands apply?
From international debt collection in the Netherlands occurs when a foreign company has a claim
against a debtor based in the Netherlands. This may, for example, involve a supplier from Germany, Turkey,
Poland or the United Kingdom that has supplied goods to a Dutch customer.
Common situations are:
- delivery of goods to a Dutch customer without payment;
- services performed for a Dutch company;
- persistent payment arrears;
- disputing invoices without a clear legal basis.
Can a foreign supplier litigate in the Netherlands?
Yes. For international debt collection in the Netherlands the Dutch courts have jurisdiction in many cases.
This depends, among other things, on:
- the debtor’s place of establishment;
- agreements in the contract about the competent court;
- the place where the obligation must be performed;
- applicable European regulations.
In practice, this means that foreign suppliers can often litigate directly in the Netherlands against
their Dutch debtor.
Which law applies to international debt collection?
For international debt collection in the Netherlands the applicable law is of great importance. Often in the
contract it is stated which law applies. If no choice of law is made, Dutch law may still
apply, for example because the debtor is based in the Netherlands.
International debt collection in the Netherlands: the step-by-step plan
Step 1: Legal assessment of the claim
A successful international debt collection in the Netherlands starts with a legal assessment of the
claim. This involves reviewing the contract, proof of delivery, invoices, and payment agreements.
Step 2: Written reminder
The Dutch debtor is given a written reminder and put in default. In many cases, this still leads to
payment, especially when it becomes clear that legal action will follow.
Step 3: Out-of-court collection
If payment is still not made, an out-of-court collection phase can be started. This is often an efficient way
to enforce payment without immediately going to court.
Step 4: Litigating before the Dutch court
If out-of-court collection yields no result, court proceedings can be initiated in the Netherlands. Depending on
the importance and the urgency, one can opt for proceedings on the merits or summary proceedings.
Step 5: Attachment and enforcement
After a favorable judgment, bank accounts or assets of the Dutch debtor can be attached. This makes
international debt collection in the Netherlands often still effective.
Statute of limitations in international debt collection
International claims can also become time-barred. In many cases, the limitation period is
five years. Timely action is therefore essential in international debt collection in the Netherlands.
General information about cross-border debt collection can be found via
Your Europe – Debt recovery.
Common mistakes in international debt collection
- waiting too long before taking action;
- insufficient proof of delivery;
- not taking jurisdiction rules into account;
- litigating without prospects of recovery;
- failing to determine a legal strategy.
What can Arslan Advocaten do for you?
Arslan Advocaten assists foreign suppliers with international debt collection in the Netherlands.
We assess the viability of your claim, advise on the right strategy, and conduct proceedings before the
Dutch courts if necessary.
Read more about our services in the field of
debt collection and payment disputes, and
business law.
Costs and litigation funding in business disputes
In business disputes, we generally work not on a no cure, no pay basis. Commercial proceedings
call for a careful and strategic approach, with clear agreements made in advance about costs
and litigation.
In certain cases however, it is possible to handle the case (in effect) on a no cure, no pay basis
to handle. We work with an independent litigation funder who – after assessing the case –
may be willing to finance (part of) the legal fees.
If litigation funding is granted, the legal fees are borne by the litigation funder. For the client
this means that going to court is possible without direct financial risk.
About the author
This article was written by Onur Arslan, lawyer and founder of Arslan Advocaten. He specializes
in commercial disputes, including international debt collection, trade disputes and proceedings against
Dutch companies.
Would you like to discuss whether your case is suitable for legal action or litigation funding?
