Maltese businesses now have an updated figure to work with when chasing overdue invoices: as of 1st July 2026, the statutory interest rate for late payment in commercial transactions has risen to 10.40%, up from 10.15% the previous year.

This rate is set under Directive 2011/7/EU, the EU's Late Payment Directive, which Malta transposed into national law through the Commercial Code in 2012. Its purpose has always been straightforward: give creditors, and particularly SMEs, who often bear the brunt of slow-paying clients, a real, enforceable tool to recoup the cost of delayed payments, rather than simply absorbing it.

In practical terms, the rate is calculated as the ECB reference rate (currently 2.40%) plus a fixed 8% margin, and it applies automatically once a payment falls overdue. No formal reminder to the debtor is required beforehand. On top of the interest itself, creditors can also claim a minimum of €40 to cover recovery costs.

For businesses that regularly deal with late-paying customers, knowing this figure is only half the battle - actually recovering what's owed is the harder part. That's where Phoenix Wise Solutions comes in. As members of MACM (Malta Association of Credit Management), we support businesses and entrepreneurs with credit control and debt recovery, helping turn overdue invoices into collected cash.

Joanna Storace

Executive Officer