Late payment interest in Ireland
An invoice paid late in Ireland carries statutory interest at 10.4 % a year — the reference rate plus 8 points. A fixed sum of €40 towards recovery costs is owed on top, per late invoice.
A worked example
€10,000 paid 45 days late accrues €128.22 in interest, plus the €40 fixed sum.
Maximum payment terms
Between businesses : 60 days · Public authorities : 30 days
Ireland applies the directive at the eight-point margin, and is unusual in publishing the resulting figure rather than leaving each creditor to assemble it. The Department of Enterprise, Tourism and Employment states the rate for each half-year outright, together with the daily divisor of 365, so the arithmetic on a specific invoice is a multiplication rather than a research exercise.
A published rate, and why that matters more than it sounds
Elsewhere a creditor has to find the reference rate in force on the right date, add the national margin and hope both were read correctly. Ireland removes both steps: the rate for the period is stated as a single number, revised each 1 January and 1 July. Disputes about the rate itself therefore barely happen — the argument, when there is one, is about the dates.
The daily divisor is stated too, and it is 365 rather than 360. That distinction is not cosmetic: on a large debt held for a long period, the difference between the two conventions is real money, and the published divisor removes the choice.
Thirty days by default, and the compensation on top
Where no payment period was agreed, payment is due within thirty days. Where one was agreed, sixty days is the outer limit between businesses unless a longer term is expressly agreed and is not grossly unfair to the creditor. Public bodies operate to thirty days and, under the prompt payment rules, publish their performance against it.
Compensation for recovery costs follows the directive's scale by debt size — EUR 40, EUR 70 or EUR 100 — and is owed in addition to the interest, without proof. Reasonable costs beyond that remain recoverable on evidence, which is the part most often forgotten once the principal has been paid.
Worth knowing
Ireland is the country that publishes the resulting figure rather than leaving it to be assembled: the department states the rate for each half-year outright — 10.4% a year from 1 July 2026, being the ECB rate of 2.40% plus the eight-point margin — and gives the daily divisor as 365.
FAQ
- What is the current rate, and where does it come from?
- The department publishes it each half-year: 10.4% a year with effect from 1 July 2026, being the ECB main refinancing rate of 2.40% as at that date plus the statutory eight-point margin, with a daily rate of 10.4% divided by 365. The figure changes on 1 January and 1 July, so check the period a given invoice falls in.
- Does the interest run without a demand?
- Yes. Entitlement arises automatically once the payment period has expired, without any reminder or formal demand. A demand matters for the relationship and for preparing enforcement; it does not create the entitlement, which exists from the day after the due date.
Important
A general overview, not legal advice. The reference rate is reset twice a year and the figure above was read on 2026-07-01 — check the period your invoice actually falls in before quoting a number to a debtor.