Debt Collection Agency Austria: Mahnverfahren + 30-Year Judgments
Debt Collection Agency Austria: Germany's Neighbour, Germany's System — With Austrian Extras
The Family Resemblance
Austria's commercial debt collection system is structurally similar to Germany's. Same legal tradition (ABGB vs BGB). Same Mahnverfahren (judicial payment order) mechanism. Same cultural seriousness about payment obligations. If you understand German debt collection, you're 80% of the way to understanding Austria.
But the 20% that's different matters — and it's where foreign creditors make mistakes.
The Austrian Mahnverfahren
Austria's judicial payment order (Mahnklage) mirrors Germany's Mahnverfahren but with Austrian procedural specifics. For claims up to €75,000, the creditor files with the Bezirksgericht (district court). The court issues a Zahlungsbefehl (payment order) without examining the merits. The debtor has 4 weeks to file Einspruch (opposition).
If no opposition: enforceable title in 4-8 weeks. Court fees: proportional to claim value, starting at approximately €36 for small claims and scaling to €750+ for claims at the €75,000 threshold.
For claims above €75,000, the Landesgericht (regional court) handles proceedings through the standard Mahnverfahren or full litigation (Klagsverfahren).
The Austrian extra: Austrian judgments have a 30-year enforcement period. Not 6 years (UK), not 10 years (Italy), not even 20 years. Thirty years. An enforceable Austrian title obtained in 2025 remains valid until 2055. This makes Austria one of the most durable enforcement jurisdictions in Europe — and gives creditors long-term leverage even against debtors experiencing temporary financial difficulty.
The Collection Process
Phase 1 — Mahnung (formal demand). A German-speaking collector sends a formal demand citing the specific claim, accrued interest under §1333 ABGB (Austrian Civil Code), and the deadline for payment. Austrian statutory interest on commercial debts is 9.2 percentage points above the ECB base rate — slightly higher than Germany's 9 points.
Phase 2 — Amicable recovery. Resolution rates for commercial debts under 12 months in Austria average 65-70% — comparable to Germany. Austrian businesses take payment obligations seriously, and a professional demand from a local agency typically triggers rapid resolution.
Phase 3 — Mahnklage / Klagsverfahren. If amicable efforts fail, the Mahnklage for claims under €75,000 is the fastest path. For contested claims, Austrian commercial litigation runs 6-14 months in the Landesgericht, with specialised commercial senates (Handelssenate) handling business disputes.
Phase 4 — Enforcement (Exekution). Austrian enforcement is handled by the Bezirksgericht through the Exekutionsordnung (Enforcement Code). Tools include Forderungsexekution (attachment of bank accounts and receivables), Fahrnisexekution (seizure of movable assets), and Zwangsversteigerung (forced sale of real property). Austrian courts can also issue a Vermögensverzeichnis — requiring the debtor to disclose all assets under oath.
What Makes Austria Distinctive
The KSV1870 credit registry. Austria's Kreditschutzverband von 1870 (KSV1870) is one of Europe's oldest and most comprehensive credit registries. A negative entry affects the debtor's banking relationships, insurance costs, and commercial standing. The threat of KSV1870 registration is a powerful motivator in Austrian commercial collections.
Insolvency awareness. Austria's insolvency framework (Insolvenzordnung) provides for Sanierungsverfahren (restructuring proceedings) that can freeze creditor claims. Acting before a debtor enters Sanierungsverfahren is critical — once proceedings commence, recovery rates for unsecured commercial creditors drop to 15-25%.
Statute of limitations: 3 years for commercial claims, 30 years for claims confirmed by judgment. The 3-year period runs from when the creditor knew or should have known of the claim.
Professional collection fees in Austria run 10-20% contingency. The Mahnverfahren costs are modest, and the 30-year judgment period provides long-term enforcement leverage few other jurisdictions can match.
