How to Enforce Debt Claims in the Czech Republic as an Icelandic Business

Practical Legal Steps

|Attorney|Czech Bar Association Reg. No. 14692

Published:3/12/2026

Czech debt enforcement, known as exekuce , is a formal legal process that begins only after you have obtained what the Czech legal system calls an enforceable title ( exekuční titul ). This distinction is fundamental and often misunderstood by foreign creditors. An enforceable title is not simply a contract or an unpaid invoice; it is a formal legal document issued by a court or other authorized body that confirms your right to payment.

Key takeaways

Enforcement is a two-stage process: First, get a title (Court Judgment or Payment Order). Second, hire a private executor.

Icelandic status: You generally cannot use the EU European Payment Order. Use the domestic Czech Payment Order or enforce your Icelandic judgment via the Lugano Convention.

Strict Formalism: Miss the pre-action letter deadline? You lose cost recovery. Mess up the evidence? Payment Order rejected.

Costs: Expect to advance 4-5% in court fees + legal costs. Most is recoverable from the debtor if they have assets.

Time: 3-6 months for clean cases; 1+ years for disputes.

ARROWS law firm

245 007 740 consultation@arws.cz

Conclusion

Enforcing a debt claim in the Czech Republic as an Icelandic business is achievable, but it requires precision. The Czech system favors creditors who follow the rules strictly—particularly regarding the Pre-Action Call and the Electronic Payment Order filing.

The lawyers at ARROWS Law Firm handle enforcement matters for Nordic creditors daily and bring practical experience navigating Czech courts and executors.

If you have an unpaid invoice from a Czech customer, contact ARROWS Law Firm at consultation@arws.cz.

FAQ – Frequently asked legal questions

1. My Czech customer has not paid an invoice. Can I send the executor immediately?

No. You must first obtain a court decision (Enforceable Title). Only then can the executor act.

2. Does the "European Payment Order" apply to Iceland?

Generally, no. Since Iceland is not an EU member state, the Regulation does not apply to direct relations unless specific criteria are met. You should use the Czech Electronic Payment Order or the Lugano Convention for existing Icelandic judgments.

3. What is the deadline for the pre-action letter?

You must send it at least 7 days before filing the lawsuit to be eligible for cost reimbursement.

4. How much interest can I claim?

Unless your contract states otherwise, you can claim the statutory rate: CNB Repo Rate + 8% p.a.

5. Who pays the costs?

You pay upfront (court fees, legal retainer). If enforcement is successful, the debtor reimburses these costs to you. If the debtor is insolvent, you bear your own legal costs and potentially the executor's minimum expenses.

ARROWS law firm

245 007 740 consultation@arws.cz

About the author

Mgr. Vojtěch Sucharda

Associate, partner

LinkedIn|Czech Bar Association Reg. No. 14692

Managing Partner ARROWS International | Head of Legal Practice Group ETL Global

sucharda@arws.cz 245 007 740

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Disclaimer:

The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (consultation@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.