French statutory interest rate 2026: rates and calculation for businesses

An invoice left unpaid by a private customer, a formal notice that went unanswered, a court judgment that is slow to be enforced: in each case, the same question comes up when you put a figure on the claim. The French statutory interest rate (taux de l'intérêt légal) changes twice a year, comes in two versions depending on who the creditor is, and must not be confused with the late payment penalties that apply between businesses. Here are the confirmed 2026 rates, the rule for choosing the right one, and a full day-by-day calculation.

Quick answer. From 1 July to 31 December 2026, the French statutory interest rate is 2.75% when the creditor is a business or a company, and 6.84% when the creditor is an individual not acting for professional purposes (ministerial order of 26 June 2026, published in the Journal officiel of 30 June 2026). In the first half of 2026, these rates were 2.62% and 6.67%. The rate for the first half of 2027 will be published at the end of December 2026.

This article covers the statutory interest rate itself: the figures, choosing the right column, the increase after a judgment and the calculation method. The rules specific to business-to-business relationships (the 60-day maximum payment term, mandatory statements in your terms and conditions, fines imposed by the DGCCRF, the French consumer and competition authority) are covered in our article on inter-company payment terms and penalties in your T&Cs. We only touch on them here to explain the floor for late payment penalties.

The statutory interest rate applicable from 1 July to 31 December 2026 is 2.75% for claims held by businesses and 6.84% for claims held by individuals who are not acting for professional purposes. These rates were set by the order (arrêté) of 26 June 2026 on the setting of the statutory interest rate, published in the Journal officiel of 30 June 2026, as confirmed by Service-Public.fr, the French government's official information site.

For the first half of 2026, the order of 15 December 2025, published in the Journal officiel of 26 December 2025, had set the rate at 2.62% for "all other cases" and 6.67% for individuals. Both rates therefore rose slightly from one half-year to the next, by 13 basis points for the business rate and 17 basis points for the individual rate.

Since 1 January 2015, article L313-2 of the French Monetary and Financial Code (Code monétaire et financier) has provided for two separate rates: one applicable when the creditor is an individual not acting for professional purposes, the other applicable in all other cases. They are set every six months by order of the economy minister, based on a Banque de France calculation governed by article D313-1-A of the same code. The "individuals" rate is structurally higher because the formula takes into account the cost of credit borne by households.

The statutory interest rate for the first half of 2027 will be set by an order published at the end of December 2026, applying from 1 January 2027. This is the regular timetable of the system: an order at the end of each half-year, applying to the next one.

Until it is published, two precautions apply:

• do not extrapolate the 2027 rate into a final calculation, even though the trend over recent half-years has been upward;
• for a delay that will run beyond 31 December 2026, prepare a two-slice calculation and complete the second slice as soon as the order is published.

In practice#

If you charge late payment penalties under a clause worded as a fixed percentage, put a reminder in your diary for the end of December to check the new rate. That is the time to confirm that your clause stays above the legal floor of three times the statutory interest rate, explained below.

The correct rate depends on who the creditor is, meaning the party owed the money, not on who the debtor is. This is the most common point of confusion when preparing a debt recovery calculation.

In practice, a SAS (a French simplified joint-stock company) claiming an invoice from a private individual applies the "other cases" rate (2.75% in the second half of 2026). Conversely, an individual claiming a sum from a company, for example an employee who obtains a judgment or a private landlord acting outside any business activity, applies the higher rate (6.84%).

Our view#

For a business creditor, the statutory interest rate is rarely a deterrent: 2.75% a year on an invoice of a few thousand euros amounts to very little. It becomes a real issue on the debtor side, however, when the company owes money to an individual, for example a former employee or a private landlord: the applicable rate is then 6.84%, or even 11.84% after the increase. Between businesses, the relevant lever remains the penalty clause in your general terms and conditions of sale, which cannot go below three times the statutory rate.

The statutory interest rate serves as the benchmark whenever a sum of money is paid late and the contract does not provide for another rate. Article 1231-6 of the French Civil Code sets out the principle: damages for late payment of a sum of money consist of interest at the statutory rate, running from the formal notice (mise en demeure).

It mainly comes into play in four situations:

• default interest claimed after a formal notice: under article 1344-1 of the Civil Code, a formal notice to pay a sum of money starts default interest running at the statutory rate, without the creditor having to prove any loss;
• court judgments, where the judge orders interest to run at the statutory rate;
• the floor for late payment penalties between businesses, which cannot be set below three times the statutory interest rate (article L441-10 of the French Commercial Code);
• various statutory references, for example the repayment, with statutory interest, of sums received without entitlement.

In practice, the date of the formal notice therefore becomes the starting point of the calculation, which is why a dated letter, specific about the amount claimed and with provable receipt, matters.

The five-point increase applies when the debtor ordered to pay has not paid within two months of the day the court decision became enforceable, even provisionally. It is provided for by article L313-3 of the Monetary and Financial Code.

In the second half of 2026, a business creditor therefore moves from 2.75% to 7.75%, and an individual creditor from 6.84% to 11.84%. The increase covers the period after this two-month window, not the entire claim from the outset.

The same article allows the enforcement judge (juge de l'exécution), at the request of the debtor or the creditor and in view of the debtor's situation, to waive the increase or reduce its amount. It should therefore not be treated as a given in a recovery budget.

Points to watch#

On the debtor side, a judgment not settled within two months costs five extra points a year. For a company ordered to pay a former employee, the gap between 6.84% and 11.84% justifies booking a provision as soon as the decision is handed down and arranging payment, or a formal payment schedule, before the window expires.

Interest at the statutory rate is calculated pro rata to the number of days of delay, applying the rate of the relevant half-year to each period. The formula is: principal owed × annual rate × number of days / 365.

Here is the method we recommend:

1. Identify who the creditor is (individual acting outside professional purposes or other case) to pick the right column of the scale.
2. Set the starting point: date of the formal notice, or the date set by the judgment.
3. Split the period of delay by calendar half-year, since the rate changes every 1 January and 1 July.
4. Apply the half-year's rate to each slice, on a 365-day basis.
5. Where applicable, add the 5-point increase for the period after the two-month window following the enforceable decision.
6. Add up the slices and keep the detailed calculation with the supporting documents.

Worked example: a 20,000 euro invoice owed by a private customer#

A building firm set up as a SARL (a French limited liability company) is claiming the 20,000 euro balance of a renovation project from a private customer. The penalty rules of article L441-10 of the Commercial Code do not apply to a consumer and the contract contains no interest clause, so the company claims default interest at the statutory rate. The formal notice is received on 15 March 2026 and payment arrives on 15 September 2026. Since the creditor is a company, the "other cases" column applies.

If the situation were reversed, for example an individual owed 20,000 euros by a company, the same calculation at 6.67% and then 6.84% would give €391.06 and then €288.59, i.e. €679.65. The gap shows why the creditor's status must be settled before any figures are produced.

Between businesses, late payment penalties are governed by article L441-10 of the Commercial Code: they are due from the day after the payment date shown on the invoice, without any reminder being necessary, whereas ordinary default interest at the statutory rate generally requires a formal notice. They are also significantly higher.

Article L441-10 sets out three key rules:

• the penalty rate is the rate applied by the European Central Bank to its most recent refinancing operation, plus 10 percentage points, unless the payment terms provide otherwise;
• any such provision cannot, however, set a rate lower than three times the statutory interest rate, i.e. 7.86% in the first half of 2026 and 8.25% in the second half;
• penalties are due without any reminder being necessary.

On top of this comes the fixed indemnity for recovery costs: any business that pays late owes it automatically, and article D441-5 of the Commercial Code sets it at 40 euros. When the recovery costs actually incurred are higher, the creditor can claim additional compensation, with supporting evidence.

Going back to the 20,000 euros, this time owed by a business customer, with terms and conditions that set the penalty rate at the floor of three times the statutory interest rate and a due date of 15 March 2026: penalties come to €460.83 for the first slice (7.86%) and €348.08 for the second (8.25%), i.e. €808.91, plus the 40 euro indemnity. That is three times the statutory-rate interest calculated over the same period.

In practice#

Check every 1 January and 1 July that the penalty clause in your terms and conditions stays above the floor of three times the statutory rate. A clause worded "three times the statutory interest rate" follows the scale automatically; a clause fixed at a set percentage may fall below the minimum after a rate rise. Our advice: use either the default rate (ECB plus 10 points) or an indexed formula, rather than a figure set in stone.

The most frequent mistakes concern splitting the periods, choosing the rate and proving the starting point. The statutory interest rate looks simple, but each of these errors weakens a recovery calculation.

• Applying a single rate over the whole period. A delay straddling 1 July 2026 must be split: 2.62% before and 2.75% after for a business creditor.
• Using the wrong column. What counts is who the creditor is; a company cannot claim the "individuals" rate from a private customer.
• Confusing default interest with B2B penalties. Between businesses, on a commercial invoice, the article L441-10 penalties apply, not just the statutory rate.
• Forgetting the accounting. Interest and penalties collected are financial income; amounts whose recovery remains uncertain are not recorded as earned income. Confirm the treatment as part of bookkeeping and accounts review.
• Neglecting proof. Without a dated and received formal notice, the starting point of default interest becomes open to challenge.
• Waiting too long. Close monitoring of the aged receivables balance and a four-step customer reminder procedure cost less than litigation.

• The creditor's status is identified (individual acting outside professional purposes or other case).
• The relationship is qualified: invoice between businesses (L441-10 penalties) or other claim (statutory rate).
• The date of the formal notice or court decision is documented.
• The period of delay is split by calendar half-year.
• Each half-year's rate is checked against the official source (order in the Journal officiel, Service-Public.fr).
• The detailed calculation is kept with the supporting documents (invoice, reminders, acknowledgment of receipt).
• The cost of a debt recovery procedure is weighed against the amount actually at stake.

If your invoices are based on a tightly calculated price, a late payment weighs directly on your margin: our method for setting your hourly or daily rate helps build that risk into your pricing.

• From 1 July to 31 December 2026, the statutory interest rate is 2.75% for business creditors and 6.84% for individuals acting outside professional purposes (2.62% and 6.67% in the first half).
• The rate is chosen according to who the creditor is, never according to who the debtor is.
• The calculation is made to the day, splitting the period at each change of half-year.
• The 5-point increase (7.75% and 11.84% in the second half of 2026) applies two months after the court decision became enforceable, unless the enforcement judge decides otherwise.
• Between businesses, late payment penalties cannot be lower than three times the statutory rate, i.e. 8.25% in the second half of 2026, and come with a 40 euro indemnity.
• The rate for the first half of 2027 will be published by order at the end of December 2026.