Late Payments 2026: The New Bill and What Businesses Need to Do Today

On average, an Albanian business waits many months to collect payment on an invoice issued to a private client or to a public institution. Payment delays are one of the main causes of liquidity problems for small and medium-sized enterprises.

On May 19, 2026, the Ministry of Economy and Innovation published for public consultation A draft law that fundamentally changes the way late payments are handled in Albania. The draft aims to fully align Law No. 48/2014 with the European Union's Directive 2011/7/EU, as part of the commitments under Chapter 20 of European integration.

In this article, we will explain exactly what changes for businesses, who falls within the scope of application, what your business can do today to be prepared, and how you can participate in the public consultation that closes on June 15, 2026.

Read also: Overview of the Regulatory and Tax Framework in Albania.

Why were these changes proposed?

Current law No. 48/2014 “Late Payment of Commercial and Contractual Debts” came into force to regulate payment terms and late‐payment interest in commercial transactions. However, the alignment with the Directive… 2011/7/BE The European Parliament and Council's version was incomplete. Some definitions remained narrower than those in European law, and several important rules for creditor protection were missing.

The new draft law is intended to close this gap and to fulfill the closing benchmarks of Chapter 20, “Enterprises and Industrial Policies,” in the negotiations with the European Union. The specific problems it addresses are systematic payment delays that harm the liquidity of small and medium-sized enterprises, the lack of a clear mechanism for agreed-upon late-payment interest, and the undue narrowing of the circle of entities covered by the law.

What changes for enterprises in B2B relationships?

There are three changes that directly affect any business that issues or receives invoices from another business.

Maximum payment deadline

The draft law establishes a clear cap. The payment term set out in the contract between undertakings may not exceed 60 calendar days. The only exception is when the parties expressly agree otherwise in the contract, provided that such term is not manifestly unfair to the creditor.

This cap did not previously exist in the current law in such a clear way. Many businesses have found themselves forced to accept 90- or 120-day payment terms from large clients, which jeopardizes their liquidity. Under the proposed change, any term exceeding 60 days will require clear justification and cannot be imposed unilaterally.

Late fees arise automatically.

According to the draft law, the creditor is entitled to late‐payment interest without having to send a notice or payment reminder. It is sufficient that the creditor has fulfilled his contractual and legal obligations and that payment has not been received within the agreed period.

This is an important shift in practice. Many businesses currently do not charge late fees because the procedure is complicated or because they think a formal notice is required. Under the new rule, late fees automatically accrue from the day after the due date.

If the payment date is not specified in the contract, Late interest automatically begins to accrue after 30 calendar days have passed from the date of receipt of the invoice, or from the date of delivery of the goods when the invoice date is uncertain, or from the completion of the acceptance testing procedure when such a procedure is provided for by law or contract.

Deadline for the inspection of goods and services

The maximum duration of the acceptance or commissioning procedure shall not exceed 30 calendar days from the date of acceptance of the goods or services. Here too, the parties may expressly agree on a different period, but only if such an extension does not constitute an unfair contractual term.

In practice, this means that contracts providing for 60- or 90-day acceptance procedures without objective justification will be invalid.

What changes for transactions with public authorities?

For transactions where the debtor is a public authority, the rules are even stricter. The payment term specified in the contract may not exceed 30 calendar days. This term may be extended to a maximum of 60 calendar days only if expressly agreed in the contract and if this extension is objectively justified by the nature or particular characteristics of the contract.

A particularly important rule is that the invoice receipt date cannot be subject to a contractual agreement between the debtor and the creditor. Any contractual provision aimed at postponing the invoice receipt date is invalid. This protects businesses that supply public institutions from the common practice of refusing or delaying official acceptance of the invoice.

Late interest in these cases is calculated automatically from the day after the deadlines expire, without the need for formal notice or a demand for default under the general rules of the Civil Code.

Who enters the field of implementation

The draft law significantly expands the scope of entities protected by the late payment rules. There are three reformulated definitions that need to be understood.

“Entrepreneurship” now includes freelancers and individual traders.

According to the draft law, an undertaking is any form of organization or entity, other than a public authority, that operates within the framework of its independent economic or professional activity. This includes cases where such activity is carried out by a single individual as a natural person, a sole trader, or a self-employed professional.

This is a change that affected many professionals. Currently, individual traders and self-employed professionals (lawyers, accountants, architects, physicians in private practice) are in a gray area when it comes to the application of late‐payment rules. Under the new definition, they have the same protections as trading companies.

“Public authority” is expanded to include entities regulated by public law.

The new definition includes any state contracting authority, central and local government units, special fund institutions, as well as joint associations, groupings, or entities formed by one or more of these authorities. Importantly, this definition applies regardless of the subject matter, the contracting party, or the value of the contract.

The base interest rate is harmonized with European standards.

The draft law also reformulates the way the base interest rate for the lek, the euro, and foreign currencies is calculated. For the lek, the rate of the REPO operations approved by the Supervisory Council of the Bank of Albania is used. For the euro, the rate of the European Central Bank's main refinancing operations is used. For foreign currencies, the rate of the respective central bank that issues the currency is used.

Acceleration of the judicial procedure for the execution order

The draft law establishes a clear deadline for the court. When the creditor seeks the enforced execution of an unpaid obligation together with late interest and reimbursement for recovery costs, the court must issue the execution order within 90 calendar days from the date the request is filed.

This deadline applies on the condition that the debt or other elements of the proceedings are not contested. In practice, this rule is intended to put an end to procedural delays that often lead creditors to abandon judicial pursuit.

What can your business do today?

Although the draft law has not yet taken legal effect, the direction of the changes is clear and it is very likely to be adopted by 2026, as it is a direct obligation under Chapter 20 on EU integration. There are five actions that can be taken right now.

First, review existing contracts with customers and suppliers. Identify those that provide payment terms exceeding 60 days between businesses, or over 30 days with public authorities. Assess whether these terms are objectively justified by the nature of the contract.

Second, standardize the new contracts according to the new deadlines. This saves you rework costs when the law is enacted and puts you in a stronger negotiating position with the parties.

Third, review any clauses that may be considered unfair. Clauses that extend the payment deadline without objective justification, that exclude the right to late‐payment interest, or that provide for acceptance‐testing procedures lasting more than 30 days will be at risk of invalidity under the new rules.

Fourth, set up or update your unpaid invoice tracking system. With late fees that accrue automatically, each day of delay translates into a specific amount owed to you. Without a well-organized system, this right is effectively lost.

Fifth, prepare an internal policy for pursuing late‐payment interest. Decide when and how you will notify the client of his obligation, and what the process will be before initiating legal proceedings.

How to participate in the public consultation

The public consultation on the draft law runs from May 19 to June 15, 2026. Comments can be submitted through three channels.

The first way is through the Electronic Register for Public Notices and Consultations (RENJK) at konsultimipublik.gov.al, in the consultations section, under consultation no. 973.

The second way is by email at the address [email protected].

The third way is by physical mail to the address: Ministry of Economy and Innovation, Dëshmorët e Kombit Boulevard No. 1, Tirana 1001, Albania.

In addition to these, public meetings have also been scheduled at the Business House near the Pyramid, running parallel to the consultation period.

Participation in the consultation is not merely formal. Concrete comments from businesses can lead to significant changes in the final text. Especially for small and medium-sized enterprises, this is an opportunity to voice practical concerns arising from the proposed deadlines and implementation mechanisms.

Why it Matters

Late payments are one of the oldest and most overlooked problems in the business environment in Albania. Every day of delay in collecting an invoice means less money in circulation to pay suppliers, wages, and taxes. For a small business, a large client that pays 120 days late can become an existential threat.

The proposed amendments establish clear deadlines for the first time, automatic accrual of late‐payment interest without notice, and a firm judicial deadline for the execution order. If adopted as currently drafted, they would fundamentally shift the bargaining power balance between creditor and debtor in favor of the party who has performed the work and expects to be paid.

Businesses that prepare starting today, review contracts, and strengthen their internal payment-tracking systems will be in the best position to take advantage of the new rules from day one of their implementation.

Frequently asked questions

Will the law be applied immediately or only after it's approved?

The bill is currently in the public consultation phase and has no legal force. After the consultation closes on June 15, 2026, the text may undergo changes before being sent to the Assembly for approval. It is scheduled to enter into force 15 days after publication in the Official Gazette of the enacted law.

What if my current contract provides for payment terms longer than 60 days?

Existing contracts will continue to be enforced according to the agreed-upon terms until the law is enacted and takes effect. Once the new rules are implemented, contractual provisions that are clearly unfair to the creditor may be deemed invalid. It is recommended that new contracts be drafted now in accordance with the proposed deadlines.

How is late interest calculated under the new rules?

Late‐payment interest is calculated by applying the base interest rate of the relevant central bank (the Bank of Albania for the lek, the European Central Bank for the euro, the respective central bank for other currencies), plus a margin specified by law. The calculation is made for each day of delay from the date after the due date.

Are liberal professions and individual traders covered?

Yes. Under the bill's new definition of “enterprise,” activities carried out by a single individual—whether a sole trader or a self-employed professional—are also included. This is a significant change compared to the current law.

Can I claim late interest even without expressly providing for it in the contract?

Yes. The draft law provides that statutory interest automatically accrues upon the expiration of specified deadlines, without it having to be expressly provided for in the contract and without the need for formal notice. The creditor's right arises automatically; it is sufficient that he has fulfilled his contractual and legal obligations.

How can I participate in the public consultation?

Comments may be submitted until June 15, 2026 via the RENJK platform at konsultimipublik.gov.al, by email to [email protected], or by mail to the Ministry of Economy and Innovation, Dëshmorët e Kombit Boulevard, No. 1, Tirana 1001. Public meetings are also scheduled at the Business House.

Read also: Double Taxation Avoidance: New Guideline and Latest Changes in Albania