An international debt collection procedure proceeds through Dutch courts when jurisdiction exists based on establishment, contract performance, or forum selection clauses. The EEX Regulation (Brussels I-bis) determines within the EU which court has competence, after which service through foreign authorities and translation of documents become necessary before you obtain an enforceable judgment.
Increasingly, Dutch businesses face unpaid invoices from foreign clients. A claim of €45,000 against a Swedish customer or a dispute with a German supplier requires specific legal knowledge of international procedures. The jurisdiction of Dutch courts depends on concrete connecting factors such as place of establishment, place of contract performance, or forum selection clauses in your general terms and conditions.
Litigating against a foreign company in the Netherlands offers strategic advantages: you determine the competent court according to your general terms, avoid lengthy procedures abroad, and maintain control over litigation costs. However, international procedures require specific procedural actions for service and communication. Therefore, thorough knowledge of jurisdiction, applicable law, and enforcement possibilities is essential for a successful outcome.
When Does the Dutch Court Have Jurisdiction for International Disputes Under Dutch Law?
The Dutch court declares itself competent when sufficient connecting factors with the Netherlands exist according to the Brussels I-bis Regulation, national legislation, or international treaties. International jurisdiction determines which court may handle a dispute between parties from different countries. Without correct jurisdiction, a ruling is not internationally enforceable, making prior verification crucial.
EEX Regulation Within the European Union
The Brussels I-bis Regulation forms the most important legal framework for jurisdiction within the EU. As a general rule, you sue a defendant in the country where they are established: a German company before the German court, a French party before the French court. This principle of the defendant’s domicile provides legal certainty and prevents arbitrary forum choices in cross-border disputes.
The regulation recognizes important exceptions for contractual obligations and commercial transactions. For sales agreements, you are competent to summon the counterparty before the court of the place where goods were delivered or should have been delivered. Delivery under “EX-works” Incoterms conditions means, for example, that delivery takes place at the seller’s business premises, making the court in that district competent.
Forum Selection Clauses as Strategic Instrument
Contractual agreements can override the EEX Regulation by explicitly establishing Dutch jurisdiction. A forum selection clause in your general terms and conditions or sales contract determines in advance which court has jurisdiction, regardless of where parties are established. These clauses offer strategic advantages: procedures proceed in Dutch, you benefit from familiarity with the Dutch legal system, and enforcement possibilities improve significantly.
A Dutch supplier can, for instance, determine that the Amsterdam District Court handles all disputes, even for deliveries to foreign customers. Moreover, contractual obligations that must be performed in the Netherlands create additional jurisdiction for the Dutch court according to Article 7 paragraph 1 sub b of the Brussels I-bis Regulation.
Establishment of Foreign Companies in the Netherlands
You can summon a foreign company with Dutch establishment, branch, or permanent representative before the Dutch court. The EEX Regulation defines “establishment” broadly: a sales office, distribution center, or permanent agent also suffices. Consider a Belgian wholesaler with a warehouse in Amsterdam or a German software supplier with Dutch customer service.
These connecting factors make the Dutch court competent for all disputes related to the Dutch activities of the foreign party. Delivery of goods or services in the Netherlands creates jurisdiction, even without Dutch establishment. Online sales to Dutch consumers, installation of machines in Dutch factories, or consultancy services at Dutch companies fall under this category.
What Practical Steps Does Summoning a Foreign Company Require Under Dutch Law?
Summoning a foreign company requires drafting by a Dutch lawyer, translation into the official language of the country of establishment, and service through the designated foreign authority according to Regulation (EC) 1393/2007. The procedure follows Dutch procedural rules with international complications in service and communication.
Drafting and Translating the Summons
Your lawyer drafts the summons according to Dutch procedural law with all required elements: claim, factual basis, and legal substantiation. The summons must state that the bailiff draws up a writ in accordance with Article 4 paragraphs 1 and 5 and Article 7 paragraph 1 of Regulation (EC) 1393/2007 on service in the Member States. Additionally, the procedure requires a complete translation of the summons and writ in the official language of the country where the defendant is established.
For a Swedish company, this means a Swedish translation; for a German company, a German translation. This translation obligation prevents foreign parties from not understanding or ignoring summonses. Professional legal translations cost on average €0.15 to €0.25 per word, making a summons of 3,000 words generate €450 to €750 in translation costs.
Service Through Foreign Authorities
Service does not occur directly but through the designated foreign authority, usually a bailiff or central authority in the relevant country. The Dutch bailiff sends the summons and translation to the competent receiving authority abroad, which subsequently arranges for local service to the defendant. Thereafter, the documents are returned to the Dutch lawyer.
This process takes an average of 3 to 6 months, especially in countries with slow bureaucracy. When facing imminent limitation or urgent attachment, you can first initiate summary proceedings or lay conservatory attachment on Dutch assets of the debtor. Perfect service prevents later opposition procedures when the defendant disputes valid receipt.
Procedure at the Dutch Court
After valid service, you file the case with the competent Dutch court. The court examines ex officio whether it has jurisdiction according to the Brussels I-bis Regulation. Furthermore, the court determines which substantive law applies: Dutch law in case of choice of law in the contract, or the Vienna Sales Convention for international sales agreements between contracting states.
The procedure follows Dutch law, regardless of the parties’ nationality. Many foreign parties do not appear because they do not understand Dutch summonses or deliberately ignore them. You can request default judgment, but the defendant retains the right to file opposition against the default judgment. With correctly executed service, you significantly reduce the risk of successful opposition procedures.
What Are the Main Procedural Challenges in Dutch Law?
International procedures bring unique challenges: lengthy service, non-appearing defendants, and enforcement problems abroad. These complications require specific solutions to successfully litigate against foreign companies.
Lengthy Service Abroad
Service through foreign authorities takes 3 to 6 months, depending on the efficiency of the receiving country. For time-sensitive cases such as imminent limitation or urgent attachment, you use expedited procedures or conservatory measures. Summary proceedings deliver a preliminary injunction within a few weeks, while conservatory attachment secures Dutch assets of the debtor before the main proceedings start.
Conservatory attachment on Dutch bank accounts, inventories, or intellectual property rights of the foreign debtor significantly increases enforcement chances. However, the attaching party must make sufficiently plausible that a claim exists and enforcement without attachment is at risk. Court fees for conservatory attachment amount to €127 and up, plus bailiff costs averaging €400 to €800 per attachment action.
Non-Appearing Foreign Parties
Many foreign companies do not appear before Dutch courts because they do not understand summonses or deliberately ignore them. You request default judgment against the non-appearing party, after which the court decides based on your submitted documents. However, the defendant retains the right to file opposition within four weeks after service of the default judgment.
Upon opposition, the procedure revives and the court must re-examine the dispute substantively. Careful service according to all formal requirements of Regulation (EC) 1393/2007 minimizes the risk of successful opposition. Document all procedural steps meticulously: acknowledgments of receipt of service, translations, and correspondence with foreign authorities.
Enforcement of Dutch Judgments Abroad
Dutch judgments have been directly enforceable in other EU Member States since 2015 without exequatur procedure thanks to the Brussels I-bis Regulation. For countries outside the EU, you must invoke bilateral treaties or the Hague Convention to obtain recognition and enforcement. Therefore, preferably lay conservatory attachment on Dutch assets of the debtor before claiming.
Upon request, the court certifies a European Enforcement Order (EEO) in the judgment. This certification makes the judgment directly enforceable in all EU Member States without separate recognition procedure. The creditor has the judgment translated and served in the country of enforcement, after which the local bailiff or court implements enforcement measures. Enforcement through this route takes an average of 6 to 12 months, depending on the cooperation of local authorities.
Which Law Applies to International Sales Agreements Under Dutch Law?
For international sales agreements of movable goods between parties in contracting states, the Vienna Sales Convention of April 11, 1980 applies, unless you explicitly make a choice of law for Dutch law. The applicable law determines which rules govern performance, damages, interest, and collection costs.
Vienna Sales Convention as Standard
The Vienna Sales Convention (CISG) regulates international sale of goods between businesses from different contracting states. Article 78 CISG grants you the right to claim interest on unpaid purchase sums, whereby connection is sought with the interest rate of the country where the seller is established. For Dutch sellers, this currently means 8% statutory commercial interest per year.
Article 74 CISG regulates damages and extrajudicial collection costs. Dutch courts often align collection costs with the Decree on Compensation for Extrajudicial Collection Costs that has been in effect since June 1, 2012. This decree uses a scale over the principal: 15% over the first €2,500, 10% over the next €2,500, 5% over the next €5,000, and above that specific percentages up to a maximum of €6,775.
Dutch Choice of Law in Contracts
You prevent discussions about applicable law by explicitly designating Dutch law in your general terms and conditions or sales contract. A choice of law for Dutch law excludes the Vienna Sales Convention and makes Dutch legal provisions on sale, performance, termination, and damages applicable. This offers predictability because your lawyer and the court know Dutch law well.
Combine the choice of law with a forum selection clause for the Dutch court. A complete jurisdiction clause reads: “Dutch law applies to this agreement. All disputes arising from or related to this agreement shall be submitted exclusively to the competent court in Amsterdam.” This double clause maximizes your procedural position in international disputes.
How Does the European Procedure for Small Claims Work in the Netherlands?
The European procedure for small claims offers a fast, inexpensive route for claims up to a maximum of €5,000 within the EU, where no attorney obligation applies and the procedure proceeds largely in writing. This simplified procedure delivers a directly enforceable enforcement order within 3 to 6 months.
Advantages Compared to Regular Procedures
The European procedure for small claims eliminates important procedural barriers. You do not need to engage a lawyer, can submit the form in your own language, and the procedure proceeds primarily in writing without physical hearing. Litigation costs remain limited to court fees and any translation costs, whereas regular procedures generate attorney costs from €3,000 to €8,000.
The court usually decides within 3 to 6 months, considerably faster than the 6 to 18 months for ordinary main proceedings. The judgment automatically receives the status of European Enforcement Order, directly enforceable in all EU Member States without separate recognition procedure. Denmark has not accepted this procedure, requiring you to follow the regular route against Danish companies.
Application Conditions and Limitations
The procedure only applies to claims up to €5,000 excluding interest and costs. Clear, simple commercial cases such as unpaid invoices for delivered goods or services are ideal, whereas complex disputes about product liability or contract interpretation better proceed via the regular procedure. You submit the European form to the competent court, which subsequently invites the defendant to respond in writing.
In absence of defense, the court decides solely based on your submitted documents and usually awards the entire claimed amount. The defendant can submit a review request within 30 days after service of the judgment for demonstrable procedural errors. For higher amounts or complex legal issues, you choose the regular Dutch procedure with full cost regulation and attorney assistance.
What Costs Does an International Procedure Entail According to Dutch Law?
An international debt collection procedure generates higher costs than national procedures due to translation costs, extended lead times, and specialized attorney support. Realistic budgeting prevents financial surprises during the procedural course.
Litigation Costs and Court Fees
Court fees for claims above €25,000 amount to €4,668 for natural persons and €9,336 for legal entities at Dutch courts. Attorney costs for international procedures vary from €5,000 to €15,000 depending on complexity, the claimed amount, and the number of procedural documents. Bailiff costs for service average €400 to €800 per writ, whereby international service through foreign authorities generates higher costs.
Translation costs for summons, pleadings, and judgment amount to an average of €1,000 to €3,000 depending on the language and scope of documents. Spanish and Italian translations generally cost less than Scandinavian or Eastern European languages due to availability of sworn translators. Conservatory attachment prior to the procedure costs an additional €800 to €2,000 in bailiff costs plus any bank charges.
Extrajudicial Collection Costs
Prior to judicial procedures, you undertake extrajudicial collection attempts through reminders and demands. The Decree on Compensation for Extrajudicial Collection Costs uses a scale from 15% over the first €2,500 to a maximum of €6,775 total, which you receive reimbursed from the debtor after a successful judgment. You must pre-finance these costs but they become part of the amount to be awarded upon allowance of your claim.
International debt collection procedures take an average of 12 to 24 months from summons to enforcement of the judgment. Interest on the claimed principal partially compensates the financial burden of this extended lead time. For a claim of €45,000 at 8% statutory interest, this generates €3,600 extra per year, whereby the total amount to be awarded after 18 months increases to approximately €50,400 excluding litigation costs.
What Should You Consider in Contracts with Foreign Parties Under Dutch Law?
Prevent international disputes by making clear agreements in advance about forum selection, applicable law, delivery conditions, and payment modalities in your contracts or general terms and conditions. Proactive contractual protection minimizes the risk of lengthy procedures.
Forum Selection and Choice of Law Clauses
Include a forum selection clause in every international contract that designates the Dutch court as exclusively competent. Combine this with a choice of law for Dutch law to prevent discussions about applicable law. An effective clause reads: “All disputes arising from this agreement shall be submitted exclusively to the competent court in Amsterdam. This agreement is governed exclusively by Dutch law, excluding the Vienna Sales Convention.”
Discuss these clauses during the negotiation phase, not afterwards during disputes. Foreign parties accept forum selection more readily during contract conclusion than during conflict situations. Have your general terms and conditions translated into the language of your trading partner and ensure unambiguous acceptance through signature or explicit reference in order confirmations.
ICC Incoterms and Payment Conditions
Use International Chamber of Commerce (ICC) Incoterms 2020 to unambiguously establish delivery obligations. EXW (Ex Works) means delivery at your business premises, CIF (Cost Insurance Freight) includes transport and insurance to destination port, whereas DDP (Delivered Duty Paid) implies complete delivery at the buyer’s location. Clear Incoterms prevent disputes about transport risk and costs.
Explicitly agree on payment conditions: advance payment for new relationships, documentary credit for larger orders, or payment terms of 30 to 60 days for trusted relationships. Documentary credit through banks offers optimal security but costs 0.5% to 2% of the order value in bank charges. Credit insurance covers 85% to 90% of outstanding claims against premiums from 0.3% of the insured turnover.
What Are the Alternatives to Judicial Procedures in the Netherlands?
Arbitration and mediation offer faster, cheaper alternatives to judicial procedures for international disputes, whereby expert arbitrators or mediators arrive at binding or agreed solutions. These forms of Alternative Dispute Resolution (ADR) eliminate many disadvantages of international litigation.
International Arbitration Through ICC
The International Chamber of Commerce (ICC) offers specialized arbitration for international commercial disputes. Arbitration proceeds faster than judicial procedures (average 12 to 18 months), is less formal, and arbitrators usually possess more specialized knowledge than judges. You choose which language and which law arbitration follows, whereas arbitral awards are internationally more easily enforceable than court rulings.
Include an arbitration clause in international contracts: “All disputes arising from this agreement shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with said Rules.” Arbitration costs vary from €3,000 to €50,000 depending on the dispute value and complexity, comparable to or slightly lower than judicial procedures.
Mediation as First Step
Mediation offers a voluntary, confidential route whereby a neutral mediator guides parties toward a negotiated solution. Successful mediation takes 1 to 3 months and costs €2,000 to €5,000 in mediator fees, considerably less than procedures or arbitration. Approximately 70% of mediations result in a settlement agreement that both parties sign.
Start with mediation before you litigate or invoke arbitration. A mediation-first clause reads: “Parties commit to settling disputes first through mediation before initiating arbitration or judicial procedures.” This clause prevents escalation and preserves business relationships that procedures often permanently damage. Upon failure of mediation, procedures and arbitration remain available.
Contact Us for Specialized Support
Are you dealing with an unpaid claim against a foreign company or facing an international dispute? Our specialized lawyers in Amsterdam analyze your legal position, assess the jurisdiction of Dutch courts, and advise on the most effective strategy: judicial procedure, arbitration, or mediation.
We possess thirty years of experience with international debt collection procedures within and outside the European Union. Our network of international legal partners through Euravocat ensures local expertise for enforcement of judgments abroad. Contact us for a non-binding analysis of your situation and realistic assessment of costs, lead time, and chances of success.
Contact our law firm in Amsterdam today for personalized legal advice about your international debt collection or commercial dispute. We will discuss your options and develop a strategy that optimally protects your interests.
