As from the 13^th of August 2012 the Directive 2011/7/EU of the European Parliament and of the Council of 16^th February 2011 on combating late payment in commercial transactions (recast) has been transposed in Maltese law (Commercial Code) by means of LN272 of 2012.

Extracts from Legal Notice 272 of 2012:

“late payment” means payment not made on the date agreed upon in the contract or according to law, and on the fulfilment of the conditions laid down under article 26C(1) (Dealing with interest in the case of late payment in transactions between undertakings) and article 26D(1) (Dealing with interest in the case of late payment in transactions between undertakings and public authorities).

“legal interest for late payment” means simple interest for late payment at a rate which is equal to the sum of the reference rate and at least eight percent (8%)

The applicable reference rate for:

(a) the first semester of the year concerned shall be the rate in force on 1 January of that year;

(b) the second semester of the year concerned shall be the rate in force on 1 July of that year.

The applicable legal interest rate in the event of late payment in commercial transactions in force from 1^st Jan 2024 is:  12.5%