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french Legal Interest Rates updated for First Half of 2026
the French legal interest rate, crucial for calculating default interest on late payments, has been updated for the first half of 2026. This reference rate, established by decree, applies nonetheless of the debtor’s status and varies based on whether the creditor is a professional or an individual.
Two-Tier Rate System
As in previous years, two levels of rates are in effect:
- 2.5% for professional creditors, a slight decrease from the 2.76% applied in the second half of 2025. Service-Public.fr
- 6.8% for individual creditors, a slight increase from the 6.65% of the previous semester. Service-Public.fr
These rates are annual. Calculating default interest requires a semester-based approach, considering the exact number of days of delay relative to a 365-day year.
increased Rates Following Judicial Decision
When a debt arises from a court decision, the legal interest rate is increased by five percentage points after the second month following the date the judgment is enforceable. This enforceability date is either the expiration of appeal periods or the notification of the judgment with provisional execution.
For the first half of 2026, the increased rates are:
- 7.5% for professional creditors.
- 11.8% for individual creditors.
Specific rules for professional-to-Professional Transactions
Transactions between professionals are subject to stricter regulations. Default penalty rates cannot be less than three times the legal interest rate, equating to 7.875% for the first half of 2026. Without a contractual agreement, the applicable rate is the European Central Bank (ECB) refinancing rate plus 10 percentage points, currently 12.15% as of June 15, 2025. Banque de france These measures aim to encourage timely payments and protect the cash flow of creditors, particularly in an economic climate where payment delays pose a risk to many businesses.
Frequently Asked Questions (FAQ)
What is the legal interest rate?
The legal interest rate is a reference rate used in France to calculate the default interest owed on late payments. It’s set by the government and applies to various types of debts.
How is default interest calculated?
Default interest is calculated on a semester basis, taking into account the exact number of days the payment is late, relative to a 365-day year. The applicable rate depends on whether the creditor is a professional or an individual.
What happens if a debt is based on a court judgment?
If a debt is the result of a court judgment,
