What is a periodic penalty payment (dwangsom) under Dutch law?

Dutch term: Dwangsom | Legal basis: Article 611a of the Dutch Code of Civil Procedure

A periodic penalty payment (dwangsom) is a court-ordered penalty of a specified amount per day, per week or per violation, imposed to compel a party to comply with a court order for specific performance. It is regulated by article 611a of the Dutch Code of Civil Procedure and is one of the most commonly used enforcement tools in Dutch civil litigation.

The dwangsom is attached to a specific performance order: deliver goods, stop an infringing act, hand over documents, comply with a contractual obligation. If the ordered party fails to comply within the specified period, the penalty accrues automatically. Amounts typically range from several hundred to several thousand euro per day or per violation, depending on the nature of the order and the financial position of the ordered party.

The dwangsom can be imposed in both regular proceedings and summary proceedings (kort geding). In practice, it is almost always requested alongside any specific performance claim, because a performance order without a dwangsom has no teeth: the ordered party can simply ignore it without financial consequence.

Why it matters for international businesses

For creditors seeking compliance with a contractual obligation rather than just damages, specific performance reinforced by a dwangsom is often the most effective route. See our breach of contract litigation page or contact us.