The Tax Identification Number (NIF) is an essential requirement for any company planning to operate legally in Spain. Without this number, you won’t be able to conduct business activities or meet the tax obligations set by the Spanish Tax Agency (Agencia Tributaria). In this article, we’ll explain what the NIF is, why you need it, and how to obtain it step-by-step.
What is the Tax Identification Number (NIF), and what is it used for in Spain?
The Tax Identification Number (NIF) is an alphanumeric code used to identify both individuals and legal entities in their dealings with the Spanish Tax Agency. For companies, the tax identification number in Spain acts as the identification number on all legal, commercial, and tax-related documents. This number allows you to:
- Identify the company to the Tax Agency.
- Conduct commercial and business operations.
- Fulfill tax obligations, such as filing returns.
- Participate in public tenders or sign contracts with public administrations.
- Operate legally and transparently with suppliers, clients, and banks.
Important: Without a NIF, your company cannot issue invoices or conduct any commercial operations in Spain.
Difference Between NIF, CIF, and NIE
People often confuse the NIF with terms like CIF or NIE. Here’s what sets them apart:
NIF (Tax Identification Number): The current term used for identifying both individuals and companies in their dealings with the Tax Agency.
CIF (Corporate Tax Identification Code): Previously used for companies, this term was replaced by tax identification number in Spain in 2008 but is still commonly used informally.
NIE (Foreigner Identification Number): This number identifies foreign residents in Spain for both tax and administrative purposes.
Steps to obtain your company’s Tax Identification Number in Spain
1. Incorporate Your Company:
Before applying for the Tax Identificacion Number in Spain, you need to legally establish your business. This involves:
- Drafting the company’s bylaws: Defining the internal rules of the business.
- Choosing the legal structure: Options include a Limited Liability Company (S.L.), Public Limited Company (S.A.), or another form that suits your needs.
- Registering with the Commercial Registry (Registro Mercantil): This is mandatory to validate your company’s incorporation.
2. Apply for a Provisional NIF:
Once the company is established, the next step is to apply for a provisional Tax Identification Number in Spain (NIF). This number is valid for six months and is used while completing the final incorporation process. To apply, you’ll need:
- To submit Form 036 to the Tax Agency.
- The company’s incorporation deed.
- Identification of the legal representative (DNI or NIE).
- A certificate confirming the company name’s availability.
You can complete this process in person at a Tax Agency office or online through their electronic headquarters.
3. Register with the Commercial Registry:
With the provisional NIF, you must register the company with the appropriate provincial Commercial Registry. This registration is necessary to obtain the definitive NIF.
4. Obtain the Definitive Tax Identification Number in Spain:
After registering with the Commercial Registry, return to the Tax Agency and submit the registered incorporation deed. The Tax Agency will validate the documentation and issue the definitive NIF, which will permanently identify your company.
Tax Identification Number in Spain: Process for European and non-EU companies
If your foreign company wants to operate in Spain, you also need to obtain a NIF. The procedure varies slightly depending on whether your company is based in the European Union or outside it:
Companies from the European Union:
- Appoint a tax representative: If your company doesn’t have a permanent establishment in Spain, you must appoint a tax representative in the country. They will act as the intermediary between your company and the Tax Agency.
- Submit Form 036: Indicate that it’s for a non-resident entity.
- Required documentation:
- Translated and legalized company incorporation deed.
- Certificate of registration from the home country.
- Identification of the legal representative (DNI, NIE, or passport).
Companies from outside the European Union:
- Obtain a NIE for the legal representative: If the representative is not a resident in Spain, they’ll need a NIE.
- Appoint a tax representative: Mandatory for non-resident companies wanting to operate in Spain.
- Additional documentation: Besides the incorporation deed, you’ll need to present a declaration of the business activities planned in Spain. All documents must be apostilled and officially translated.
Note: The Tax Agency may request additional information, particularly if the company plans to establish a business center in Spain.
Ready to start operating in Spain?
Obtaining a Tax Identification Number (NIF) is a crucial step in Spain for any company that wants to operate legally. Whether your business is domestic or foreign, meeting the Spanish Tax Agency’s requirements ensures transparent and secure operations.
Need help to set up a company in Spain? We offer a specialized business creation service that includes all the necessary steps to obtain your NIF. Contact us, and we’ll guide you through every step of the proces
