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What is the NIF in Spain and how to obtain it?

In order to establish your company in Spain it is important that you are aware of the mandatory procedures that you must follow to take your business forward. The NIF, or Tax Identification Number, is one of the most important and essential for the operation of your company. Find out what is the NIF in Spain, what are its types and how to apply for it below.

What is the NIF in Spain?

The Tax Identification Number (NIF) is the unique code used to identify natural or legal persons for tax purposes, and is therefore necessary to carry out any tax process in Spanish territory.

The NIF is mandatory and represents a guarantee for any business relationship, since it is linked to a business address, so that it can be traced and its authenticity checked. This means that beyond identifying us with the public administration, anyone can check our identity and we can check theirs through the NIF, and thus know if the person we are doing business with is trustworthy.

There are two types of NIF, the one for companies or legal entities and the one for individuals. Let’s see them in detail below.

NIF for individuals and self-employed

The NIF for individuals is the same code of their identity document, in the case of Spanish citizens it will be that of the DNI (National Identity Document) and in the case of foreigners residing in Spain it will be that of the NIE (Foreign Identification Number).

NIF for companies

In the case of companies, they must apply for the NIF before the Tax Agency, exactly one month after the date of registration of the legal entity, i.e., one month after the company is created.

Basically, without this document the company does not exist for tax purposes, so we could say that the NIF is like the ‘identity document‘ of the companies.

There are different formats to identify each type of NIF, and not only at the level of natural or legal person, but with a series of variants that will indicate specific characteristics of the person who has it. We will be more explicit and we will show it to you graphically.

Formats of the NIF

In order to clearly understand how the formats are classified in the different cases and types of NIF, we will divide them into: NIF formats for individuals and NIF formats for legal entities.

NIF format for individuals

In the case of individuals, the format varies depending on whether or not they have a DNI for nationals, or whether or not they have a NIE for foreigners. Let’s see it.

NIF format for legal entities

The NIF format for legal entities consists of a letter that will depend on the legal form it has, 7 digits and the control code that can be a number or a letter. See it in detail below.

There are letters that are not used to avoid confusion, such as the “i”, “ñ” or “o”, to avoid confusion with characters such as the numbers 1 and 0 or the letter N.

 

So, what is the CIF?

If you had a commercial activity in Spain prior to 2008, or you just did a Google search, you probably saw the acronym ‘CIF’ next to ‘NIF’. This is because until 2008 the NIF was the fiscal denomination only for individuals, while for legal entities the denomination was the Tax Identification Code or CIF.

As of January 1, 2008, it was established that for both types of fiscal personalities, the NIF will be used, as we saw previously.

All legal entities that had a CIF until 2008, kept the same code, only now it is called NIF. There is no difference.

 

Now.

What is the NIF for?

As we said, the Tax Identification Number is necessary for any type of economic operation, since all of them must be declared before the Tax Agency (AEAT).

These operations may be, as indicated by the AEAT, “all self-assessments, declarations, communications or writings submitted to the Tax Administration”.

When is the NIF used?

More specifically, the NIF must appear in:

  • Invoices issued by any company or professional established in Spain.

  • Receipt or payment to any dependent worker in Spain.

  • Receipt or payment of movable capital in Spain or from goods or securities located in the country.

  • Transfer or acquisition of securities.

  • Acquisition of financial assets with implicit yield.

  • Deeds or documents of incorporation, acquisition, transfer, modification or extinction of real property rights.

  • Transactions with credit institutions

  • Contribution to or receipt of pension plans

  • Insurance or financial operations.

 

As you saw, having a NIF is absolutely necessary when performing any commercial activity, and you may be wondering then, how to obtain it? Let’s take a look at it.

How to obtain the NIF in Spain?

Obtaining the NIF for individuals or self-employed persons

Individuals will keep the same document number (DNI or NIE as the case may be) with a control letter, which is why you will not have to apply to
AEAT, unlike legal entities

However, if your intention is to work as an independent professional, you must register as self-employed in the census of entrepreneurs, professionals and retentive, for this, it is necessary (and mandatory in fact) that you fill out the Model 036 or 037 to inform the tax agency that you are carrying out the economic activity in which you develop.

Fact: You do not need to file both forms, as they fulfill the same function, they just apply to different cases.

Obtaining the NIF for legal entities

The application for the NIF for legal entities is mandatory and must be made one month after the date of registration or incorporation of the company.

The procedure can be carried out in person or electronically, in both cases the procedure is similar. For the purposes of the following step by step, we will focus on form 036, which can be used in general by any taxpayer.

Step 1: Access the 036 form to file it electronically or physically

Enter the Electronic Headquarters of the Tax Agency in the section Census, NIF and tax domicile / Census where you will find Forms 036 and 037. Census of businessmen, professionals and withholders.

If you are going to complete and file the tax return in person, you must access the section that indicates the “Completion, validation and obtaining in PDF for printing“, which will take you to a page with the options to fill in as a draft to then validate and download in PDF format, ready for printing, so that you can present it physically at the Tax Agency Administration or Delegation.

Important note: As indicated in the AEAT portal, this form is invalid until it is submitted to the corresponding offices. Therefore, the filing date must be the same date placed on this form before printing. The draft can be used within a maximum period of one month after its validation and issuance at the AEAT E-Office, after that period, it will be deleted and you will have to go through the process again.

If you are going to complete and file the tax return online, you will need to access the section that indicates “Online completion and filing” through Electronic Certificate , electronic DNI or Cl@ve PIN.

Step 2: Fill in the model

In both cases (in person or online) you must fill in the following sections:

  • On Page 1, you must indicate the name of the legal entity and check box 110 if you are applying for the definitive NIF directly, or if you already have a provisional NIF and your intention is to apply for the definitive one, check box 120 (below we will tell you what the provisional NIF consists of). Then place your signature at the bottom of the page next to the date and place.

  • On Page 2B, fill in the boxes corresponding to the identification of the entity for which you are requesting the NIF.

  • On Page 3, identify the legal representatives.

Step 3: Attach documents.

  • DNI, NIE or NIF of the representative of the legal entity.

  • Model of representation, in case the application is through a representative.

  • Original and copy of the Deed of Incorporation of the Company and certificate of registration in the Commercial Registry.

Important note: The founding partners must have their own NIF, whether they are Spanish partners or foreign partners from the EU or non-EU, regardless of whether they are a corporate taxpayer or an entity in attribution of income.

Provisional TIN

In the event that you do not have all the required documentation for the NIF application, the Tax Administration may assign you a provisional NIF.

How to apply for a provisional NIF?

To do this you must follow the same procedure for requesting the NIF as detailed in the previous section, but on page 1, instead of selecting box 110, you will select box 120.

In addition, you must attach the following documents:

  • DNI, NIE or NIF of partners and proxies

  • Document of Agreement of Wills that states the incorporation of the company.

  • The model of representation, in case the application for the provisional NIF is not made by the administrator but by a representative.

The person who acts as representative in the creation of the legal person or entity without personality is the one who must sign the census declaration of application for the provisional NIF.

The AEAT indicates that in addition to requesting the assignment of the provisional NIF, the list of partners, heirs, members or participants must be completed, indicating their share of participation and attribution in the event that such shares do not coincide. If the partners, members or participants are not resident in Spain, their tax residence and the identification of their tax representative in Spain must be stated, if any.

How long does the provisional NIF last?

The validity of a provisional NIF is six months from its assignment, within which time the necessary documentation must be provided to obtain the definitive NIF.

Is it possible to apply for a definitive NIF if I have a provisional NIF?

Yes, in order to apply for it you will have to fill out the 036 form again, and you will have to do it one month after the registration in the Public Registry, as indicated in the regular procedure.

At the time of filing the census declaration with form 036, all the modifications that have occurred with respect to the data initially declared for the assignment of the provisional NIF must be recorded.

If the request for the modification of the provisional to definitive NIF is not made to the Tax Administration once the incorporation process is completed, the NIF may be revoked.

Revocation of NIF

Since 2019, the Spanish government has proposed to purge the censuses and put an end to inactive companies, in order to keep only those companies that really participate actively in the commercial environment of the country. In this case, the Tax Agency assumes that companies that have a null activity, have abandoned them without performing the required legal deregistration procedure to dissolve such a company.

In this case the Administration can make use of this mechanism: The revocation of the NIF. Which is nothing more than making the continuation of the taxpayer’s tax life impossible.

Thus, the revocation of the NIF can be carried out in situations such as:

  • In the event that the Administration receives official communication that a non-existent economic activity is being carried out.

  • When the company has not started its economic activity 3 months after the application for the NIF, or similarly, when the AEAT has not been notified of a justification for the lack of operability.

  • When, in the event that a plurality of companies is incorporated, the minimum disbursement required by law has not been made.

  • In case it is reported that the economic activities, administrative management or business management has been arranged in an apparent or false address.

As you can see, these are extreme cases, so as long as you present the relevant documentation and comply with the required deadlines, the revocation of your NIF should not be a matter of concern.

In any case, before revoking the NIF, the Tax Authorities will send a notice indicating that a hearing is required within 10 days with the taxpayer or representatives of the legal entity.

But, in turn, this revocation can be reversed through a procedure called: Rehabilitation of the NIF.

Rehabilitation of the NIF

In case the reasons for non-compliance are due to force majeure, or if an error has occurred that has resulted in the revocation of your NIF, you can request the reinstatement of your NIF by submitting the following documents:

  • Proof of changes in the ownership of the capital, identifying the persons who now represent the company.

  • Proof of the economic activity to be carried out by the company in case it has changed.

.

If you wish, you can read the Practical Guide of the census declaration of registration, modification and cancellation in the census of businessmen, professionals and withholders that the Tax Agency makes available to see in much more detail each requirement, cases and procedures of this procedure.

 

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For any information or advice, do not hesitate to contact our experts in taxation and business creation to help you in this and any other procedure you need for your company to achieve its growth objectives in Spain.

Find this and other information to successfully start your business in Spain in our blog.

At TAS Consulting, we are your trusted ally.

 

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