The NIF is a fundamental document for the self-employed in Spain, this number works to identify natural and legal persons.
However, despite its time of creation, there is still confusion regarding its functionality and applicability. In this blog we will solve all the doubts you have regarding the NIF. In addition, we explain the correct way to obtain it.
What is the NIF in Spain?
The Tax Identification Number is a number assigned by the Spanish Tax Agency to individuals and legal entities. It serves so that both the self-employed and SMEs can identify themselves when carrying out administrative procedures corresponding to their activity.
Types of NIF
Currently there are different types of NIF, which vary taking into account the activity of the holder:
- Fiscal Identification Number of natural persons: It is assigned to natural persons residing in Spain. It is made up of eight numbers followed by a letter.
- Tax Identification Number of legal persons: It is assigned to legal persons such as companies, associations, community property or foundations, which carry out economic activities in Spain. It consists of a letter followed by eight numbers.
- Foreign Identification Number (NIE): it works to identify you as a foreigner who does not have a NIF but resides in Spain and carries out economic activities.
- Company Identification Number (CIF): It was previously carried out as a document that identified Spanish companies. It has now been replaced by the NIF.
Differences between NIF and NIE
The NIF is the Tax Identification Number assigned by the Tax Agency to individuals and legal entities. For its part, the NIE is assigned to foreigners residing in Spain.
Differences between NIF and DNI
Both the NIF and the DNI share a numbering. However, it is important to clarify that they are not exactly the same. On the one hand, the NIF works as a tax identifier to carry out procedures in the Treasury or Social Security, while the DNI serves as the identity document of the holder at the national level.
How to identify my Tax Identification Number
This document can be found in any document issued directly by the Tax Agency, such as the Mercantile Registry, Income Statement, etc.
On the other hand,
by filling out an application form together with the Declaration of registration as self-employed and an agreement of wills where the ownership of the company is stated.
Utilities of the Tax Identification Number
As we have seen throughout this blog, the NIF is a necessary document to carry out administrative procedures in Spain.
A clear example of this is when registering as a freelancer, activating a bank account, or obtaining a vehicle for your business.
When formalizing this type of procedure and many other “day-to-day” procedures, you must provide your Tax Identification Number or, if you are a foreigner, your NIE.
Without a doubt, the Tax Identification Number is an important document for self-employed workers in Spain that often generates confusion. This little guide will help you to have the concepts a little clearer.
Finally, at Entre Trámites we offer various management, advisory and support services in bureaucratic and fiscal processes for the self-employed and SMEs.
Contact us! You can go to the contact form and leave your information so that we can call you, schedule a free consultation with us or write to our WhatsApp.
