NIE Number Questions and Answers

What is Spain's NIE number?

The NIE number is, in Spanish, the "Numero Identificacion de Extranjeros", which is mostly referred to as the NIE (pronounced "near").  It is an ID number issued to all foreigners who enter into any kind of fiscal transactions in Spain.

Why does Spain issue NIE numbers?

Coming from somewhere like Britain which doesn't (after all) have national identity cards, the NIE concept seems a bit alien.  But Spain does have a national ID card system and the main form of identification for the locals in all official dealings is the DNI or Documento Nacional de Identidad. The NIE is just the foreigners' equivalent.

A passport used to be enough to identify someone for the purpose of contracts in Spain but since 2005 any party to a transaction has to present their NIE if they don't have a DNI.  This rule was brought in to ensure that anyone doing business of any kind in Spain is known to the authorities and thus traceable for tax purposes.

Why would I get a NIE number?

The NIE has become practically indispensable for anyone resident in Spain and is certainly necessary for non-residents who want to buy property indeed do any of the following:

- rent or buy property

- buy a car

- make any kind of tax declaratiion

- get a driving licence

- write a will or inherit assets

- connect utilities

- insure property

- get a loan, including a mortgage

- join social security

- open a resident bank account

Does it involve paying taxes?

Although the  whole purpose of NIEs is to keep tabs on the fiscal activities of foreigners in Spain, it does not automatically confer any tax obligations.  For example, as we have seen, anyone buying property in Spain needs a NIE.  It is also the case that owning a property in Spain requires the payment of certain taxes (see non resident Spanish tax guide) . But getting a NIE does not automatically put someone in the tax system.

Anyone wishing to keep up with their Spanish taxes will have to separately register with the Spanish tax office (Agencia Tributaria) either as resiedent or non resident taxpayers depending on their circumstances.  Naturally you will need the NIE before you can register in this way.

It is perfectly possible to get a NIE, buy a house and not hear anything from the Agencia Tributaria at all.  The obligation is on you to register and meet your tax obligations.  They will not send you a return to be filled in or issue a tax return just because you have a NIE.

The NIE does come into play when taxes go unpaid however.  As an example if you don't pay local taxes at the Town Hall (most commonly the IBI or SUMA - Spanish rates - or car tax which is collected locally) eventually the debt will be chased by the unpaid tax department, called the Recaudacion de deudas in each locality.  For example, this is Malaga's provincial department of unpaid taxes - PRP Malaga.  The authorities use the fact that everything is documented using the NIE so they can, for example, go to the national tax office (Agencia Tributaria) and get them to use their powers to get the unpaid taxes by seizing your assets including banks accounts and property.  Unpaid traffic fines can be chased in the same way.  Even tax authorities from other EU countries can ask the Spanish tax office to chase unpaid taxes within Spain using the NIE.

Who can get a NIE?

Any foreigner can apply for a NIE number, they don't have to be from the EU.  They are issued by the Ministry of the Interior, which has a page on their website dedicated to the NIE:

http://www.mir.es/SGACAVT/extranje/regimen_general/identificacion/nie.html

Google translate this and it will tell you how to apply and where.

Note that you normally have to apply in person and can no longer send an agent with power of attorney.  Anyone planning to spend more than 90 days in Spain will probably be told to get a residency certificate at the same time as their NIE (see Advoco's Residency guide) .  You may be asked to show proof of why you are asking for a NIE (e.g. if you need it to buy a house they may - but not always - ask to see a sale contract).

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