As an entrepreneur, if you wish to establish a business in Spain or conduct legal or financial activities, it is crucial to obtain the proper tax identification number. The two most frequently used terms are CIF and NIF. Both are tax identification-related, but have different purposes and knowing the difference is essential to meeting the requirements of the Spanish authorities.
In this article, we will clarify the differences between CIF and NIF in Spain, their applications, qualifications, and how to know which tax identification number is required.
What is a CIF number in Spain?
CIF number (Certificado de Identificación Fiscal) is a tax identification number in Spain, which is obtained by companies or legal entities in Spain. A CIF number is used for opening a bank account, filing taxes, issuing invoices, and other taxation purposes.
CIF number is an 8-digit number in which the first digit indicates the type of business structure or legal entity. The next two digits specify the geographical region of Spain where your company is incorporated. The next five digits are a unique number.
Note: The Tax Agency of Spain (Agencia Tributaria) officially phased out the CIF in 2008 and merged it with the NIF system for legal entities. Since then, all new companies are allotted a NIF, not a CIF; the term is still used in the day-to-day business, banking and invoicing environment.
Read More: VAT registration in Spain
What are the requirements to obtain a CIF number in Spain
Before obtaining a CIF number in Spain, you need to fulfil the specific requirements:
- Application submission to the Commercial Registry
- Company incorporation documents
- Incorporation deed
- Identity card or passport of the representative
- Form 036 or 037
- Company’s information (like company name, registered office address, nationality, shareholders or directors, funds, etc.)
What is a NIF number in Spain?
NIF number (Número de Identificación Fiscal) is a tax identification number in Spain, which is assigned to individuals or legal entities for carrying out the legal, administrative or financial activities in Spain.The
NIF number acts as a unique identifier for the Spanish Tax Agency and other legal entities.
For residents, the NIF number is the same as the DNI number, which follows the format:
- Structure: 8 digits + 1 letter.
- Example: 12345678Z.
- Explanation: The 8 digits are a unique identifier, and the letter is a checksum character calculated based on the digits.
For non-residents, the NIF is the same as the NIE (Número de Identificación de Extranjero), with the following structure:
- Structure: 1 letter + 7 digits + 1 letter.
- Example: X1234567L or Y1234567M.
- Explanation: The initial letter (X, Y, or Z) indicates the series of the NIE. The 7 digits are a unique identifier, and the final letter is a checksum.
What are the requirements to obtain a NIF number in Spain?
Before obtaining a CIF number in Spain, you need to fulfil the specific requirements:
- Identity card (Spanish DNI) or valid passport
- Complete application (Form EX-15)
- Incorporation deed
- Residence proof
- Company’s information (like company name, registered office address, nationality, shareholders or directors, funds, etc.)
What is the difference between the CIF and NIF in Spain?
In Spain, CIF (Certificado de Identificación Fiscal) was the former corporate tax ID for corporations and legal entities. NIF (Número de Identificación Fiscal) is the current and unified tax ID assigned to any individual or legal entity in Spain. Spain has officially replaced CIF with NIF for every company since 2008, but CIF is still commonly used in business, banking, and common parlance when talking about a company’s NIF.
In short, if you are a Spanish company trying to incorporate in Spain right now, you will be getting a NIF, although they still use the name CIF.
| Aspect | CIF (Historical) | NIF (Current) |
|---|---|---|
| Definition | The former tax identification number used for companies and legal entities in Spain. | The official tax identification number used for both individuals and legal entities in Spain. |
| Status Today | Replaced by NIF for legal entities in 2008, the term “CIF” is still widely used informally | Official tax identification number used today |
| Who It Applies To | Companies and legal entities only | Individuals and legal entities |
| Structure | 1 letter + 7 digits + 1 control character | Individuals: 8 digits + 1 letter; Foreign residents (NIE): 1 letter + 7 digits + 1 letter; Companies: same format as the former CIF |
| Primary Use | Company taxation, VAT registration, invoicing, and banking | Personal and corporate taxation, VAT, invoicing, banking, and legal transactions |
| Assignment | Applied for after company incorporation | Spanish nationals: assigned through DNI; Foreign residents: assigned through NIE; Companies: assigned upon incorporation |
| Issuing Authority | Agencia Tributaria (Spanish Tax Agency) | Agencia Tributaria (Spanish Tax Agency) |
| Example | A1234567B | 12345678Z (individual), X1234567L (foreign resident), A1234567B (company) |
How to Find Your Tax Identification Number (NIF) in Spain?
A Tax Identification Number (NIF) is included on the following official documents, based on your status in Spain:
- Spanish citizens: Your NIF will be the same as your DNI (National Identity Document) and will be listed on your identity card.
- Foreign residents: Your NIF is the same as your NIE (Foreign Identification Number), which is given on your NIE certificate/foreign resident card.
- Companies and legal entities: The company NIF appears in the tax registration certificate, company incorporation documents, VAT registration certificate, invoices, and official correspondence provided by the Spanish Tax Agency (Agencia Tributaria).
- If you cannot locate your NIF: You may obtain it from the Spanish Tax Agency or ask your legal representative or tax advisor to help you.
It is very important to have your NIF at hand for tax filing, opening a bank account, business registration, issuing invoices, and any other legal or financial activity in Spain.
Who Requires a Tax Identification Number in Spain?
In Spain, any person who is engaged in official, financial or tax-related transactions must have a Tax Identification Number. Spanish citizens use their Documento Nacional de Identidad in place of a Tax Identification Number, and foreign citizens need to acquire an NIE. In order to work, open up a business, purchase or sell property, open up a bank account and pay taxes, a TIN is required.
Non-residents must have a Tax Identification Number in case they are earning or have assets in Spain. Freelancers, companies, and self-employed individuals need a NIF to be registered and be able to issue invoices and comply with the requirements of the taxation system in Spain.
Conclusion
It is significant to know the difference between CIF and NIF in Spain for a person who wants to live, work, invest, and conduct business in the country. CIF (now issued as an NIF for taxation of legal persons) is primarily used by companies for taxation, VAT, invoicing, and banking, and NIF is used by individuals, freelancers, employers, and businesses in general. It is required to have the right tax number in order to comply with Spanish laws.
OnDemand International offers professional help with CIF or NIF registration, VAT registration, and company formation, taking care of the paperwork and the process, and letting you work on your business with the confidence that you will achieve success.
FAQ’s
What is a CIF number in Spain?
A CIF (Certificado de Identificación Fiscal) is a tax identification number used by companies and legal entities in Spain for taxation, invoicing, VAT, and banking purposes.
Is CIF still used in Spain?
NIF has been used to replace CIF in legal entities, yet the term CIF is popular in business and in common searches.
Who needs a CIF number in Spain?
Any company, association, or legal entity operating in Spain requires a CIF/NIF to make tax payments, open bank accounts, issue invoices, and apply for VAT.
What is the difference between CIF and NIF?
CIF was used only for companies, while NIF applies to both individuals and legal entities. Today, companies also use a NIF instead of CIF.
Who needs a NIF number in Spain?
Spanish citizens, foreign residents, non-residents with income or property in Spain, freelancers, employees, employers, and companies all need a NIF.
Is a NIF required to open a bank account in Spain?
Yes. Spanish bank accounts require a valid NIF (or NIE in the case of foreigners) in order to open an account.