If you are an entrepreneur planning to set up a business in Spain or conduct any legal or financial transactions in Spain, you need to have a tax identification number. In Spain, there are two types of tax identification numbers called CIF number and NIF Number. Both the numbers have their own uses. In this article, we will provide you with the information regarding what are the differences and uses of CIF number and NIF number.
What is a CIF number in Spain?
CIF number (Certificado de Identificación Fiscal) is a tax identification number in Spain which is obtained by the companies or legal entities in Spain. CIF number is used for opening a bank account, filing taxes, invoices submission and other taxation purposes.
CIF number is an 8 digit number in which the first digit indicates the types of business structure or legal entity. Next two digits specify the geographical region of Spain where your company is incorporated. Next five digits are a unique number.
Note: In Spain, the CIF number is also accounted as a VAT number.
Read More: VAT registration in Spain
What are the requirement to obtain a CIF number in Spain
Before obtaining a CIF number in Spain, you need to fulfill 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.
NIF number acts as an unique identifier for Spanish Tax Agency and other legal entities.
For residents, NIF number is same as 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 fulfill 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 are the difference between CIF number and NIF number in Spain
| Aspect | CIF (Código de Identificación Fiscal) | NIF (Número de Identificación Fiscal) |
| Definition | Tax identification number for legal entities such as companies and organizations. | Tax identification number for individuals (both Spanish nationals and foreign residents) and legal entities. |
| Primary Use | Used primarily for business-related tax identification and transactions. | Used for all tax-related purposes, including both personal and business activities. |
| Assigned To | Legal entities such as companies (e.g., Sociedad Limitada, Sociedad Anónima), associations, and organizations. | Individuals (Spanish nationals, foreign residents) and legal entities. |
| Structure | 1 letter (denoting entity type) + 7 digits + 1 checksum letter (e.g., A1234567B). | For individuals: 8 digits + 1 letter (e.g., 12345678Z). For foreign residents: 1 letter + 7 digits + 1 letter (e.g., X1234567L). For legal entities: 1 letter + 7 digits + 1 letter (same as CIF). |
| Automatic Assignment | Not automatically assigned; must be applied for after company formation. | For Spanish nationals: Automatically assigned with DNI. For foreign residents: Assigned as NIE. For legal entities: Same as CIF. |
| Entities Covered | Limited to legal entities (companies, organizations, etc.). | Covers both individuals (including foreign residents) and legal entities. |
| Legal Documentation Requirement | Requires company formation documents like deed of incorporation, articles of association, etc. | For individuals: Requires personal identification documents (e.g., passport, NIE). For legal entities: Requires similar documents as CIF. |
| Relevance for VAT | Primarily associated with VAT (Value Added Tax) and other business taxes. | Associated with a wide range of taxes, including personal income tax, corporate tax, VAT, etc. |
| Issuing Authority | Issued by the Spanish Tax Agency (Agencia Tributaria) upon company registration. | Issued by the Spanish Tax Agency (Agencia Tributaria) or through NIE for foreign residents. |
| Examples | A1234567B, B7654321C | 12345678Z (for individuals), X1234567L (for foreign residents), A1234567B (for companies). |
Who requires a tax identification number in Spain?
In Spain, having a Tax Identification Number (NIF – Número de Identificación Fiscal) is essential for a wide range of individuals and entities. Spanish nationals automatically receive a NIF with their DNI (Documento Nacional de Identidad), which they need for everyday activities like opening a bank account, signing contracts, paying taxes, and even accessing social services. Even minors and dependents might need a NIF if they’re involved in financial matters, such as inheriting property or being included in a tax return.
For foreign residents living in Spain, the NIF takes the form of a NIE (Número de Identificación de Extranjero). This number is crucial for getting a job, buying a home, filing taxes, and accessing social benefits. Even if you don’t live in Spain but have financial interests there—like owning property, running a business, or earning income—you’ll need a NIF to meet your tax obligations.
Companies and other legal entities, whether Spanish or branches of foreign businesses, must have a NIF to function legally in Spain. This includes everything from registering for taxes and issuing invoices to complying with financial regulations. Freelancers, known as autónomos, also need a NIF to handle their VAT registration, billing, and income tax filings.
Employers, whether they’re individuals or businesses, need a NIF to hire staff, manage payroll taxes, and contribute to social security. Employees, too, must have a NIF for things like tax withholding, social security registration, and filing their annual tax returns. Finally, whether you’re a Spanish resident or not, if you own property in Spain, you’ll need a NIF for any transactions related to that property, whether you’re buying, selling, or simply managing it.
