How to obtain and use a non-resident NIF in Spain

For foreign companies planning to operate in Spain, obtaining a non-resident NIF is the first essential step. This number, known as the Tax Identification Number (NIF), allows businesses to meet their tax obligations in the country without the need to establish a Spanish company. If your business intends to carry out VAT-subject activities, the NIF must also be registered in the Register of Intra-Community Operators (ROI), making it a VAT-NIF for intra-community transactions.

Due to its significance, our monthly alert breaks down everything you need to know about this topic.

What is the non-resident NIF?

The non-resident NIF is a number issued by the Spanish Tax Agency to foreign individuals or entities wishing to engage in economic activities within Spain. This identifier is mandatory for issuing invoices, filing tax returns, or conducting business transactions in the country.

For activities involving VAT, such as intra-community operations, the NIF must be registered as a VAT-NIF. This means the NIF is formatted as the assigned number preceded by the prefix “ES.” For example, if the assigned NIF is B12345678, the VAT-NIF will be ESB12345678.

Requirements for obtaining a non-resident NIF

Any foreign individual or entity wishing to operate in Spain must request this number by completing Form 036 (Declaration of registration, modification, and deregistration in the census of entrepreneurs, professionals, and withholders). If the applicant does not yet have a fiscal number, they must also submit Form 030 (Census of taxpayers, change of tax address, and/or variation of personal data).

The required documentation to obtain a non-resident NIF includes:

1. Certification of the company’s existence in its country of origin: This may be through incorporation documents, bylaws registered in an official registry, a notarial certificate, or a document issued by the tax authority in the country of origin.
2. Copy of the representative’s NIF: The person signing Form 036 on behalf of the foreign entity must provide a copy of their own tax identification number in Spain.
3. Proof of authorisation: Evidence must be provided that the person requesting the NIF is authorised to do so. This may be included in the document certifying the company’s existence or submitted as a separate document.

Additionally, all documents must:

• Be legalised with an Apostille of The Hague.
• Be translated into Spanish by a sworn translator or the Spanish consulate in the country of origin.

Steps to obtain a non-resident NIF

1. Issue a notarised power of attorney: The representative of the foreign company must grant a power of attorney to a manager or lawyer in Spain to handle the process on their behalf. This document must include:
   • Authority to manage the NIF application.
   • Complete identification of the representative and the attorney.
   • A clear purpose for the powers granted.
2. Prepare the required documentation: Certificates, powers of attorney, and forms must be legalised and translated before being sent to Spain.
3. Submit the application to the Tax Agency: Once the documentation is complete, it must be submitted alongside Form 036 to the relevant tax administration office.
4. Register in the ROI (if applicable): If the company will carry out VAT-subject activities within the EU, it must register in the Register of Intra-Community Operators to obtain the VAT-NIF.

Tax obligations for non-residents with a NIF

Foreign companies with a non-resident NIF are not subject to Corporate Tax, as they are not considered fiscal residents in Spain. However, they must comply with the following tax obligations:

1. VAT (Value Added Tax):
   • Declare and pay VAT for operations conducted within Spain.
   • VAT returns may be submitted monthly or quarterly, depending on the volume of operations, using the relevant forms (e.g., Form 303 for periodic returns and Form 390 for the annual summary).
2. Withholdings and advance payments:
   • If hiring employees in Spain or making payments subject to withholding, these obligations must be met using specific forms.
3. Form 347:
   • Annual informative declaration of transactions with third parties if they exceed €3,005.06 per year.

Advantages of a non-resident NIF

 Opting for a non-resident NIF offers foreign companies several benefits:

• Quick start of activities: Without the need to establish a company, businesses can operate in Spain within weeks.
• Reduced administrative burden: They are not required to fulfil the full fiscal and accounting obligations of a resident entity.
• Operational flexibility: Ideal for temporary projects or companies testing the Spanish market before establishing a permanent presence.

At LEIALTA, we understand the complexities of complying with Spanish tax regulations. Our team of experts is ready to handle the entire process, providing the best advice to help you operate in Spain quickly and securely.