NIE, NIF and TIE are different concepts that are frequently confused. Understanding their purpose is essential for anyone who intends to live, work, invest or establish a company in Spain.

What is an NIE

The Foreigner Identity Number identifies a foreign individual in dealings connected with Spain. It may be used to establish or invest in a company, purchase property, sign documents before a notary, complete tax procedures and enter into contracts. It is only an identification number and does not itself grant residence or permission to work.

What is an NIF

The Tax Identification Number is used in dealings with the Spanish tax authorities. For a foreign individual, the NIE normally serves as their tax identification number. Spanish companies and certain foreign entities must obtain their own NIF.

• A foreign individual obtains an NIE.
• A Spanish limited company obtains its own NIF.
• A foreign company carrying out certain transactions in Spain may need a Spanish NIF.

What is a TIE

The Foreigner Identity Card is the physical card that proves the legal residence status of a non-EU citizen in Spain. It normally displays the holder’s NIE number, photograph, type of authorisation and validity period. It is obtained after the corresponding residence authorisation has been granted.

The main differences

The NIE identifies a foreign person. The NIF identifies a person or entity for tax purposes. The TIE is the physical card evidencing a foreign citizen’s residence status.

A person may have an NIE without a TIE. This commonly happens when someone needs an identification number to buy property or establish a company but does not intend to reside in Spain.

What does a foreign founder need

• Foreign shareholders and directors will normally need an NIE.
• The newly incorporated company will need its own NIF.
• A foreign corporate shareholder may also need a Spanish NIF.
• A TIE is relevant only when the individual has a Spanish residence authorisation that requires the card.

How Nomadis Legal can help

At Nomadis Legal, we identify the documents required for each shareholder, director and foreign company and coordinate the relevant applications. Contact us before starting the process to avoid unnecessary or incorrect filings.

This article is for general information only. Legal, administrative and tax requirements may change and should be reviewed for each individual case.