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How to operate in Spain with just a Tax Identification Number (TIN)

Posted on by Paul Urrutia
How to operate in Spain with a non-resident CIFDid you know that you can start operating with your business in Spain in only a few weeks? You don’t need to create a commercial company, you just need to obtain a non-resident NIF (Tax Identification Number). In this post we will tell you what steps to follow in order to get it.

Which forms must be submitted in order to apply for a non-resident NIF?

Any individual or legal entity that wants to do business in the territory of application of Spanish VAT must apply for a non-resident NIF. It is requested by the form 036, also called “Register of business persons, professionals and withholders – Register declaration for registration, modification and cancellation and simplified register declaration”.In the event that the individual requesting the NIF number does not have a tax identification number assigned by the Tax Administration, he/she must apply for it by filing the form 030 “Tax register of parties liable for tax payments – Declaration of registration, change of address and/or variation in personal data in the tax register.“.Both forms 036 and 030 can be found on the website of the Spanish Tax Agency: www.agenciatributaria.es.

What documentation is necessary to apply for the NIF of foreign legal entities?

In the case of foreign entities wishing to apply for the NIF, in addition to the forms we have seen, the following documents must be provided:

  • Document that accredits that the company in the country of origin exists.

The document can be the deed of incorporation or the bylaws registered in an official registry. A certificate from a notary, a registry or a tax authority proving the existence of the company can also be submitted.

  • Photocopy of the representative’s tax identification number.

The person signing the application form for the tax identification number on behalf of the company must attach a photocopy of the tax identification number issued by the Spanish administration.

  • Photocopy of the document accrediting sufficient power of attorney.

In addition to all of the above, it must be demonstrated that the person submitting the documentation and the application has sufficient power of attorney to do so. This power of attorney may already be included in the document proving the existence of the company in the foreign country.The documents we have mentioned above must be legalized with the Hague Apostille and translated by an official translator or through the Spanish Embassy or Consulate.

What steps must the foreign company follow in order to obtain a NIF?

The steps to obtain a non-resident NIF so that a foreign company can do business in Spain are simple:
  1. Write a power of attorney in favor of LEIALTA. The power of attorney is a public document that is granted before a Notary and allows LEIALTA to act on behalf of the foreign company in order to obtain the CIF. For the power of attorney to be valid, it must:
    1. Be granted by the administrative body of the foreign company (board of directors, sole administrator or joint and several or joint administrators).
    2. Include all the necessary powers so that all the steps to obtain the non-resident CIF and the electronic certificate can be carried out.
    3. Appoint a LEIALTA lawyer as the fiscal representative of the company in Spain. The fiscal representative must have fiscal residence in Spain, which means that he/she must live in Spain for at least 183 days a year.
    4. Incorporate the following data: name of the company, address, identification of the person signing, position held and date of appointment, identification of the attorney-in-fact (in this case, a LEIALTA partner) and definition of the powers granted depending on the service requested.
  2. Obtain the document proving the existence of the company in the country of origin.
  3. Include in the documents the Hague Apostille and send them to LEIALTA’s offices in Spain.
  4. Have all the documents translated by an official translator.
  5. Present the form 036 together with the documentation and obtain the CIF number.
If the foreign company that has obtained the CIF wishes to hire employees in Spain, it must also be registered in Social Security.

What taxes will the non-resident company have to pay in Spain?

The foreign company doing business in Spain through a non-resident CIF will not have to file and pay direct taxes such as the Corporate Income Tax (IS), since it is considered that it does not have a permanent physical place.However, it will pay indirect taxes such as the Value Added Tax (VAT). VAT is declared monthly, quarterly (in the months of April, July, October and January) or annually (in January of each year a summary is presented).In short, if you need to operate in Spain in a simple way, obtaining a non-resident CIF can be the solution. You will be able to start doing business in Spain soon and without having to comply with the tax, labor or mercantile obligations that you would have if you created a branch or a subsidiary. 

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Paul Urrutia

Paul Urrutia is a founding partner of Leialta. He is a tax lawyer and expert in creating international companies in Spain and global tax management.

16 thoughts on “How to operate in Spain with just a Tax Identification Number (TIN)”

    • Paul Urrutia says:

      Hi Samuel,

      As you do not have the CIF operational, you cannot carry out procedures such as:

      o Making entries in the public register.
      o Refraining the notary from authorizing any public instrument relating to declarations of intent, legal acts involving consent, contracts, and legal transactions of any kind, as well as prohibiting access to any public registry, including those of an administrative nature, unless the tax identification number is reinstated.
      o The registration certificates of the entity holding the revoked number will state that it has been withdrawn.
      o Make debits and credits to accounts or deposits opened in credit institutions.
      o Obtain a certificate stating that they are current with their tax obligations.
      o Deregistration from the Register of Intra-Community Operators (ROI) and the Monthly Return Register (REDEME).

      Best regards,

      Paul

      Reply
    • Paul Urrutia says:

      Dear tom,

      Logically, we must understand that yes. It would not make sense for the tax administration to require taxpayers to provide the documentation that proves the economic activity that the company will carry out to reinstate a revoked NIF, and on the other hand, it would not be allowed to continue carrying out economic activities.

      However, with its revoked NIF, the company will encounter “operational problems” if it has to file self-assessments, returns, and documentation. It must also do so electronically, and if the NIF and the FNMT digital certificate are revoked, it will not be able to comply with all these formalities. Best regards

      Reply
  3. Justin says:

    Hello, is there a deadline for applying for a NIF for non-residents? Do I have to obtain it before starting the procedure? Thanks!

    Reply
    • Paul Urrutia says:

      Hi Justin, the time to apply for the NIF when setting up a company is within the month following the date of incorporation, but always before carrying out any transaction, starting any economic activity, or hiring personnel. For example, if you create a company on 1 April, you have until 1 May to complete this procedure.Best regards.

      Reply
    • Paul Urrutia says:

      Hello James,

      To obtain the Community VAT number you must apply for it using the census declaration 036/037 with a registration request. The assignment of the EU VAT number means that you will be included in the VIES census. The Tax Administration must resolve the application within three months, and if after these three months, you have not obtained it, this means that the application has been rejected.

      It´s important to remember that obtaining the Community VAT number means that you are automatically included in the European VIES census and the Register of Intra-Community Operators, which is an essential requirement for the operation to be exempt from VAT.

      Best regards

      Reply
  5. James says:

    Hello,

    I´m currently working in Germany, but I am moving to Spain soon, and my company has allowed me to continue teleworking for them. But they only have a NIF for non-residents in Spain (they don’t have a subsidiary or anything like that). Under these conditions, how could they register me in Spain? Best regards

    Reply
    • Paul Urrutia says:

      Dear James,

      With a non-resident VAT number, hiring a team member and complying with Social Security and quarterly withholding tax obligations is possible. It is the easiest and simplest structure for engaging a remote worker.

      You have to present a 036 registration form and register for team member withholdings and, with the electronic certificate of said CIF register it with Social Security. Then you can finally write the employment contract with this body.

      Best regards

      Reply
    • Paul Urrutia says:

      Dear Hailey

      It is possible if you have a Spanish CIF from the LLC entity. You would have to arrange with the bank the documentation they will ask you for to open a bank account.

      Best regards.

      Reply
    • Paul Urrutia says:

      Dear Sophie, it can take about 15 days. Spain is a somewhat bureaucratic, so you must be well advised along the way. Best regards.

      Reply
  8. Mike says:

    Hi, I have an LLC, but I want to have the warehouse or stock in Spain (my home) to save the cost of transport, etc., because most of my customers are from Spain and the EU. Is there any way to send orders from Spain having an LLC USA (to avoid the high cost of the fee of being self-employed)? Best regards

    Reply
    • Paul Urrutia says:

      Dear Mike,

      Perhaps you can obtain a non-resident CIF from the US LLC entity in Spain and operate in Spain this way. In this case, paying autonomous tax is unnecessary as you do not create a company in Spain.
      You must be careful not to be considered a Permanent Establishment due to your activity and structure in Spain (stipulated in art 13 of the Non-Resident Income Tax). Best regards

      Reply

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