Any foreign person or professional that wants to establish or do some type of business in Spain must request the Tax Identification Number or NIF (Número de Identificación Fiscal in Spanish). It is mandatory to have this number for almost all economic transactions.
NIF for foreigners: When do you need it?
If the person who wishes to make a transaction in Spain is a person, not a company or other type of entity, they must request the tax identification number (NIE or Foreign Identification Number) at the Police.
It is needed when opening a business or acquiring an asset in Spain, such as the purchase of a property. This situation is known as Fiscal Reason.
What is the NIF used for?
The Tax Identification Number is mandatory to be able to invoice.
When carrying out commercial and business activities, people are required to have the NIF to invoice. Whenever a job or service is performed, the invoice corresponding to that transaction must appear the Tax Identification Number of the service provider.
Value Added Tax Registration.
There are two different modalities for those entrepreneurs who wish to trade any good or operate in Spanish territory according to the country’s current legislation:
• Permanent establishment in Spain: This is for those foreign companies who are operating in Spanish Territory and are subjected to VAT (Value Added Tax). They must apply for it at the tax office located near the address of the company.
• Not permanent establishment in Spain: those foreigners who do not count with an office in Spanish territory and are subjected to VAT must apply for it through their appointed tax representative (which is mandatory) at the nearest tax office where they intend to carry out the business in connection thereof.
In general, you must submit certain requirements if you wish to issue your VAT registration; however, the most important is a document stating the existence of the company or the person’s professional activity and the justification of such company or activity in Spanish territory. In this case you could submit the deed of incorporation of your company and/or the registration of it in the corresponding registration office.
Depending on the type of company you are willing to set up in Spain, you will have to apply or charge a different Tax rate.
Our attorneys count with years of experience dealing with VAT (Value Added Tax) registration process and tax calculation and declaration. We can help you to get all your documents and tax status ready when opening your business, keep up to date your tax payment before the Spanish Tax Office.
We offer different legal solutions and services in relation to the VAT registration. Our attorneys will represent your interest in the best possible way, based on the grounds of confidentiality and professionalism.