Every person requires a fiscal number. This is needed to buy a house, a car, start a business, have a contract of employment or any other activity involving taxes. There are three types of fiscal number, but they all serve the same purpose.
- CIF - This is a fiscal number for a limited company or other organisation
- NIF - This is a fiscal number for a Spanish person
- NIE - This is a fiscal number for foreigners
The first thing you should do on arriving in Spain, whether looking for a holiday home or coming to live here, is apply for an NIE. We can arrange this for you and will accompany you to the Police Station. It has no tax implications at all. It does not mean you are resident and does not affect your UK tax status.
If you are going to live in Spain a Certificado de Residencia will be needed. You are supposed to apply for this certificate within three months of coming to live in Spain.
Once you have the certificate you can apply for a residents mortgage, which means a lower deposit and rate of interest than for a non-resident.
Resident or non-resident?
We can advise on and calculate the tax implications of becoming a Spanish tax resident. There are four taxes to consider: Income, Capital Gains, Wealth and Inheritance taxes and advantages with one tax must be set against disadvantages on another.
If living here you should register at the town hall. This helps by providing proof of your address for schools, medical centres, buying a car etc. This registration is known as Empadronamiento.