What is the NIF? Everything you need to know about this number.

The Tax Identification Number (Número de Identificación Fiscal, NIF) is so deeply rooted in our daily lives that, from a young age, we assume in one way or another that we know everything about it. But is that really the case? For example, do you know whether the NIF and the National Identity Document (Documento Nacional de Identidad, DNI) are exactly the same thing? Do you know how an NIF is assigned to legal entities? And what about the NIF of self-employed workers?

The NIF is the number that identifies individuals and legal entities in their dealings with the Spanish Tax Agency (AEAT).

For individuals, the NIF is the same as the number on their National Identity Document (DNI).

However, for foreign nationals resident in Spain, this number is the same as their Foreigner Identification Number (Número de Identificación de Extranjero, NIE).

For legal entities and other entities, the NIF has a special structure, which we will reveal below.

This number is essential for completing formalities with the tax authorities, and it also appears on the invoices of self-employed workers and companies. It is a key tool in managing taxpayers’ tax obligations.

Types of NIF

There are several types of NIF, depending on the nature of the taxpayer:

• NIF for Spanish nationals: it corresponds to the DNI number.

• NIF for resident foreign nationals: it is equivalent to the NIE number.

• NIF for legal entities: this is the tax identification number used by businesses and companies, and by any other entity that carries on a commercial activity or is subject to administrative obligations.

Structure of the document

The NIF follows a specific structure that allows it to be identified and verified:

• Individuals: it corresponds to the DNI (or NIE) number. It consists of eight digits and a check character.

• Legal entities: its structure varies depending on the type of entity. It begins with a letter related to the entity’s legal form, followed by seven digits and a check character.

What is your NIF?

For Spanish nationals, the NIF is their DNI number, a document that is mandatory for residents over the age of 14.
Foreign nationals resident in Spain use their NIE as their NIF.
In both cases, simply checking the code is enough to know what the NIF is.
What happens if an individual of foreign nationality does not have an NIE and is going to carry on an economic activity in Spain?
In this case, they must apply to the Spanish tax authorities for a specific NIF, which will be issued with the initial letter “M”.

NIF of legal entities

For legal entities, the NIF has a specific structure that varies depending on the type of entity.

The initial letter of a legal entity’s NIF corresponds to a specific type of entity, while the check digit varies depending on its nature.

And if you have ever wondered which legal form each letter corresponds to, here is a complete list:

A for public limited companies (S.A.).
B for limited liability companies (S.L.).
C for general partnerships (sociedades colectivas).
D for joint ownership arrangements (comunidades de bienes) and estates in abeyance (herencias yacentes).
F for cooperatives.
G for associations.
H for homeowners’ associations under the horizontal property regime (comunidades de propietarios en régimen de propiedad horizontal).
J for civil partnerships (sociedades civiles), with or without legal personality.
P for local authorities (corporaciones locales)
Q for public bodies.
S for bodies of the State Administration and of the Autonomous Communities (regions).
U for temporary business joint ventures (Uniones Temporales de Empresas).
V for other types not defined in the other codes.
N for foreign entities.
W for permanent establishments of entities not resident in Spain.

NIF application process for legal entities

To obtain the Tax Identification Number (NIF) of a legal entity, it is necessary to apply to the Tax Agency within the month following the date on which the entity was formed. This procedure is an essential requirement in the process of setting up a company.

This process includes submitting the name of the legal entity, identifying its legal representatives, and providing documentation such as the deed of incorporation and the certificate of registration with the Commercial Registry.

Can the Tax Agency revoke an NIF?

Yes, the Tax Identification Number (NIF) can be revoked for various reasons, mainly related to failure to comply with tax obligations or irregularities in tax identification.

The main grounds that may lead to revocation are the following:

• Incorrect data: if it is discovered that false data were provided when the NIF was obtained. The NIF may also be revoked if there are inconsistencies in the documentation submitted.

• Unlawful activities: if the NIF is used for unlawful activities, such as tax fraud or money laundering.

• Failure to comply with tax obligations: if the NIF holder repeatedly fails to comply with their tax obligations, for example by evading taxes or failing to file tax returns.

• Inactivity: if the NIF has not been used for a prolonged period and it is presumed that it is no longer needed.

• Dissolution of the entity: if the company or entity is dissolved or legally ceases to exist.

When an NIF is canceled, this is announced in the Official State Gazette (BOE), and from that moment on, the number will no longer be valid.