What Documentation Does a Foreign Natural Person Need to Incorporate a Limited Company?

If you’re a foreigner and have made the decision to create a limited company (sociedad limitada) in Spain as a natural person, you need to be aware of the documentation you will require to correctly complete this procedure.

In this regard, the applicable regulations in Spain establish that individuals and legal entities not resident in Spain who wish to carry out operations of a fiscal nature or with tax implications must have a tax identification number, which will be a NIF in the case of legal persons or a NIE in the case of natural persons.

What is a NIE?

With regard to foreigners with financial interests in Spain, the NIE is a personal document that allows them to complete any formalities that require tax identification with the Treasury.

It is a personal, sequential, exclusive and unique document and can be issued on a permanent or temporary basis.

What types of NIE are there and how do you apply for them?

As mentioned in the previous section, the NIE can be separated into two categories:

• Permanent NIE. This is granted to foreign citizens who will be residing in Spain for some time, such as those who plan to study or be engaged in the remunerated activity. It is necessary when the period of residence is longer than three months and it must be applied for within 90 days of the person’s arrival in Spain. The application process for this is as follows:
  • Make an appointment by phone or online through the following link.
  • Go to this appointment to obtain the NIE and the certificate of alien registration. For non-EU citizens, the NIE may take between seven and ten days to be issued.
• Temporary NIE. This is valid for three months and must be requested by any foreigners planning on living in Spain for a short period of time. For example, this applies to foreigners who inherit a property in Spain and visit for a few days to sign the deed of inheritance acceptance. The procedure for applying for this NIE is the same as in the previous case, but here, the application can also be presented to the Spanish Consulate General in the area in which the applicant resides. The application is sent to the General Police Station for Foreigners and Borders (Comisaría General de Extranjería y Fronteras) in Madrid and the Central Register of Foreigners (Registro Central de Extranjeros) then allocates the NIE and issues a certificate that is valid for three months.

It is important to clarify that the NIE is not a residence permit; it is simply an identification number required for the incidences we have described.

You can apply for a NIE in person or through a representative in Spain. In such a case, the power of attorney must be granted to the representative so they can process the application. This power of attorney must also have an Apostille of the Hague.

When is the NIE required for natural persons?

As stated earlier, a NIE is required for natural and legal persons to complete procedures of a fiscal nature or relevance. From a business point of view, the following procedures are notable:

• In the event that said person is a partner or director of a Spanish company.
• When a deed of sale of a property is issued or refers to a right in rem regarding a property.
• To make any type of financial transaction in Spain (opening a bank account etc.).
• When administrative forms from the Tax Agency have to be completed.

In addition to the above, for a foreigner to incorporate a company in Spain and become a partner in said company, it will be necessary for them to provide a Foreign Investment Declaration.