Administrative simplification

• The Tax Agency and the Ministry of Foreign Affairs sign an agreement to speed up the assignment of the Tax Identification Number to non-residents without having to go to an AEAT office

• The measure, which represents a further step in the implementation of electronic administration abroad, will begin with a pilot test in eight consular offices located in countries with investment potential and extensive economic and financial ties with Spain.

October 15, 2013.

The State Tax Administration Agency (AEAT) and the Ministry of Foreign Affairs and Cooperation have today signed a management agreement under which Spanish Consular Offices abroad will be able to process the electronic assignment of the Tax Identification Number (NIF) to those citizens and companies not resident in Spain who so request. This new service, which will have a first phase of pilot testing in eight consulates and is expected to be extended to other consular offices in mid-2014, will allow non-residents to obtain their NIF quickly and easily without having to travel to, or send a representative to, an AEAT office.

The agreement, signed today by the Secretary of State for Finance, Miguel Ferre, and the Undersecretary of the Ministry of Foreign Affairs and Cooperation, Rafael Mendivil, will benefit non-residents who intend to carry out a tax-related transaction in Spain, a situation in which it is mandatory to use and provide a Spanish NIF.

Specifically, the streamlining measure affects applicants for NIF type 'L' (Spanish residents abroad who are not required to have a national identity document), 'M' (natural persons without Spanish nationality who, temporarily or permanently, do not have a foreign identity number) and 'N' (non-resident legal persons and entities, without a permanent establishment in Spain).

The provision of this telematic service in consulates, which is part of the group of simplification measures to be implemented by the Commission for the Reform of Public Administration (CORA), will entail advantages for non-residents in terms of convenience and savings compared to the alternative of face-to-face processing in Spain, thus favouring the attraction of foreign investment in Spain.

In the first nine months of 2013, more than 15,100 registrations of tax identification numbers of type 'L', 'M' and 'N', the NIFs subject to the new system, were processed. Of these, just over 1,300 are non-resident Spanish citizens, 2,000 are foreigners and more than 11,800 are foreign legal entities and organisations.

The agreement is part of the programme of reforms to the Public Administrations, with regard to the elimination of administrative obstacles and the simplification of the relationship between individuals and companies with the General State Administration.

 

Pilot tests and procedure

From this year until 1 July 2014, pilot tests of the new system will be carried out at the consulates in Amsterdam, Brussels, Dusseldorf, Frankfurt, Lyon, Naples, Porto and Washington; All of them located in countries with investment potential and extensive economic and financial ties with Spain. The extension of the service to a larger number of offices will be evaluated in the middle of next year, subject to prior agreement between the Ministry of Foreign Affairs and the Tax Agency.

The fully electronic processing procedure is designed to simplify as much as possible the documentation that non-residents must provide. In this regard, translations or legalizations will not be required, unless strictly necessary.

Initially, the applicant or his/her representative will go to the corresponding Consular Office providing the necessary data and documentation. The consulate will then fill out an electronic form that will be automatically sent to the AEAT, which will also immediately return proof of obtaining the NIF.

After obtaining the identification number and having a valid electronic signature, the non-resident citizen or company can declare and pay the taxes and fees that correspond to Spain from their country of origin, accessing the Electronic Office of the Tax Agency online.

The management of the application and assignment of the NIF in the Consular Offices of Spain highlights two of the essential aspects of consular work: to be a bridgehead for the Spanish Administration abroad, giving non-residents access to administrative services, and to promote business with Spain.