NIE stands for Número de Identificación de Extranjero. It is an identification number for foreigners and is issued to those who live, work, or invest here, who do not have the status of Spanish citizens.

Basically, it is an identification number assigned for legal purposes to foreigners who have dealings in Spain.

Keep in mind though that the NIE is not a fiscal residency identification; you can have a NIE and be a fiscal resident in another country.

A NIE is not the green residency document that EU residents in Spain get either. This Certificado de Registro de Ciudadano de la Unión contains the NIE number but it is not the NIE in itself as it has been wrongly called by many.

READ ALSO: 14 things you should know about Spain’s NIE number for foreigners

The TIE on the other hand stands for Tarjeta de Identidad de Extranjero (Foreigner Identity Card) and is the card that non-EU residents are given to prove they have residency in Spain.

To be eligible for a TIE card, you must have a visa authorisation to stay in Spain for a period of six months or longer (as well as British residents living in Spain before Brexit who’ve exchanged their green residence certificates for TIEs).

As well as your personal details such as name, date of birth and address, the TIE will include the type of residency you have – such as temporary or long-term residency and work, as well as your NIE number. It will also feature your photo.

The green certificate for EU residents in Spain is the equivalent of the TIE for non-EU residents.

WHAT YOU CAN DO WITH A NIE:

You can buy a property

Being issued with an NIE doesn’t mean that you’re resident in Spain, it simply means that you can carry out financial transactions. In fact, you’ll need a NIE to do any big financial transactions in Spain, such as buying a house. This will be what’s known as a non-resident’s NIE. It is needed by everyone who wants to own a second or holiday home in Spain.

You can buy a car
Similar to the case of buying a house above, you will also need your NIE to buy a car, even if you don’t live here. You will, however, still most likely need to rent or own property in Spain, as well as having a NIE if you want to purchase a vehicle. In fact, you need a NIE to buy many big-ticket items in Spain from cookers to washing machines.

READ ALSO – Reader question: Can I buy a car in Spain if I’m not a resident?

You can open a bank account

It’s possible to open up a Spanish bank account with your NIE, either as a non-resident, if you’re an EU citizen with a green residency card, or if you haven’t been issued your TIE yet. Many second-home owners in Spain may need to open a Spanish bank account to pay bills or to avoid high commission fees with a foreign card. There are several banks in Spain that will allow you to do this.

READ ALSO: How to open a bank account in Spain if you’re not a resident

You can pay your bills

You will need a NIE in order to pay your bills in Spain, anything from electricity and water to gas. The provider will ask you for this number when you first register, so that means that even if you’re a non-resident but you’re renting a property temporarily and are in charge of paying the bills yourself, you will need one.

You can set up a business or company in Spain

Technically you can set up a business or a company in Spain with your NIE. Keep in mind though, if you intend to live in Spain to work on your business, you will also need a residency document – a green residency card if you’re from the EU and a TIE if you’re not.

You can pay taxes in Spain

Technically you pay taxes in Spain with your NIF Número de Identificación Fiscal or fiscal identification number, but this number is actually the same as your NIE, so you don’t need a separate one in order to pay taxes here. Your NIE will need to be on any forms presented on your behalf to the tax office, including the annual Declaración de la Renta or personal income tax return.

You can apply for your NIE from abroad

Technically you can apply for your NIE through a Spanish consulate abroad and do not actually need to travel here or wait until you arrive. Like in the example above, if you only want a NIE to buy a property then you can get it in your home country before you arrive to come and sort out the paperwork for your second home.

WHAT YOU CAN DO WITH YOUR TIE:

There are some situations in which just showing your NIE won’t be enough, and you’ll also need to present your physical TIE card and prove you are a resident here.

READ ALSO – GUIDE: How foreigners can apply for their TIE residency card in Spain

You can re-enter the country with your passport and your TIE

If you’re from a non-EU country but have residency in Spain it’s a good idea to present your TIE along with your passport each time you re-enter the country. The border guards may still stamp your passport to show each time you re-enter the EU, but TIE will prove that you have the right to enter and live in Spain, even if you’ve already spent more than 90 days in 180 in other EU countries.

You can prove your residency in Spain with your TIE

If you are ever stopped by the police or other authorities in Spain and asked to show identification, you can show your TIE in order to prove that you legally live here. It can also act as an official ID card because it shows your photo and personal details.

You can apply for a job with your TIE

If you’re a foreigner and want to get a job in Spain, you will need to show that you have permission to live and work here. For non-EU citizens, companies will ask for a copy of your TIE in order to prove this, before they can formally offer you the job.

You can only get your TIE once you move to Spain

Unlike the NIE, which you can apply for from abroad, you can only get the TIE in Spain. You must apply for it within 30 days of arrival in the country from a local police station or foreigners’ office. Although as a non-EU citizen, you will have been granted a visa to enter and live in Spain, you won’t legally be a resident until you get your TIE.

You can register for social security

Although you can initially register for social security with just your NIE, you will need to show your TIE to prove that you have residency in Spain and can legally apply for it. You need to register with social security in order to work or become self-employed in Spain and it enables you to access the public healthcare system as well as other benefits such as paying into the public pension scheme.