In Spain you can not do so much without applying for an NIE number. Basically all foreigners residing or economically dependent in Spain require it, either to buy a house, a piece of property, a car, even to places you go for getting applications for other licenses. NIE number answers all fiscal and legal issues as it is a necessity for every fiscal transaction in Spain, except for those who works part time for a few months and get to be paid on the counter. It is the one thing you need in dealing with taxes.

An NIE number known in Spanish as the “Número de Identificación de Extranjero” and in English as Identification Number for Foreigners, is a tax identification number in Spain.

Every individual responsible to pay taxes in Spain or to do with the Spanish Tax Authorities are assigned a tax identification number. It is also required for formal registration and administrative procedures carried out in Spain, may it be for business or leisure purposes. NIE number allows you to pay your annual taxes or register your property legally, as this is issued for the purpose of ensuring all resident and non-resident pay their taxes dutifully. You primarily use this number everywhere in Spain; if you want to buy cars, boats, open a bank account, buy or sell properties, start a business, apply for loans, mortgages, credit cards, Spanish driving license and so on and so forth. Even when you register for social services or arrange for social security benefits, NIE number is always indicated.

The NIE Number is issued by the National Police of Spain and in accordance to their laws. This numbers are used to track an individual's financial and official activities in Spain. And any financial transactions outside the bounds of legalities are liable to incur large fines depending on the extent. Except for the issue of black market, that is a different kind of legal punishment altogether.

Now deciding on the aspect of applying for an NIE, the usual thing to do is to go to your designated police station, fill out an NIE form then submit it with your other requirements which differs really depending on your reason for filing. But if you are in your country and wants to file for an NIE number for a valid reason, then you can do it via a Spanish Consulate with the presence of the consular official. You can also do it via authorization of a third party to do it on your behalf and proceed to follow the required steps for it to be recognized by the Spanish government although the latter two requires you to pay for more than the usual in procuring an NIE number. Then you had to wait for 2-3 weeks and some even months depending on the way you prefer to acquire your NIE number.

The bottom line here is that all fiscal and legal aspects of your stay temporary or in residence are always taken cared of together with your NIE number. In short NIE number answers all fiscal and legal aspects in Spain.