Spanish law states that all foreigners buying a property in Spain obtain an NIE prior to completion of their purchase; it is no longer acceptable to simply have a fiscal identity number (NIF). It is therefore advisable to apply for your NIE as soon as you are prepared to commit to purchasing a property in Spain. Too often clients will leave it to the last day before agreeing an offer; and since Spanish law now insists that applications be made in person rather than by a legally appointed third party (ie power of attorney to your legal representative), it is wise to allow time to make the application and avoid possible delay in the completion schedule.

Other motives for having the NIE include-

The setting up of utility connections for electricity, gas and telephone
To apply for a business permit
To make asset purchases over €3,000
To inherit Spanish assets
To apply for a Spanish driving licence
To deal with Spanish tax authorities
To register Spanish property with the land registry

In fact there are many other occasions when it may be requested; if you buy a vehicle, need a permit for fishing from the local authority, and so on.

Applying for an NIE
Applications are made, in person, at the Oficina de Extranjeros (Foreigners' Department) at your nearest Policía Nacional (National Police Headquarters). For the Costa Tropical this is in Motril; located in Calle Aguas del Hospital (Rona del Mediodia) just off the new ring road roundabout at the entrance to the town; in the direction to the port and after the "Al Campo" commercial centre. This new building is located on the corner of the next roundabout. Parking available. To make enquiries at the Foreign Section of the Comisaria you should call +34 958 834 908 (Spanish speaking only).
As of January 1, 2008 the Spanish government now makes a small administration charge for all applications. This amount must be paid via the local bank, before the application can be accepted; and costs 22.40 Euros (including the NIE and the certificate of non-resident). Note that while the NIE number remains valid for life, the certificate of non-resident is only valid for 3 months; and may need to be renewed prior to any property transaction before the notary office.

You need to complete and photocopy the application form; a pdf file of this form can be downloaded here at this link - http://www.mir.es/SGACAVT/modelos/extranjeria/modelos_extranje/ex_14.pdf

To assist you in completing the application below is a guide to help you…
Once completed you will need to take the original and a photocopy of the application, along with your passport (plus a photocopy) to the Foreigners section of the Comisario, whereby they will first give you a ticket and advise you to which bank you need to make payment for the NIE application. On you return you simply go the front of the queue with your payment receipt and the application is then stamped. The officer will then return a copy to you and ask you to collect the number at a later date – usually 4 or 5 working days later. When you, or your representative in Spain, do return you must take the copy of the form with you.
If you are unable to be in Spain to make the application then it is possible to apply for your NIE in your home country. However this can take several weeks as applications made must also be sent to Madrid for endorsement before being returned to the applicant. You will also need to give a Spanish contact address to where the original NIE will be sent – usually this should be your representative in Spain. Also, you may be asked to present a copy of the contract of sale and purchase as proof of the need for the NIE to be granted. UK residents should either of the following addresses for further information.

For residents in the North of the UK please make application to:-
The Spanish Consulate General
1 Brooks House
70 Spring Gardens
Manchester, M2 2BQ
Tel: 0161 236 1233

For residents in the South of the UK, Wales and Northern Ireland then to:-
The Spanish Consulate General
20 Draycott Place
London SW3 2RZ
Tel: 020 7589 8989

For residents of Scotland apply to:-
The Spanish Consulate General
63 North Castle Street
Edinburgh, EH2 3LJ
Tel: 0131 220 1843

Once you have your NIE document, then it is advisable to file the original in a safe place and make numerous photocopies for the authorities. Note too that it is your responsibility to advise the local Policía Nacional of any changes to your address, title or marital status.
As a guide to completing the application form for your NIE (Número de Identificación de Extranjero  - Foreigner Identification Number)  here are some guidelines to help you complete the boxes. After filling in your passport number, then complete the remaining entries as follows:-
The form and its sections: a step by step guide to completing the NIE application. Please write in black ink and in capitals, do not write in any of the shaded areas.

Section 1 Datos Personales del Extranjero (Personal Details)

1er Apellido (Surname) 2er Apellido (2nd surname - if double barreled or leave blank)
Nombre (forename, first name)

Fecha de nacimiento (Date of Birth in the order - DD/MM/YYYY)

Lugar de nacimiento (Place of Birth)

Sexo (Gender) – circle around the appropriate box
ie  “H” for Male (Hombre) or “M” Female (Mujer)

Estado Civil (Marital Status) – circle around the appropriate box
ie “S” for Single (Soltero) “C” for Married (Casado) “V” for Widow (Vuida) “D” for Divorced (Divorciado) or “Sp” for Separated (Seperado)

País de nacimiento (Country of Birth)

País de nacionalidad (Nationality)

Nombre del padre (Father's Name)

Nombre de la madre (Mother's Name)

Domicilio en España (Address in Spain) eg Calle Puerta del Sol Nº 2

Localidad (Town/Village) eg Almuñecar

CP or Codigo Postal (Post Code) eg 18690

Provincia (Province) eg Granada

Section 2 Lugar donde se solicita el N.I.E (Where you are when applying for your NIE)

España – for applications whilst in Spain
Fuera de España – for applications by post from outside Spain
Embajada/Consulada – for applications through a consulate

Section 3 Datos relatives a la solicitud (Reasons for Application)

2.1 Motivo por el que solicita el NIE (2) (Motive for application of NIE)
Económico / Profesional / Social - (Economic, Professional or Social) - tick professional for work reasons or social for house purchase
Detalle del motivo (Details for Motive) – here you need to write “NOTARIO, REGISTRO DE PROPIEDAD, HACIENDA” (Notary, Property Registration and Tax Authority)

Section 4 Datos del representante legal del solicitante, en los casos de exceptuación de la obligación de presentación personal de la solicitud – (The details of the person applying on your behalf, i.e. a gestor, solicitor or other representing agent) Not required to be completeed if you are applying in person.

Section 5 Domicilio a efectos de notificaciones (Your representative’s address which should be left blank if applying personally; and is often completed with the address of your legal representative in Spain ie lawyer, estate agent office, etc.)
Sign the form at the bottom, below 'firma de solicitante' and date (fecha) above on the dotted line (day – , - de month, - de year) accordingly.