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An NIE number (Número de Identificación de Extranjero) is a tax identification number for the non-Spanish and is applied for at a National Police Station. It is a legal requirement that anyone purchasing a property, purchasing a car, starting a business, applying for a mortgage or working in Spain has an NIE number.
The NIE document is applied for in person or by someone on your behalf with power of attorney.
The process for applying for a Residency certificate is the same as applying for an NIE number; it can be applied for at the same time as the NIE or separately at a later date. The residency (residencia) is to be applied for by persons who wish to reside in Spain for more than 3 months, once you have your residencia certificate is does not expire.