I'm going to Spain for my year abroad; do I need a NIE?

A NIE is basically the foreigner's version of the Spaniard's ID card (DNI.)  If you intend to open a bank account then you must get one before doing so.  They use the NIE for most things, although it is also possible to use your passport number as a form of I.D.

The process for getting the NIE varies in different regions and cities.  I lived in Santander, Cantabria and I went to the Oficina de Extranjeros.  However, I had friends in different regions who went to the police station.  The best thing to do is to ask someone.  

You are required to fill out a form with all your details* as well as provide photocopies of your passport and either your ERASMUS agreement with the university or your nombramiento from your school if you're an assistant.  They may ask you for a few other things, it really depends which funcionario ( civil servant) you assigned to.  Once the paperwork is complete, you will be given a cheque - I think it's 7 euros or something.  You then need to go to the nearest bank and say that you want to pay it.  ( You can pay in cash.) They will process your payment and then you have to return to the office where they should give you your NIE card.  ( In my case, I was told to return a couple of days later to collect it) 

It's actually relatively simple but Spanish administration is really unorganised in comparision to the UK.  Perseverance is key. 

*  if you haven't sorted out your accommodation and don't have an address yet, it's possible to use the school's address if you are an assistant.  

In Melilla (and perhaps the case is the same for other Spanish territories outside of Spain) once you have your residency card, you can get a certificate that entitles you to half price tickets for planes and boats.

There are some great articles about the NIE application process on Third Year Abroad! Check them out for tips :)