State of the art ab initio calculations of the electronic and magnetic properties at the edges of magnetic nanostructures in an external electric field are presented in this paper. Our results for the Fe stripes on Fe(0 0 1) reveal the existence of spin-polarized edge states. A spatially inhomogeneous electronic structure is found at the edge. We demonstrate that the spin-dependent screening density varies greatly at the atomic scale. Tuning of the spin-polarization by the external electric field is demonstrated.