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- Vehicles, Live in Portugal
What Is IUC? Portugal’s Annual Car Tax Explained
🚗 What Is the IUC?
The IUC is an annual tax on owning a vehicle registered in Portugal. It applies to cars, motorcycles, vans and even boats and private aircraft.
- It’s paid by the owner registered on the vehicle’s documents — even if the car isn’t being used.
- If you sell your car, make sure the change of ownership is registered. Otherwise, you may still receive the IUC bill.
💶 How Is It Calculated?
The amount depends on the vehicle category and its characteristics:
- Category A: cars registered between 1981 and 30 June 2007 — based on engine size and age. Usually cheaper.
- Category B: cars registered from 1 July 2007 — based on engine size and CO₂ emissions. Usually more expensive for powerful or high-emission cars.
- Other categories cover goods vehicles, motorcycles, boats and aircraft.
As a rough idea, a small, recent petrol car may pay a few dozen euros a year, while a large, high-emission car can pay several hundred. You can simulate the amount on the Portal das Finanças.
📅 When Do You Pay?
- Until 2026: the IUC is paid every year during the month the car was first registered (for example, a car registered in May pays every May).
- From 2027: a new calendar comes into force. After a transition year in 2027, from 2028 the IUC will be paid in April, and higher amounts can be split into instalments (for example, April and October, or April, July and October).
The amount and the way it’s calculated don’t change — only the payment dates.
💻 How to Pay
- Log in to the Portal das Finanças (with your NIF and password or the Chave Móvel Digital).
- Go to the IUC section and issue the payment document.
- Pay by Multibanco, MB WAY, homebanking, at a Finanças office or at CTT post offices.
‼️ Pay on time. Late payment leads to fines and interest. Many people set up a reminder (or automatic payment) to avoid forgetting.
✅ Who Is Exempt?
Some vehicles and owners don’t pay IUC, including:
- 100% electric vehicles
- Classic cars over 30 years old used occasionally (with conditions)
- People with a disability of 60% or more, for one vehicle, within certain limits (must be requested)
- Certain public, social and emergency vehicles
🚘 Just Arrived With Your Car?
Once your car gets Portuguese plates, it becomes subject to IUC in Portugal. The first IUC is due shortly after registration — keep an eye on your Portal das Finanças.
🚀 Final Considerations
The IUC is simple once you know the rules: it’s yearly, it depends on your car’s engine and emissions, and it’s paid online. With the new calendar coming in 2027 and 2028, it will be easier to plan for.
📢 Expert Advice: When buying a used car, ask the seller for proof that the IUC is paid up to date — and register the change of ownership immediately.
Need help with your car in Portugal? Step Inside Portugal handles vehicle legalisation and the paperwork that comes with it. ✨
This article is for general information and reflects the rules as of October 2026. Confirm the details on the Portal das Finanças.
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