The IUC (Single Circulation Tax) will undergo major changes starting in 2026, but with no increase in the amount payable. These new rules will mainly modify the payment schedule and method, affecting all vehicle owners in Portugal.
The goal of the new IUC model is to simplify tax collection and reduce missed payments and fines, by concentrating the tax in a single annual payment period and allowing, in some cases, payment in two instalments. This measure will come into effect in January next year.
Change of Payment Date
Under the previous system, the IUC had to be paid by the end of the month corresponding to the vehicle’s registration. For example, if your car was registered in July, the tax had to be paid by the last day of that month each year.
From 2026 onwards, with the new model, the payment of IUC will no longer be linked to the vehicle’s month of registration.
The new system introduces a fixed annual deadline for all taxpayers, which must be paid by 28 February, regardless of the vehicle’s registration date.
If the IUC amount is equal to or below €100, the tax must be paid in a single instalment by the end of February.
If the value exceeds €100, taxpayers may:
- pay the full amount by the end of February;
- or split the amount into two instalments: the first by the end of February and the second by the end of October.
The IUC calculation basis remains unchanged for 2026. For vehicles registered before July 2007, the tax will continue to be based on engine displacement and type of fuel. For more recent vehicles, CO₂ emissions will also continue to be factored into the calculation.
Exemptions and Payment Methods
Existing IUC exemptions and reductions will continue to apply, including for:
- Electric vehicles (full exemption);
- Plug-in hybrid vehicles (75% reduction);
- Classic vehicles over 30 years old officially recognised;
- Drivers with disabilities, within the applicable legal limits.
Payment methods also remain unchanged: Finanças Portal, Multibanco, MB Way, online banking, or at CTT counters.
Penalties
Failure to pay IUC within the deadline may result in a fine of 15% to 50% of the outstanding amount, with a minimum of €50 (or €25 if paid voluntarily shortly after the deadline). In addition to fines, daily default interest and enforcement fees may also apply.
Moreover, unpaid IUC prevents the vehicle from passing mandatory inspection and, in persistent cases, may lead to immobilization or seizure of the vehicle.
To avoid issues, it is advisable to set a reminder for the deadline, which from 2026 will be 28 February.
Article Summary Published by Abanca.
