Portugal Sets Fixed Dates for Vehicle Tax (IUC) Payments Starting 2028

A decree‑law (No. 161/2026) published in the Diário da República and effective 1 January 2027 reforms the payment of Portugal’s Imposto Único de Circulação (IUC). From 2028, vehicle owners must pay the tax on fixed dates rather than the month of registration. Payments are split by amount: up to €100 is due by the end of April; €100‑€500 is paid in two installments (April and October); amounts above €500 are paid in three installments (April, July and October). A transitional regime applies in 2027, with a single October payment for amounts up to €500 and two installments (July and October) for higher amounts, while still allowing a full‑payment option in July.

The government states the changes aim to “promote voluntary compliance, streamline procedures and reinforce confidence and transparency in the tax relationship” and to avoid penalising taxpayers. A provision also allows owners to cancel the IUC for vehicles whose registration is cancelled during 2027 before the anniversary date, ensuring no extra financial burden.