Portugal to change vehicle tax (IUC) payment schedule

Portugal is set to overhaul the Unique Circulation Tax (IUC) payment schedule, moving away from the current system where deadlines are determined by a vehicle's registration month. According to Decree-Law no. 161/2026, the new fixed calendar will begin implementation on January 1, 2027.

2027 will serve as a transition year. For taxpayers with an IUC amount of 500 euros or less, a single payment will be due in October. For amounts exceeding 500 euros, the tax will be split into two installments in July and October, though taxpayers may opt to pay the full amount in July.

The definitive model will take effect on January 1, 2028, with payment frequency determined by the total tax amount: - Under 100 euros: A single payment due by the end of April. - Between 100 and 500 euros: Two installments in April and October. - Over 500 euros: Three installments in April, July, and October, with the option to pay the full amount in April.

Under the new regime, missing a single installment will cause subsequent installments to become due immediately, and the total debt may be demanded at once. Tax brackets will be determined by the total IUC owed by the taxpayer across all their vehicles rather than per individual vehicle.