At C1 Broker, we strive to keep our clients informed about important updates. A major change to the Imposto Único de Circulação (IUC) payment schedule has been announced, and it’s set to simplify the process for all vehicle owners in Portugal. Here’s what you need to know about these changes, which are scheduled to come into effect in 2026.
What Is Changing?
The Portuguese government has revised the payment rules for IUC, with the aim of making the process more uniform and convenient for taxpayers. Here are the key updates:
- Unified Payment MonthStarting in 2026, you will no longer pay the IUC in the month of your vehicle’s registration. Instead, all vehicle owners will pay their IUC in February, regardless of the registration month.
- Option for Installment PaymentsFor taxpayers whose IUC exceeds €100, there will now be an option to split the payment into two installments:This flexibility is designed to make it easier to manage higher IUC payments.
- First installment in February
- Second installment in October
Why Is This Change Important?
This shift simplifies the payment process, particularly for those who own multiple vehicles or have vehicles with higher IUC rates. By consolidating the payment period and offering an installment option, the government aims to:
- Reduce Administrative Burden: No more confusion about varying payment months based on registration dates.
- Enhance Flexibility: Splitting the payment helps reduce the financial strain for vehicle owners with high IUC.
- Streamline Processes: February becomes the central month for IUC-related tasks, improving planning for taxpayers.
When Does It Start?
These changes will come into effect from 2026 onwards, giving vehicle owners ample time to prepare for the new system.
How C1 Broker Can Help
At C1 Broker, we’re more than just an insurance provider—we’re here to help you navigate life in Portugal. If you have any questions about how this change might affect your obligations or need assistance with car insurance tailored to your needs, our team is ready to assist.
We can help ensure your vehicle is fully compliant with Portuguese law and offer the best insurance options for expats and locals alike. From protecting your car to understanding tax updates like the IUC, we’re your trusted partner.
