New Vehicle Tax (IUC) Payment Calendar Approved in Portugal: What Changes in 2027 and 2028?

 

 

If you own a car in Portugal, there are important changes coming to the way the IUC (Imposto Único de Circulação) — the Portuguese annual vehicle tax — is paid.

The new payment calendar has now been approved and will gradually come into effect over the next few years. Whether you are a British resident, retiree, digital nomad or newly arrived expat, understanding these changes will help you plan ahead and avoid unnecessary penalties.

Here is a clear and simple explanation of what will happen in 2026, 2027 and 2028.

 

 

What is IUC in Portugal?

The IUC (Imposto Único de Circulação) is the annual vehicle tax that must be paid by all owners of vehicles registered in Portugal.

Until now, the tax has been paid in the month when the vehicle was first registered.

For example, if your car was registered in June, you would pay IUC every year in June.

This system will change. The government has decided to introduce fixed payment dates, regardless of the vehicle’s registration month.

 

 

 

What Happens in 2026?

In 2026, nothing changes.

The current system remains in place:

• IUC must still be paid in the month of the vehicle’s registration.

• Each vehicle keeps its own individual payment month.

If you have IUC due in 2026, you should continue following the existing rule.

 

 

What Changes in 2027? (Transition Year)

The year 2027 will be a transition period. The rules will change slightly, but the final system will not yet apply.

In 2027:

If your IUC amount is up to €500

• It must be paid in a single instalment.

• Payment will be due in October.

If your IUC amount is above €500

• You may pay in two instalments:

  • July

  • October

• Alternatively, you can pay the full amount in July.

This temporary solution is designed to prevent situations where taxpayers would have to pay two annual IUC amounts very close together.

 

What Changes in 2028? (Final Rules)

From 2028 onwards, the definitive system comes into force.

The tax will no longer depend on the vehicle’s registration month. Instead, fixed deadlines will apply to everyone.

IUC up to €100

• Single payment.

• Due by the end of April.

IUC between €100 and €500

• You may:

  • Pay in two instalments (April and October), or

  • Pay the full amount in April.

IUC above €500

• You may pay in three instalments:

  • April

  • July

  • October

• Or pay everything in full in April.

This new structure provides more predictability and greater flexibility for higher amounts.

 

 

Why This Matters for UK Expats in Portugal

If you are not familiar with the Portuguese tax system, paying IUC based on the vehicle’s registration month could easily lead to confusion or missed deadlines.

With fixed payment dates:

• It becomes easier to plan your yearly budget.

• All vehicle owners follow the same calendar.

• Larger amounts can be split into instalments.

This is particularly helpful for expatriates managing finances across different countries.

 

 

Important: IUC and Car Insurance in Portugal

Paying IUC is mandatory to keep your vehicle legally registered in Portugal.

However, you must also ensure that you have valid car insurance, which is compulsory by law.

If you are:

• Importing a vehicle,

• Buying a car in Portugal,

• Changing residency status,

• Or reviewing your current insurance,

It is important to check that your cover is appropriate and fully compliant.

At C1 Broker, we assist UK residents and international clients with:

• Mandatory third-party car insurance

• Comprehensive cover

• Assistance services

• Legal protection

• Support in English throughout the process

 

 

Need Help with Car Insurance in Portugal?

If you would like professional advice or a comparison of car insurance options in Portugal, our team is here to support you clearly and efficiently.

We specialise in helping expats understand the Portuguese system and choose the right protection for their needs.