The government has approved changes regarding the payment of the Single Circulation Tax (IUC), as previously indicated by the Ministry of Finance. What is set to change? In simple terms: payment will no longer be tied to the vehicle’s registration month and will instead have a single payment date. However, these changes won’t take effect until 2027.
The Executive approved a legislative authorization proposal in the Council of Ministers to amend the provisions of the Single Circulation Tax Code related to the tax settlement, which is currently due on the vehicle’s registration anniversary, as noted in a statement sent to newsrooms.
“As this model is prone to operational and administrative constraints and increases the risk of unintentional non-compliance, the regime is being altered,” stated the government led by Luís Montenegro.
A New IUC Payment Schedule is Coming
In practice, the IUC payment schedule will now be as follows:
- The IUC is settled in one installment in April when the amount is equal to or less than 100€;
- In two installments in April and October when the amount is more than 100€ and equal to or less than 500€;
- In three installments in April, July, and October when the amount exceeds 500€.
“Anyone owning a vehicle on January 1 of each year will start paying the IUC in April,” explained the Minister of the Presidency, António Leitão Amaro, on Thursday at a press conference following the Council of Ministers.
He continued with the clarifications: “If the IUC due is up to 100 euros, it is paid in April; if it is between 100 euros and 500 euros, it is paid in two installments in April and October; If it exceeds 500 euros, it can be paid in three installments: April, July, and October.”
The proposal now moves to the Assembly of the Republic.
Attention! There Will Be a Transitional Regime
The Minister of the Presidency further stated that there will be “a transitional regime in 2027, to avoid situations where taxpayers would have to pay the IUC for 2026 and 2027 in a short period of time.”
“The idea is to stop making payments in the registration month — which varies for different vehicles — and instead have a fixed month, as is the case with most other taxes paid by Portuguese,” he further clarified in the same address.
“To make it clear” and “to prevent fake news,” Leitão Amaro emphasized that “the changes to the IUC do not imply any tax increase.” “On the contrary, they simplify how the Portuguese pay this tax.”
Not all vehicle owners have to pay the IUC, as there are cases that grant exemption from this tax, which are provided for in the IUC code. Check if this applies to your case.
Notícias ao Minuto | 09:05 – 20/11/2025
