The Single Circulation Tax (IUC) will undergo changes in 2026, introducing a unified payment date. However, exemptions exist, so certain drivers will not have to settle the IUC with the Tax Authority (AT).
According to the Automobile Club of Portugal (ACP), the following exemptions are outlined in the IUC Code:
- Vehicles exclusively electric or powered by renewable non-combustible energies.
- Light passenger cars or mixed vehicles up to 2500 kg, registered until June 30, 2007 (Category A), or goods and mixed vehicles with a weight over 2500 kg (Categories C and D), and motorcycles, mopeds, tricycles, and quadricycles (Category E) older than 30 years, considered of historical interest by competent entities (e.g., ACP Classics) that are used occasionally and do not travel more than 500 kilometers annually.
- Automobiles and motorcycles over 30 years old that are museum pieces used occasionally with travel limited to 500 kilometers annually.
- Vehicles belonging to people with a disability equal to or greater than 60%. To benefit from the IUC exemption, these vehicles must meet environmental requirements: Category B vehicles must have a CO2 NEDC emission level up to 180 g/km or up to 205 g/km (CO2 WLTP), or vehicles registered before July 1, 2007, or motorcycles, mopeds, tricycles, and quadricycles. Each beneficiary is entitled to one IUC exemption per vehicle and year, with a maximum value of €240. Although the exemption applies to the owner, the tax relates to the vehicle. Therefore, the vehicle must be registered in the disabled person’s name.
- Vehicles considered abandoned under the Highway Code once acquired by the State or local authorities.
- Vehicles declared forfeited to the State.
- Passenger cars for hire service with a driver (T) or taxis registered after July 1, 2007, with a CO2 NEDC level up to 180 g/km or a CO2 WLTP level up to 205 g/km, or light passenger or mixed vehicles up to 2500 kg registered until June 30, 2007.
- Vehicles of Private Social Solidarity Institutions (IPSS).
- Ambulances and vehicles for patient transport, as well as funeral vehicles.
- Agricultural tractors.
- Vehicles of forest firefighter teams that are part of the Forest Defense System against fires.
- Vehicles belonging to the Portuguese State (central, regional, and local administration) or other foreign States.
- Vehicles of military and security forces.
How to request IUC exemption?
According to the ACP, the process “depends on the specific case for which you are entitled to the IUC exemption.”
- People with a disability degree above 60%: “They must apply at the tax office or on the Finance Portal. However, this is only possible if the disability information is already recorded with the Tax Authority (AT). To do this, apply for the IUC exemption in the first year you have the vehicle, which will remain valid in subsequent years until you change vehicles.”
- Vehicle-related cases: “No action is needed to benefit from the IUC exemption, as the AT will be informed of the vehicle’s characteristics upon registration and determine whether it is subject to tax. This applies when purchasing an electric vehicle.”
