🚗 "Portugal Overhauls Car Tax System: Fixed Payment Dates and Split Installments Begin in 2026.
The payment of the Vehicle Circulation Tax (IUC vehicle tax) will change in 2026, in an attempt by the government to combat forgetfulness and simplify the tax process. Currently, the IUC is paid in the month corresponding to the vehicle's registration, but from next year, this will no longer happen. The new rules establish that the tax will be char
ged, in a generalised way, during the month of February. If the amount is equal to or less than €100, payment must be made by the end of that month. If it is higher, the taxpayer may choose to pay the total amount in February or divide the payment into two instalments: February and October, according to SIC Notícias. The IUC (Vehicle Circulation Tax) is an annual tax that must be paid by all owners of motor vehicles registered in their name, whether individuals or companies. During the first year of registration, payment must be made within 30 days of the legal deadline for vehicle registration. When the car is purchased new from a dealership, the tax is paid at the time of purchase. The amount to be paid varies according to the vehicle category, the year of registration, the engine displacement, the type of fuel, and carbon dioxide emission levels. The government divides vehicles into seven distinct categories, which determine the final tax calculation. © www.theportugalnews.com