Single Vehicle Tax Code (IUC)

In brief

Decree-Law No. 161/2026, of 4 August, has been published, amending the Single Vehicle Tax Code (Código do Imposto Único de Circulação - IUC). 

In detail

Within the scope of the tax simplification agenda announced by the Government, Decree-Law No. 161/2026 has been published, introducing amendments to the Single Vehicle Tax Code (Código do Imposto Único de Circulação — IUC). 

The main change concerns the rules on assessment and payment of the tax, which will now be based on fixed deadlines, no longer depending on the month of registration of the vehicle. 

Accordingly, IUC will be payable as follows: 

• A single instalment, in April, where the amount due is equal to or less than € 100; 
• Two instalments, in April and October, where the amount due exceeds € 100 and is equal to or less than € 500; 
• Three instalments, in April, July and October, where the amount due exceeds € 500. 

The decree also provides a transitional regime for 2027, designed to ensure a gradual transition to the new payment model. 

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