Portugal’s New IUC Payment Calendar: What’s Changing

The Portuguese government has published a decree-law that overhauls the way the annual road tax – Imposto Único de Circulação (IUC) – is collected. Starting with a transition period in 2027, the tax will eventually move to fixed payment dates rather than being tied to the month a vehicle was first registered.

Under the new model, from 2028, IUC bills of €100 or less will be due by the end of April. For amounts between €100 and €500, the tax can be split into two equal instalments, payable in April and October. Bills exceeding €500 will be spread over three payments, in April, July and October.

Before the new calendar kicks in, 2027 acts as a buffer year. During this transition, owners whose IUC is €500 or below will pay the entire amount in October. Those with bills above €500 can pay in two instalments – July and October – or choose to settle everything in July. This one-off schedule is designed to avoid a situation where taxpayers would have to pay IUC for both 2026 and 2027 within a very short space of time.

The government says the changes aim to boost voluntary compliance by making tax deadlines easier to remember and by spreading larger amounts over several months. It insists the reform is revenue‑neutral and will not create any additional financial burden for taxpayers.

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What the New IUC Schedule Means for Portuguese Drivers

Why the Portuguese Government Is Rescheduling IUC

By linking payment dates to the calendar instead of each vehicle’s registration anniversary, the tax authority hopes to reduce the administrative clutter caused by thousands of different due dates. A predictable annual rhythm – April, October and, for the priciest categories, July – gives citizens a clear timetable and may cut missed payments that trigger fines and interest.

The 2027 Transition: A One‑Year Cushion

The temporary rules for next year are the most immediately relevant for drivers. The standard switch would force owners to pay 2026’s IUC around their usual month and then 2027’s shortly afterwards under the new fixed calendar. By pushing all payments into the second half of 2027 – October for smaller bills, July and October for larger ones – the government sidesteps that cash‑flow crunch. The decree also allows vehicle owners to request cancellation of the 2027 IUC liability if they deregister a category A, B, C, D or E vehicle during the year before its registration anniversary.

Beyond 2028: Fixed Dates and Instalments

From 2028, the new segmentation means owners of ordinary passenger cars (usually category B) with modest CO₂‑based tax bills will simply pay once by April. Owners of higher‑emission or more powerful vehicles – where IUC can run to several hundred euros – gain the option of splitting the bill, easing month‑to‑month pressure. However, the instalment plan is not a discount; the full annual amount is still due.

Capping the Disability Exemption

The decree introduces a €240 annual ceiling on the IUC exemption for people with a degree of disability of 60% or more for vehicles in categories A, B and E. Previously, the exemption covered the full tax on one eligible vehicle each year. Now, any IUC above €240 will have to be paid by the owner, a change that will affect drivers with larger‑engined or higher‑emission adapted vehicles.

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What Car Owners Need to Do Now

For car owners in Portugal:

  • Check your IUC amount for 2027. The bill is based on your vehicle’s CO₂ emissions and engine capacity. If it is €500 or less, set aside the full amount by October; if higher, budget for payments in July and October (or pay the whole sum in July).
  • Plan for the end of the registration‑month system. After 2027, you will no longer pay around your car’s “birthday”. Mark April and, if applicable, July and October in your calendar for 2028 onwards.
  • Verify your exemption status. If you benefit from the disability‑related IUC exemption and your yearly tax exceeds €240, be prepared to pay the difference starting from the 2027 tax year.
  • Keep an eye on the official IUC portal. The tax authority will issue notifications with the exact payment dates and instalment amounts once the new system is fully active.