The Government has approved in the Council of Ministers changes to the payment of the Single Circulation Tax (IUC), which will now be made at the same time for all taxpayers, regardless of the month of registration. But, contrary to what was initially announced, these changes will only come into effect in 2027, not 2026, and the payment will be made in April, not February according to a report by Eco.

“A legislative authorization bill regulating the method of payment of the IUC (Vehicle Tax) has been approved,” announced the Minister of the Presidency, António Leitão Amaro, at a press conference held after the Council of Ministers meeting, clarifying, “so that there is no fake news,” that “the changes to the IUC do not imply any increase in the tax. On the contrary, they simplify the way Portuguese citizens pay this tax.”

“The idea is that this payment will no longer be made in the month of vehicle registration and will instead, like most other taxes paid by Portuguese citizens, have a fixed month.” And that month will be April, contrary to what was initially stated by Joaquim Miranda Sarmento.

“In 2025, the current rules remain in effect, and in 2026, taxpayers whose total IUC (Vehicle Tax) value is less than €100 will pay in February,” said the Minister of Finance during a Council of Ministers briefing when a package of 30 tax simplification measures was approved in January of this year.

Those who own a vehicle on January 1st of each year will pay the IUC in April if the value is up to €100. Between €100 and 5500, the tax can be paid in two instalments – April and October. For amounts above €500, payment can be made in three instalments: April, July, and October, the Minister of the Presidency detailed.

“There will be a transition regime in 2027 to avoid situations where taxpayers would have to pay the IUC for 2026 and 2027 in a short period of time,” he concluded. Under this transitional regime, the tax must be paid in a single instalment during the month of October when the tax amount is equal to or less than 500 euros, or in two instalments during the months of July and October when the tax amount is greater than 500 euros.