The way the Portuguese pay the Single Circulation Tax (IUC) will change again. The Government decided to definitively abandon the traditional model, in which the IUC is paid in the month the vehicle is registered, and chose a fixed month for all taxpayers. The change, announced at a press conference after the Council of Ministers, was explained by Leitão Amaro and is scheduled to come into effect only in 2027. According to Jornal de Negócios, the month chosen will no longer be February, as stated in the initial proposal.
The change comes as part of the tax simplification package that the Executive has presented, but brings more news than the calendar suggested. According to the same source, the tax will be paid in April and will have a split system for those with higher amounts to pay.
New calendar and possibility of paying in several installments
According to Jornal de Negócios, the Government defined April as the universal month for IUC payment. All owners of vehicles registered on January 1st of each year must pay tax on that date, regardless of the month of registration. The measure brings the IUC closer to the functioning of other taxes, making the calendar more predictable.
Fractionation is another relevant change. According to the publication, anyone paying less than 100 euros will continue to pay the tax in a single installment. Anyone who has between 100 and 500 euros will be able to divide the amount into two periods, April and October. For amounts exceeding 500 euros, payment can be made in three installments: April, July and October.
Leitão Amaro stressed that this change does not represent an increase in tax. The official stated that the change only aims to simplify and provide predictability, in an effort to avoid misinterpretations. According to the same newspaper, the minister stressed that the objective is to make life easier for taxpayers.
Entry into force only in 2027 and transitional regime still to be explained
Despite having been initially scheduled for 2026, the measure will only move forward in 2027. According to Jornal de Negócios, the Government recognizes the need for a transitional regime to prevent taxpayers from being forced to pay two IUC in a short period of time. However, details about this mechanism have not yet been released.
The Executive insists that the delay in the calendar allows for better preparation of the transition and adjustment of the Tax Authority’s internal procedures. The objective is to ensure that there will be no duplication of payments or system failures.
The change represents one of the biggest recent revisions to the IUC payment method. By separating the settlement from the registration date, the Government puts an end to a model that has been in force since the creation of the tax. This change has an impact on millions of owners and involves automatic adjustments for companies with fleets, private consumers and legal representatives.
The debate over the IUC payment date has been marked by doubts and fears of hidden increases. According to , the Executive intends precisely to counter this perception and ensure transparency, reinforcing that there is no planned increase.
What to expect in the coming months
Until 2027, the current regime will remain in place. Taxpayers continue to pay in the month of registration and the usual deadlines remain unchanged. Approval of the proposal by Parliament will be the next step, but the Government has already made it clear that the change is to move forward.
The real impact will only be felt when the new calendar is in force. For now, the official message is one of stability and simplification, with a final warning left by Leitão Amaro: changes yes, increases no.
Also read:
