IUC – Yearly Road Tax

IUC (Imposto Único de Circulação), or “circulation tax,” is the regular road tax that every car owner in Portugal must pay. There are two main regimes:

  • Old Regime: Applies to cars that first entered European roads before July 2007. Taxes are relatively low for these cars.
  • New Regime: Applies to cars that entered European roads after July 2008. Taxes are significantly higher for these cars.

For example, a small car might cost about €30-40 under the old regime but around €150 under the new regime. This is an important consideration when bringing an older car to Portugal.

You can calculate the IUC for your car using this calculator.

Electric cars and cars from before 1981 are exempt from IUC.

 

When and How to Pay IUC?

You will be required to start paying need to start paying IUC within 90 days of obtaining your DAV (Portuguese license plate number). You need to wait until the car registration is completed. Once you have received your DUA, the car will show up when you log in to the Finance Portal.

In our experience it’s not always possible to make the first payment through the Portal, so in that case you will need to visit the local Finance Office.