IUC: What it is, when it's paid, and changes in 2024.

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What is the Unique Circulation Tax (IUC) applied to automobiles?

The Unique Circulation Tax (IUC) is levied on all owners of light and heavy vehicles, passenger and goods vehicles, motorcycles, pleasure boats or aircraft, whether new, second hand or imported.

The value is paid annually and recently increased in all categories, with the 2024 State Budget.

The purpose of this taxation is to compensate for the environmental costs and wear and tear that roads suffer from driving vehicles. That is why the tax calculation is based on the vehicle's engine size and respective carbon dioxide emissions.

Note that for vehicles registered before July 2007, the tax to be paid is lower for diesel vehicles.

In the case of imported cars, if they have been purchased in a country of the European Union, in Norway, Liechtenstein, or Iceland, the date considered for calculating the IUC is the date of the first registration and not the date of importation. However, if they are cases purchased in other countries, the date counted is the date of importation.

Which vehicles are exempt from the IUC charge?

Vehicles exempt from road tax include all 100% electric cars, agricultural tractors, ambulances, vehicles for transporting patients, fire trucks, state vehicles, taxis, and vehicles for people with a disability equal to or greater than 60%.

When is the vehicle tax paid?

The Vehicle Tax (IUC) must be paid in the first year of registration of each vehicle, with a 30-day period after the legal deadline for registration (if purchased first-hand from a car dealer, the IUC is paid at the time of purchase).

Afterwards, you have to pay the IUC annually, having the entire month of the vehicle registration to do so. However, if it is a recreational boat or aircraft, you must pay in January.

How to pay the IUC?

The payment of the vehicle tax is made through the document provided by the Tax Office, on the online portal or in person. It indicates the amount you have to pay according to the vehicle in your name, and the payment details.

To do this, you can access the Finance portal online and follow this path: All services - IUC - Submit current year - Search - Click on the license plate - Issue - Issue for payment and Print Document.

You can proceed with the payment by MBWay or through references for Multibanco payment, homebanking or postal services.

But you can also schedule an appointment at a Finance office counter, and through the Vehicle Registration Certificate or property registration document, make the payment directly at the counter; or at a Citizen's Desk, also having to bring your identification documents, as well as the vehicle's documents. 

What are the changes to the IUC for 2024?

With the State Budget for 2024, a general increase in the IUC was planned, with a particular focus on a greater increase for vehicles registered between 1981 and 2007, and vehicles in category E registered after 1992. This measure ultimately did not proceed.

Nevertheless, the overall increase in the values of Vehicle Tax advanced in all categories. For gasoline vehicles, the increase was about 3% and for diesel vehicles, it was about 2.5%, compared to the values of 2023.  

If the vehicle is diesel, it must also have the additional of IUC for vehicles in categories A and B - values that remain the same as those of 2023. Consult all rates in the IUC Code.

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