IUC: What it is, when it is paid, and what changes in 2024

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

The Single Circulation Tax (IUC) is taxed on all owners of light and heavy passenger and goods vehicles, motorcycles, recreational boats or aircraft, whether new, second-hand or imported. Car owners are subject to this tax.

The value is paid annually and recently suffered an increase in all categories, with the State Budget for 2024.

The goal of this taxation is to compensate for the environmental costs and wear and tear that roads suffer due to vehicle operation. That's why the tax calculation is based on the vehicle's engine displacement and respective carbon dioxide emissions. 

Note that for vehicles with license plates issued before July 2007, the tax amount to be paid is lower for diesel vehicles.

In the case of imported cars, if they were purchased in a country of the European Union, Norway, Liechtenstein, or Iceland, the date considered for calculating the Vehicle Tax is the date of first registration and not the date of import. However, if they were purchased in other countries, the date counted is the date of importation.  

What vehicles are exempt from paying the Vehicle Tax (IUC)?

Vehicles exempt from paying IUC include all 100% electric cars, agricultural tractors, ambulances and vehicles for transporting patients, fire trucks, government vehicles, taxis, and vehicles for individuals with a disability equal to or greater than 60%.

When is the IUC paid?

The 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 bought first-hand from a car dealership, the IUC is paid at the time of purchase).

Afterwards, you have to pay the annual Vehicle Tax, having the entire month of vehicle registration to do so. If it's a pleasure boat or aircraft, however, you must pay in January.

How to pay the IUC?

The IUC payment is made through the document provided by Finance, 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.

For 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 payment via MBWay or through references for Multibanco, homebanking, or post office payments.

But you can also schedule an appointment at a Tax Office counter and, through the Vehicle Registration Document or property registration and logbook, make the payment directly at the counter; or at a Citizen's Space, also having to bring your identification documents, in addition to the vehicle documents.

What are the changes to IUC for 2024?

With the State Budget for 2024, there were plans for a general increase in the Vehicle Tax, focusing on a higher increase for vehicles registered between 1981 and 2007, as well as category E vehicles registered after 1992 – a measure that ultimately did not proceed.

Still, the overall increase in IUC values advanced in all categories. For gasoline vehicles, the increase was about 3% and for diesel vehicles about 2.5%, compared to 2023 values.

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

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