The three ISV exemptions
Most people importing a car to Portugal will pay ISV. But in three specific situations, you can reduce or eliminate it entirely. Here is what each exemption covers, who qualifies, and what you need to apply.
Exemption 1 — Relocation (mudança de residência)
If you are moving your primary residence to Portugal, you may be able to import one vehicle completely free of ISV. This is the exemption most expats ask about — and the one with the most conditions attached.
Conditions
You must be transferring your primary residence to Portugal from another country.
You must have owned and used the vehicle for at least 6 months before the move.
You must apply within 12 months of officially establishing residency in Portugal.
The vehicle cannot be sold, donated, or transferred for 12 months after import. If it is, the full ISV becomes immediately payable.
The exemption applies to one vehicle per person per relocation.
Documents needed
Passport or EU national ID
Proof of prior foreign residency
Official document confirming you lived abroad for at least 12 months before moving — e.g. utility bills, lease contract, or registration extract from your home country.
Vehicle registration document
Foreign registration certificate showing ownership for at least 6 months.
Proof of new Portuguese address
Rental contract, utility bill, or Junta de Freguesia declaration.
Portuguese NIF (tax number)
How to apply
Submit your exemption request together with your Declaração Aduaneira de Veículo (DAV) — the customs declaration filed when you import the vehicle. You can do this via Portal das Finanças or at a customs office. The AT reviews the application and issues a decision before any ISV payment is required.
Important: The 12-month residency abroad requirement refers to your residency before the move, not how long you have been in Portugal. Keep copies of all foreign utility bills, lease agreements, and official registrations for at least the prior 12 months.
Exemption 2 — Electric vehicles (BEV)
100% battery electric vehicles are fully exempt from both ISV and IUC — permanently, with no application required and no conditions attached. This is the most straightforward exemption in the Portuguese tax code.
ISV
€0
One-time registration tax
IUC
€0 / year
Annual road tax — every year
Plug-in hybrids (PHEV)
Plug-in hybrids do not get a full exemption, but can receive a significant ISV reduction:
CO₂ ≤ 50 g/km (WLTP) AND electric range ≥ 50 km — both conditions must be met.
Standard (non-plug-in) hybrid also meeting CO₂ ≤ 50 g/km AND range ≥ 50 km.
Neither PHEV nor standard hybrids are exempt from IUC. Annual road tax applies at normal petrol rates.
On a €40,000 petrol equivalent, switching to a BEV saves approximately €3,000–€8,000 in ISV at registration, plus €100–€300 per year in IUC for the life of the vehicle. Use the calculator above to compare your specific vehicles.
Exemption 3 — Disability (incapacidade)
Portuguese residents with a recognised disability of 60% or more can apply for ISV exemption on one vehicle every four years. Engine and value limits apply.
Conditions
Certified disability of 60% or more (multideficiência ou deficiência motora permanente de origem não psíquica).
One vehicle every 4 years. The clock resets from the date of the previous exemption, not from purchase date.
The exemption applies up to a maximum engine capacity set by the AT. Vehicles above this threshold pay ISV on the excess.
The vehicle must be for the personal use of the person with the disability. Commercial or shared-use vehicles do not qualify.
Documents needed
Passport or citizen card (Cartão de Cidadão)
Official disability certificate
Issued by the Portuguese health authority (ADSE, hospital, or specialist) certifying the disability level of 60%+.
Portuguese NIF
Vehicle registration or purchase documentation
Proof of the vehicle being purchased or imported.
Note: If you hold a foreign disability certificate, you will generally need it officially recognised in Portugal before it can be used for the ISV exemption. Contact the AT or a local tax advisor for guidance on your specific situation.
Not exempt? Calculate exactly what you'll pay.
ISV for EU imports is reduced by 10%–80% depending on vehicle age. Use the calculator to see your exact amount based on the official 2026 tables.
Calculate your import tax →Related guides
Import a Car to Portugal
Step-by-step guide, documents & full costs
ISV Calculator Portugal 2026
Calculate the one-time registration tax
IUC Road Tax Portugal 2026
Annual road tax explained and calculated
Frequently asked questions
Can I import my car to Portugal tax-free when relocating?+
Possibly, yes. The mudança de residência exemption can eliminate ISV entirely if you meet the conditions: you must be transferring your primary residence to Portugal, have owned and used the vehicle for at least 6 months before the move, and apply within 12 months of establishing residency. The vehicle cannot be sold or transferred for 12 months after import.
How do I apply for the ISV relocation exemption in Portugal?+
You apply through the Portal das Finanças or at a customs office when submitting your Declaração Aduaneira de Veículo (DAV). You need proof of prior residency abroad (minimum 12 months), proof of vehicle ownership for at least 6 months, and proof of your new Portuguese address.
What is the 12-month restriction after the relocation exemption?+
After using the mudança de residência exemption, you cannot sell, donate, lend, or otherwise transfer the vehicle for 12 months. If you do, the full ISV amount becomes immediately payable. This restriction is tracked by the AT against your NIF.
Do electric cars pay any car tax in Portugal?+
No. 100% battery electric vehicles are fully exempt from both ISV (one-time registration tax) and IUC (annual road tax). This applies to new purchases and imports, regardless of vehicle age or value.
What ISV discount do plug-in hybrids get in Portugal?+
Plug-in hybrids with CO₂ ≤ 50 g/km (WLTP) and electric range ≥ 50 km receive a 75% ISV reduction. Standard hybrids meeting the same criteria receive 40%. Neither is exempt from annual IUC.
Who qualifies for the disability ISV exemption in Portugal?+
Portuguese residents with a certified disability of 60% or more can apply for ISV exemption on one vehicle every 4 years. The vehicle must not exceed certain engine and value limits, and must be for the personal use of the person with the disability.
If I don't qualify for an exemption, how much ISV will I pay?+
ISV depends on engine size (cc), CO₂ emissions, fuel type, and age. EU imports receive an age discount of 10%–80%. Use the calculator on this page to get an accurate estimate based on the official 2026 tables.
Related guides
This page provides general information about Portuguese ISV and IUC exemptions based on currently published 2026 rules. It does not constitute legal or tax advice. Exemption conditions, limits, and procedures can change. Always verify your specific situation with the Autoridade Tributária e Aduaneira or a qualified Portuguese tax advisor.