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 had your normal residence abroad for at least 6 months (consecutive, or interpolated where stay restrictions apply) before the transfer.
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 6 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 6-month prior-residence requirement refers to your residency before the move, not how long you have been in Portugal. This is the Portuguese ISV relief. If you are moving from outside the EU (for example the UK or the USA), a separate customs-duty and import-VAT transfer-of-residence relief may also apply, and that relief generally requires a longer period of residence abroad — see the UK import guide or the USA import guide. Keep copies of your foreign utility bills, lease agreements and official registrations covering the qualifying period.
Bringing your own car when you move is a decision in itself — the 6-month residence, 6-month ownership and 12-month application clocks are three different periods, and there are further limits (a once-every-10-years cap and a 12-month no-sale rule) after approval. Our moving to Portugal with your car guide walks through eligibility, evidence and deadlines in full.
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 qualifying ones pay a statutory intermediate rate instead of the full ISV:
General route: electric-only range ≥ 50 km AND CO₂ < 50 g/km. A PHEV homologated Euro 6e-bis keeps the same ≥ 50 km range but its CO₂ threshold rises to < 80 g/km; a used-EU PHEV first registered 2015–2020 qualifies with range ≥ 25 km.
A non-plug-in hybrid with electric-only range > 50 km AND CO₂ < 50 g/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 ISV calculator to compare your specific vehicles.
Exemption 3 — Disability (incapacidade)
Portuguese residents with a recognised disability of 60% or more can apply for an ISV exemption on one vehicle, normally once every five years. CO₂ emission limits apply and the exemption is capped at €7,800 of ISV.
Conditions
Certified disability of 60% or more (typically permanent motor disability of non-psychological origin; multideficiência from 90%). Specific qualifying categories apply, so check your certificate against the AT conditions.
Normally one vehicle every 5 years, counted from the previous exemption. Earlier requests are allowed in listed cases — e.g. an irreparable accident, theft/robbery, or a change in disability needs.
Up to 160 g/km NEDC or 184 g/km WLTP. Higher limits (180 / 207 g/km) apply where an automatic gearbox is medically required; vehicles specially adapted for wheelchair transport have no CO₂ limit.
The exemption covers up to €7,800 of ISV. If the ISV due is higher, you pay the difference.
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
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 (at least 6 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 reduction do plug-in hybrids get in Portugal?+
Qualifying plug-in hybrids pay a 25% intermediate rate (you pay 25% of the standard ISV). The general route needs electric-only range ≥ 50 km and CO₂ < 50 g/km; a PHEV homologated Euro 6e-bis keeps the same ≥ 50 km range but its CO₂ threshold rises to < 80 g/km, and a used-EU PHEV first registered 2015–2020 qualifies with ≥ 25 km range. A qualifying non-plug-in hybrid pays a 60% intermediate rate. 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 normally apply for an ISV exemption on one vehicle once every 5 years (sooner after an irreparable accident, theft, or a change in disability needs). CO₂ limits apply — up to 160 g/km NEDC or 184 g/km WLTP, higher where an automatic gearbox is medically required, and no CO₂ limit for wheelchair-adapted vehicles — and the exemption is capped at €7,800 of ISV. The vehicle 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.
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.