What is IUC?
IUC (Imposto Único de Circulação) is Portugal's annual road tax — paid every year by anyone who owns a registered vehicle in the country. It is similar to the UK's Vehicle Excise Duty (VED), the Dutch MRB, or the German Kraftfahrzeugsteuer. Unlike ISV, which is a one-time registration tax, IUC comes back every year for as long as you own the car.
Category A vs Category B — which applies to you?
Portugal divides vehicles into categories for IUC purposes. Most expats will deal with either Category A or Category B.
Category A — newer vehicles
Light passenger cars first registered from July 2007 onwards — including imports registered abroad from that date. IUC is based on both cc and CO₂. Higher-emitting, larger-engined cars pay more.
Category B — older vehicles
Vehicles first registered before July 2007. IUC is based only on cc and registration year — CO₂ is not used. These vehicles generally pay lower IUC as the amounts are not inflation-adjusted.
Our calculator handles both categories automatically based on the registration date you enter — you do not need to work out which category applies.
Hybrids and electric vehicles
Electric vehicles (BEV)
Fully electric vehicles pay zero IUC, every year, regardless of vehicle age, value, or engine size equivalent. Combined with ISV exemption, this makes the total annual tax cost of an EV in Portugal €0.
Plug-in hybrids (PHEV)
Plug-in hybrids are taxed under Category A as petrol vehicles using their CO₂ and cc figures. If the vehicle qualifies for the ISV PHEV discount (CO₂ ≤ 50 g/km, 50+ km range), that discount only applies to the one-time ISV — not to the annual IUC.
Standard hybrids
Non-plug-in hybrids are taxed exactly like equivalent petrol vehicles under IUC — no special rate applies.
When and how to pay IUC
When is IUC due?
IUC is due annually during the calendar month of your vehicle's first registration. For example, if your car was first registered in March (any year), your IUC payment window opens every March. The AT sends a notice to your Portal das Finanças inbox, but you are responsible for paying even if no notice arrives.
New to Portugal?
When you import and register a vehicle, your first IUC due date is the month of the Portuguese registration date — not the original foreign registration month.
How to pay
Portal das Finanças (online)
Log in at portaldasfinancas.gov.pt → IUC → pay with bank card or Multibanco reference. Fastest option.
Multibanco ATM
Select 'Pagamentos ao Estado' → IUC. Enter the reference number from your tax notice. Available at any ATM in Portugal.
MB Way
Use the MB Way app with the same payment reference. Convenient if you bank with a Portuguese institution.
Finanças office (in person)
Any local Finanças service desk can process IUC payment. Bring your NIF and vehicle registration details.
What happens if you miss the payment?
Unpaid IUC accrues interest and late penalties. The AT can flag the debt against your NIF, which can affect future property purchases, vehicle transactions, or residency renewals. Always check your Portal das Finanças inbox in the registration anniversary month.
Importing a car from abroad?
Full import guide — step by step →Related guides
Import a Car to Portugal
Step-by-step guide, documents & costs
ISV Calculator Portugal 2026
One-time registration tax explained
Car Tax Exemptions
Residency, disability and electric exemptions
Frequently asked questions
What is IUC in Portugal?+
IUC (Imposto Único de Circulação) is Portugal's annual road tax, paid every year by anyone who owns a registered vehicle in Portugal. The amount depends on engine displacement (cc), CO₂ emissions, fuel type, and the vehicle's first registration date.
How much is road tax in Portugal?+
IUC varies widely. A small petrol car (1,200 cc, 120 g/km CO₂) registered after 2007 typically pays €100–€180 per year. Larger or older, more polluting vehicles can pay €400–€600+. Electric vehicles pay zero IUC.
When do you pay IUC in Portugal?+
IUC is due annually during the month of your vehicle's first registration anniversary. The AT sends a notice via Portal das Finanças, but you are responsible for paying on time even if no notice arrives.
How do you pay IUC in Portugal?+
IUC can be paid via Portal das Finanças (online), at any Multibanco ATM using the reference from your tax notice, or via MB Way. In-person payment at a Finanças office is also possible.
What is the difference between Category A and Category B for IUC?+
Category A covers light passenger vehicles first registered from July 2007 onwards — IUC is based on both cc and CO₂. Category B covers vehicles registered before July 2007 — IUC is based only on cc and registration year, with no CO₂ component.
Do electric cars pay IUC in Portugal?+
No. 100% battery electric vehicles are fully exempt from IUC. They also pay zero ISV. This exemption applies regardless of vehicle age or value.
What happens if you don't pay IUC in Portugal?+
Unpaid IUC accrues interest and late payment penalties. The AT can flag the debt against your NIF, which can affect future property purchases or residency renewals. Always pay on time via Portal das Finanças.
This page provides general information based on published 2026 Portuguese IUC tax tables. It does not constitute legal or tax advice. Rules and rates may change. Always verify with the Autoridade Tributária e Aduaneira for your specific situation.