The government has approved a change to the payment model for the Single Circulation Tax (Imposto Único de Circulação or IUC). Minister of the Presidency António Leitão Amaro announced that the tax will now be settled on fixed dates rather than being tied to the month of a vehicle's registration.
The IUC is the Imposto Único de Circulação (IUC), Portugal's annual vehicle circulation tax charged on cars, motorcycles and other vehicles. If you own or import a vehicle as an expat you must pay the IUC each year to the tax office (rates depend on age, engine size and emissions), and recent news says the payment date will be fixed on the calendar.
New legislation published in the Diário da República authorizes the government to change the payment model for the Single Circulation Tax (Imposto Único de Circulação or IUC). Starting in 2027, the tax will move to a fixed payment schedule rather than being tied to a vehicle's registration month. The transition year of 2027 will feature single or split payments depending on the tax amount, with a permanent format taking effect in 2028.
The IUC is the Imposto Único de Circulação (IUC), Portugal's annual vehicle circulation tax charged on cars, motorcycles and other vehicles. If you own or import a vehicle as an expat you must pay the IUC each year to the tax office (rates depend on age, engine size and emissions), and recent news says the payment date will be fixed on the calendar.
The Official Journal (Diário da República) is Portugal's government gazette where laws, decrees and public contracts are formally published and take legal effect. Public‑private partnership approvals and other official notices — like the launch of the Central Algarve Hospital PPP — are published there so residents and businesses can find the authoritative text.
President Marcelo Rebelo de Sousa has delayed his decision on a decree-law aimed at reducing VAT on construction to 6% and lowering IRS on rents up to 2300 euros to 10%, creating uncertainty for the housing sector.
In Portugal, nearly 651,000 taxpayers were exempt from the Municipal Property Tax (IMI) in 2024 due to low incomes and reduced property values. This exemption affected 650,907 taxpayers, covering over 2 million rural and urban properties. The criteria for exemption include a gross income cap of €16,398.1 and a property value limit of €71,296.4. The IMI collection for municipalities was €1,500.3 million, showing a slight decrease from the previous year. The OECD has suggested reforms to the property tax system to support the housing market.
Starting in 2028, the IUC will be settled on a fixed date instead of the month of vehicle registration. In 2027, there will be a transition period with the tax being paid in October.
The EU Council has issued recommendations for Portugal, focusing on key areas such as healthcare investment, housing market accessibility, tax system reform, and pension sustainability.
Miranda Sarmento announced a tax justice reform and advocated for further cuts to personal and corporate income tax, as well as measures to reduce state bureaucracy, on the sidelines of the Franco-Portuguese Conference.
The Minister of Finance stated this Friday, June 19, that the Government will “move forward shortly” with the reform of tax justice, specifically with a review of tax rates. During a speech at the Franco-Portuguese Economic Conference in Lisbon, Joaquim Miranda Sarmento highlighted necessary measures to address the country's main constraints, namely in human capital, bureaucracy, and the labour market. Regarding fiscal simplification, he indicated that the reform of tax justice and tax litigation will proceed shortly, including a review of rates. Furthermore, he highlighted the reform of the State to “extinguish and reduce the number of entities, but above all to combat bureaucracy, and in those entities where” there is “perfect awareness that they are a bureaucratic problem, such as the APA [Portuguese Environment Agency], ICNF [Institute for Nature Conservation and Forests], IRN [Institute of Registries and Notaries], and CCDR [Commission for Coordination and Regional Development].” The minister also signalled the need to continue reducing marginal IRS (personal income tax) and IRC (corporate income tax) rates, noting that even though they are no longer the highest in the OECD, they are “still quite high.” For this year, Miranda Sarmento emphasized that, “despite all the difficulties,” it will be possible to achieve “growth of around 2% of GDP, well above the Eurozone average,” a balanced budget, and continued reduction of public debt. At this conference, focused on relations between Portugal and France, the minister listed examples of investments in Portugal, such as BNP Paribas and Natixis, projects which, as a whole, “are critical to the Portuguese economy.” The banking sector is “another success story,” he added, pointing out that “15 years ago the banks were in a very difficult situation; today they are resilient, well-capitalised, profitable, and proof of this was the purchase of Novo Banco by BPCE.” Miranda Sarmento: tax revenue shows that Portugal is doing better than people say. IRS and IRC reductions “are to be implemented,” guarantees the Secretary of State for the Budget.
The Minister of Finance says the executive will move forward with changes to tax justice and advocates for more fiscal simplification and less bureaucracy
The payment of the tax in the month of vehicle registration is coming to an end. In 2027, amounts up to 500 euros will be paid in a single instalment in October. In 2028, IUC amounts over 100 euros may be paid in two or three instalments.
The new partial VAT refund scheme for self-construction of housing is an invitation to tax fraud and the declaration of values below the actual cost of land, the head of the Order of Notaries told Lusa. Among the tax relief measures to increase housing supply, published on May 20...
A year ago, the country went to the polls and gave the AD a 32.2% victory. One year after those snap legislative elections, the secretary-general and parliamentary leader of the PSD, Hugo Soares, has no doubt that the Portuguese are living better now than they were before.
The President of the Republic, António José Seguro, has given the green light to the Government's decree with measures to respond to the housing crisis, which include, specifically, the reduction of VAT on construction to 6% and the autonomous IRS tax rate on rental income from 25% to 10% for those who charge moderate rents, up to 2,300...
If you live in Portugal but retain UK assets, it’s essential to keep up with UK tax reforms. Understand the changes taking effect this year, and plan now for the The post The new UK tax year: what changed, what hasn’t, and looking ahead to April 2027 appeared first on Portugal Resident.
The Tax Authority admits “challenges” regarding the IUC reform, approved this Wednesday. From 2028, the tax will be paid in April, July, and October, depending on the amount.
João Durão stated that bottled LPG has been treated in a discriminatory manner, despite providing, in his view, an important social service in Portugal.
The Organisation for Economic Co-operation and Development (OECD) has urged Portugal to reduce the tax burden on lower-paid workers, proposing a series of reforms including higher property taxes, the elimination The post Portugal should cut taxes for low-income workers – OECD appeared first on Portugal Resident.
The OECD advises Portugal to lower taxes on low-wage earners while increasing property taxes and eliminating ineffective tax exemptions. The report, 'Foundations for Growth and Competitiveness 2026', highlights that Portugal's economic performance lags behind advanced economies due to weak long-term productivity growth and labour market inefficiencies. It suggests structural reforms to boost productivity, improve youth and female employment, simplify the tax system, and address housing accessibility by streamlining construction licensing and shifting the tax burden from transactions to recurring property taxes.
