Learn about all the changes to the Single Vehicle Tax Code (IUC)

Decree-Law No. 161/2026, of 4 August, introduced amendments to the Single Vehicle Tax Code (IUC).

The main change concerns the rules governing the assessment and payment of the tax. Currently, IUC is paid annually, in the month corresponding to the anniversary of the vehicle’s registration. Under the new rules, the tax will be assessed on a single date, with the possibility of payment in instalments depending on the amount of tax due.

Accordingly, IUC will be paid as follows:

• Amount equal to or less than 100 € – a single instalment, payable in April;

• Amount over 100 € and equal to or less than 500 € – two instalments, payable in April and October;

• Amount exceeding 500 € – three instalments, payable in April, July and October.

Where payment in instalments applies, taxpayers may opt to pay the full amount by the end of April.

However, these changes will only apply from 1 January 2028.

In order to ensure the tax neutrality of the measure, the legislation provides for a transitional provision for the year 2027, establishing specific payment rules applicable to that tax period.

Accordingly, in 2027, IUC will be paid as follows:

• Amount equal to or less than 500 € – a single instalment, payable in October;

• Amount exceeding 500€ – two instalments, payable in July and October.