Portuguese vehicle owners will face a unique financial burden in early 2026 as new tax regulations will require some to pay their annual vehicle circulation tax twice within a short period.
The new rules for Portugal’s Imposto Único de Circulação (IUC), an annual vehicle tax, mandate that all vehicles pay the levy in February 2026. This means drivers who paid their 2025 IUC in December will be obligated to make a second payment just two months later.
To ease this transition, authorities are offering an option for owners to pay their 2026 IUC in two installments. This flexibility is available only for tax amounts exceeding 100 euros.
The IUC is an obligatory annual tax for all vehicles registered in Portugal. Under the installment plan, the first payment will be due by the end of February 2026, with the second payment required by the end of October 2026. Alternatively, eligible owners can still opt to pay the full amount by the end of February.