Hi, I’m Ferdi, and if you’re living in Portugal or planning to move here, it’s good to know that beyond the sunshine and great coffee, there’s a bit of paperwork involved in life on the road. One thing many expats and new residents don’t expect is the IUC — our annual car tax.

But don’t stress — it’s not complicated. I’ll walk you through exactly how to pay your Imposto Único de Circulação (IUC) in Portugal, how to avoid fines, and even how to save money if you own an electric vehicle.

🧾 What Is IUC and Who Needs to Pay It?

If you own a car in Portugal, IUC is the annual vehicle tax you’ll need to pay — regardless of whether you use the car or not.

Here’s who needs to pay:

• 🚘 Anyone who owns a vehicle registered in Portugal

• 🌍 Expats who’ve imported and registered a car

• 🔁 People who’ve just bought a used car here

💡 Pro Tip: You are taxed based on the car’s specs, not its usage. So even if your car just sits in the garage, you still need to pay.

📅 When and How Often Do You Pay It?

Every year, in the same month your vehicle was first registered.

Example: If your car was registered on March 12, you need to pay before the end of March every year.

⚡ Good News for Electric Vehicle Owners

If you’re driving 100% electric, there’s even better news:

🚫 You don’t pay IUC at all.

That’s right — fully electric vehicles are exempt from this tax. So not only do you help the planet, you also skip this annual cost completely.

💻 How to Pay Your IUC Online (It’s Easy, I Promise)

Here’s how I do it every year via the Portal das Finanças (the Portuguese Tax Authority website):

Step-by-step:

1. Go to: portaldasfinancas.gov.pt

2. Log in with your NIF number and password

3. Navigate to:

   ➤ Cidadãos → Serviços → Veículos → Emitir Documento de Cobrança IUC

4. Fill in your car’s details (plate, category, etc.)

5. A reference number is generated

6. Use your bank app, Multibanco, or MBWay to pay

🏁 Once you’ve paid, the receipt stays in your portal under “consultar IUC.” Always download a copy for your records.

🏦 Can I Pay in Person?

Yes, you can:

• Visit your local Finanças office

• Go to a Loja do Cidadão

• Pay at an ATM machine (Multibanco) with your payment reference

❌ What If You Forget to Pay?

You’ll face:

• Minimum €15 fine

• Higher penalties if delayed further

• You may also struggle to sell, inspect, or legally drive the vehicle until paid

🔁 Just Bought or Imported a Car?

I get this question often from clients who are relocating:

👉 If you bought a used car, you take over IUC immediately after registration.

👉 If you imported a vehicle, after clearing customs and registration (ISV tax), you’ll start paying IUC annually — like any other car.

🛠️ Need a mechanic, inspection station, or help registering a car? I can point you in the right direction.

🏡 How Immo Lusitania Helps (That’s Me!)

At Immo Lusitania, I don’t just help people buy villas in the Algarve or a townhouse in Vilamoura — I help them understand life here. When you move to Portugal, there’s a lot to think about: utilities, taxes, cars, registrations — and that’s where I step in.

✅ I love giving clients clear advice and connecting them with the right local professionals — from notaries to mechanics.

✅ While we list beautiful homes for sale, we also have access to hundreds more through trusted partners.

✅ Whether you’re looking for a renovated farmhouse in the Alentejo, an apartment near the beach, or a quiet investment property, I can help you find it.

💡 One client told me they were overwhelmed with Idealista and juggling five different agents. With me, you talk to one person: I’ll handle the rest.

📞 Ready to Buy Property and Settle in Portugal?

Whether you’re buying your dream villa in Vilamoura, a rural home in the Alentejo, or just trying to sort out car tax — I’ve got your back.

📩 Email me directly: ferdi@immolusitania.ch

📲 Use the WhatsApp button on our Contact Page

📅 Or book a call with me via Calendly — no strings attached.

💬 Pro Tip

If you’re new in town, find a good local Contabilista (accountant) to help you with registration and taxes — and avoid mistakes with the Finanças. Ask me, I know a few good ones.

💡 FAQ – Car Tax (IUC) in Portugal

🧾 How do I know when my IUC is due?

Check your car’s original registration month. That’s when it’s due every year.

⚡ Do electric vehicles pay IUC in Portugal?

Nope! Fully electric cars are exempt from this tax.

🇵🇹 I just moved here. When do I start paying?

As soon as your car is registered in your name — whether bought locally or imported.

🧰 Can I get help with the paperwork?

Yes. I can connect you to the right people — mechanics, accountants, and tax advisers — all across the Algarve and Alentejo.

🏠 Can I also ask for help buying a house?

That’s what I do best 😉 Whether you want a villa with a pool or a renovation project, I help you buy with confidence and local support.