These taxes were implemented in July 2007, replacing "Imposto Automvel" and "Imposto Municipal sobre Veculos", respectively.
Previously, the vehicle tax ratio was focused on acquisition rather than property.
With the 2007 vehicle tax reform, tax revenue was evenly distributed between property and acquisition, to spread the tax revenue influx, reducing severe impact from highs and lows in the automotive market.
On a side note, when a car gets a license plate number, it gets it for life, meaning that one car (VIN) = one license plate (almost always) forever.
Generally speaking, Portugal doesn't have transit, temporary or personal license plates and as a rule of thumb you can't change your car's license plate number.
Car insurance is a separate process from getting a license plate, your car can have a license plate and, if kept outside public roads, doesn't have to have car insurance.
The ISV for common passenger cars is calculated considering two facts: engine cubic capacity (displacement) and CO2 emissions.
Both are declared by the manufacturer through a document called Certificate of Conformity or by the Department of Vehicles' (IMT or Instituto da Mobilidade e dos Transportes) Homologation.
There are several tax brackets for engine displacement and several tax brackets for CO2 emissions.
The purpose of these brackets is to charge significantly more tax if the vehicle has more cc or emits more CO2. The government official version is that ISV tries to tax the most polluting vehicles.
IUC is payable up to the end of the month of the portuguese license plate.
Example: if a car gets its license plate on 8th March 2017, one must pay IUC until 31st March in any given year. Nonetheless, although IUC is due yearly, only its payment is distributed along the year, to avoid payment peaks or last minute rushes.
There is no longer a "tax paid stamp" that you need to stick in the car. The police and transit authorities don't have any legal grounds to require any proof that the tax was paid. If you pay or not, it's only a matter of business between you and Autoridade Tributria (Tax Authority). However, Autoridade Tributria can and will issue a mandate to apprehend any car that is past due on IUC (something that, to my knowledge, is very rare).
The tax is calculated considering the same figures of ISV calculation: engine cc and CO2 emissions. There are two tax tables, one for each figure. Then, there is a coefficient factor to penalize younger cars. From 2017 there is also a new additional surtax for cars with more than 180g/km of CO2 emissions.
Diesel cars also pay a surtax. This surtax was meant to be temporary but, until now, it prevails.
There is a common confusion among imported used cars regarding IUC. The tax is payable, as mentioned above, until the end of the license plate's month.
But, some years ago, because we were importing too many used cars from UE countries (Germany mainly), there were concerns that these vehicles didn't match the wanted vehicle profile that Portugal was supposed to have. Let's say it another way: we were importing too much junk. So, the government changed our license plates layout to add a yellow side strip that mentions the month and year of the first license plate of the car, be it portuguese or not.
So, today, we have a tax that's payable until the end of the portuguese license plate's month but, in the physical license plate, the one that you find in the car, you can have a completely different month.
Predictably, this measure didn't accomplish its objective and in 2020, when a new format of license plates was issued because the old one was running out (dashes were dropped and the letter/number combination was changed to AB 12 CD), the yellow side strip with the car's first registration date was also dropped. As it is allowed for already issued license plates to change to the new format, you can see in the streets old cars with a new license plate format but with the old letter/number combinations (12 AB 34 and 12 34 AB).
Moreover, you can have a 2005 car, that was imported in 2010, that will pay IUC as a portuguese 2010 car (the tax's higher), and not a 2005 car, because the IUC is payable according only to the portuguese license plate date if its first license plate (registration) isn't from an UE/EEA country.
The only place where you can check the date and origin of the first plate is in the DUA (Documento nico Automvel - we have some affection for initials), the vehicle registration certificate.
So, if you bring a 2000 car from an UE/EEA country you'll be paying IUC accordingly to the first license plate date but, if you bring the same car from a non-UE/EEA country, such as the USA or Russia, you'll pay IUC as if it was new in Portugal.
If you need any further information, please feel free to ask using the comment box below.
I'm not a native english speaker, if my english isn't quite there, please do correct me, I'll be grateful if you do.
If you want to translate this article to your native language, post your translation in the comment box bellow and I'll add a new page to this site with your translation - with credits to you.
Hello,
I have a 25 year old Range Rover that has been modified from air suspension to coil springs.
Will this be an issue at the technical check when importing it from Holland?
If yes, how can I solve this? Arrange an additional homologation in Holland first?
Regards,
Bouwe
Hi,
I have read through the comments, but could not find my specific case. It's about importing a second hand (more than 6k km and more than half a year old) full electric vehicle from an EU country. I understand no ISV, IUC and no VAT (correct?). What about "import duty", customs 10%? I cannot find any information on this.
Thank you!
Frank
I have a trailer (atrelado) I have brought from the Netherlands. It is registered in the Netherlands and I intend keeping and using here in Portugal. The trailer is over the 300kg weight limit so does have to have a registration number and currently has the one from the Netherlands. Can I legally use this trailer and tow with a Portuguese registered vehicle or do I have to import and register here in Portugal
I am trying to cancel my car tax in Portugal, because the car has broken down since last year September. The insurance is already cancelled, but since I don't live in Portugal anymore I am not able to access the Finance website or visit an office. Does anyone know a company that could help me cancel this without me having to be there? With an online signature? Or any suggestions of how to cancel this and pay any remaining unpaid taxes?
Thanks for the response
good afternoon,
I am looking to import a 1968 mgc from Dubai to portugal at the end of this year.
I am very confused as to what tax / vat / import duty i will need to pay.
I have seen estimates of up to 200 pct tax ?? on the web, i hope this is not true.
Also i bought the car along time ago for only 5000 britsh pounds. Car is probably worth 20,000 pounds now. On what value would the car be taxed.
I am very confused by the process of bringing a car to the EU from outside the EU. I am a resident of Portugal for the last 2 yrs. I want to buy a very old (1993) Land Rover from Dubai where they are doing an extensive refurbishment. I know I have to pay VAT (and other taxes) to register the car in Portugal. But I would certainly prefer to pay the VAT on the value of the vehicle BEFORE the massive refurbishment as it would be much cheaper.
Is this how it works? VAT on value of the initial vehicle or the value AFTER the refurbishment? The company doing the work is willing to provide 2 separate bills of sale for me - 1) vehicle + 2) refurbishment.
Instead of shipping the vehicle all the way to Portugal, I can probably ship to another country (another EU country or maybe Morocco?) and drive it to Portugal, if that makes the process easier. Any help will be appreciated navigating this process.
I am living in Portugal since Oct. 22. I have a car in Hungary which is in process of registration. I am planning to bring it in Portugal when the registration is complete and register it here. Can I have the tax free status. I am still Hungarian citizen/resident as well as Portugal resident. Thank you for your answer.
The Portuguese government is corrupt, do not bring your car with you and try to register it with isv exempt, they will try anything to fail it. I tried with my car and gave them absolutely every paper necessary, plus the ones invented on the spot and nowhere written in any law! They failed the process because the process took 6 days more, the process that they made! I had no fault in this and I lost my car. Also I could have registered the car if I would pay someone 1300 euro to go behind the curtains, I didn't want it because I had everything correct. Why bribing someone would have made the process work otherwise they failed it... Corruption, stealing from their own people, disgusted
Hi,
I want to bring my 1984 Landrover Series III Santana 2,4L Diesel to Portugal, where I have bought a holiday home.
The car has a H (heritage) plate in Germany. Are there any special rules for the ISV of such a car?
Kind regards
Jan
hola, nosotros nos mudaramos a vivir en Portugal, somos argentinos. queremos comprar un vehculo en portugal y buscando opciones encontramos uno en buen precio pero aclara que no tiene inspeccin ni itv, y Coche del Reino Unido, para usar en terreno privado. se entiende que no tiene papeles me parece. eso se puede hacer el tramite para asentarlo en Portugal? conviene econmicamente el tramite? cuenta como importacin por mas que este en suelo portugus? y la ultima pregunta es si tendramos algn tipo de problema legal por adquirirlo. Gracias
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