Portuguese taxes on cars (2018)

In this page you´ll find a brief introduction to portuguese vehicle taxes.
Summary: there are two taxes, ISV, paid when a license plate is delivered and, IUC, paid annually for possessing a vehicle.

Tax principle and some history

In Portugal, cars - and other vehicles such as motorcycles, boats or airplanes - pay essentially two taxes.

One, called Imposto Sobre Veículos or ISV (Vehicle Tax), is paid only once when the vehicle gets a portuguese license plate.

The other, called Imposto Único de Circulação or IUC (Circulation Unique Tax), is paid yearly, for having a (circulation) license plate.

These taxes were implemented in July 2007, replacing "Imposto Automóvel" and "Imposto Municipal sobre Veículos", 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.

In Portugal, there are no taxes when you buy an used car - you`ll only pay the registration fee.
There are no regional taxes too.

How ISV works

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.

The math goes like this:

(engine cc * tax per cc - fixed dedutible amount)
+
(CO2 g/km * tax per g/km - fixed dedutible amount)
.

There are three tax brackets for engine displacement and six 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.

More about this: ISV tax rate tables (in portuguese).

There are several tax reductions for several types of vehicles or owners.
If you`re moving to Portugal and you bring your car with you, you can be exempt from ISV.

Some vehicles` tax calculation doesn`t consider CO2 emissions.
Hybrid or plug-in cars have a discount, electric cars don`t pay any ISV.
There is a 500€ surcharge for diesel vehicles that emit more than 0,002g/km of particles (meaning, all diesel cars without diesel particulate filter - DPF).
Other tax breaks include cabs and car rental companies. The state itself and several other private institutions or individuals (firefighters, solidarity associations, persons with disabilities, diplomatic or UE staff) don`t pay any ISV on all or some vehicles.

More about this: ISV Legislation (in portuguese).

ISV is owed for new and used vehicles. Used vehicles imported from an UE country benefit from an age discount, between 10% (up to 1 year) and 80% (more than 10 years), but only for the engine displacement tax component. Any imported used vehicle pays the CO2 tax component as if it was new - there`s no age discount.
Used vehicles imported from any other country (Switzerland or the USA for example) don`t get any discount and have to pay 23% VAT (IVA), on top of any other customs duty, which range from 0% to 10%.

More about this: ISV calculator for UE imported cars and non-UE (in portuguese).

In general, ISV lets us be one of the leading countries in low car CO2 emissions. In everyday life, we have an underpowered car fleet. Cars with between 1.0 (gasoline) and 1.6 liters (diesel) of engine displacement represent the major share of cars sold.
We pay something like 500€~1.500€ of ISV for gasoline vehicles and 2.000€~4.000€ for diesel vehicles. Contrary to what these numbers may suggest, we are a diesel nation - fuel tax (ISP) is heavier on gasoline than on diesel and, corporate tax laws give more tax deductions to diesel than to gasoline.

How IUC works

IUC, the yearly tax, is based on the same principles. More cc, more CO2, more tax to pay.
Yet, there is a major difference between two classes of vehicles. Those that were registered before July 2007, benefit from a very low tax, because IUC was implemented on that date.
Previous to IUC, average cars used to pay a yearly tax of just 10€~50€.
After IUC was implemented, this yearly tax was increased to an average of 100€~300€. The most polluting vehicles, diesel +2.500cm3 and +250g/km CO2 pay something like 1.000€ every year.
When buying or importing a car, consider those that have a low engine displacement and low CO2 emissions.

More about this: IUC tax rates tables (in portuguese).

IUC is payable up to the end of the month of the 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 Tributária (Tax Authority). However, Autoridade Tributária can and will issue a mandate to apprehend any car that is past due on IUC.

More about this: IUC FAQ (Frequently Asked Questions) (in portuguese).

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.

More about this: IUC calculator (in portuguese).

There are tax breaks for some persons (disabled) or entities (state vehicles, solidarity associations, etc.).

The IUC tax is due until one cancels the vehicle`s license plate, meaning, it´s a tax for life.

More about this: IUC Legislation (in portuguese).

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.
Moreover, you can have a 2005 car, that was imported in 2010, that will be paying 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.
The only place where you can check the portuguese licence plate date is in the DUA (Documento Único Automóvel - we have some affection for initials), the vehicle registration certificate.

Yet, the confusion´s not over. The national vehicles registry database is the one used by the "Autoridade Tributária" (Tax Authority) to notify owners and collect IUC.
Up until the tax reform, this database was a mess because there was no proper incentive or penalty to update it. Cars would exchange hands and the registry wouldn´t be updated because it would cost money, cars were scrapped and the license plate wasn´t cancelled because it would cost money. It was cheaper to avoid any new registry. So, from 2007 to today, owners that are no longer owners are getting tax notifications to pay, for vehicles that they don´t have for years.

Further reading

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.

18.12.2017. 14:20

FD em 24.09.2018. 16:00

@Chris em 24.09.2018. 15:02

CO2 emissions aren´t considered in your case, because it´s a motorcycle/motorbike. CO2 emissions are only a factor in cars.

Regardless of that fact, please be aware that, to legalize it in Portugal or in the EU you´ll need a Certificate of Conformity.
More information about this: Importação de automóveis de países fora da UE - homologação.
It´s in portuguese, it refers to cars but, for motorcycles/motorbikes, the process is the same. You can translate it using Google Translate.

Chris em 24.09.2018. 15:02

I have a 2012, Chinese manufactured, presently Cuban registered motorbike and side car. The make is Chang Jiang It is a two cylinder 4 stroke and the technology is 1940's, so the emissions will be high.

Have you any experience of anybody importing one of these?

Thank you

George Nielsen em 30.09.2016. 15:22

Could someone please explain me in detail how ISV is calculated. For a vehicle with an engine larger than 1250 cc does one have to pay €1.03 per cc for the first 1250 cc minus €740.55 and €4.84 per cc minus €5362.67 or does one have to pay €4.84 per cc minus €5362.67 for the entire displacement of the engine, plus CO2 based tax.
- In the first case for a 1500 cc engine one would have to pay (€1.03X1250 - €740.55) + (€4.84x(1500 - 1250) - €5362.67) plus CO2 based tax.
- In the second case for a 1500 cc engine one would have to pay €4.84x1500 - €5362.67 plus CO2 based tax.
Thank you.

Mo em 05.05.2015. 08:25

I recently visited Alfândega (after a random Police stop) and proove I had been here less than 6 months. I now have 1 month to decide what to do with my UK car.

Its only worth £150 so all the costs to register don't seem worth it. I was told I could either: Register it officially; remove it from Portugal; or give it to them to die in their car graveyard!

On principle I hate to see a perfectly good car go to waste. Are there any other options? Am I allowed to take it apart and sell the pieces? Can I just take it to Spain for 6 months? Can I take it off the road and use it on my private land (as a sculpture as there is no room to drive it!).

Basically if it is not a car anymore, i.e. off road and non-functioning, can I keep it? Any other ideas!!!!

Thanks!

David Martin em 17.02.2015. 10:46

I'm interested in buying in Portugal, a used van (e.g. Ford Transit or whatever) from a dealer, for non-commercial personal use. If e.g. the price advertised was €10,000 with the comment 'Deduz IVA' what does that mean I would pay? Many thanks in anticipation.

Julio em 27.08.2014. 04:07

My response to all the taxes is this - I drivea bicycle and pay no taxes!

stuart morle em 05.04.2013. 08:08

Hello,

I have been living in Portugal for three years. I wish to buy a motorbike from a friend in Italy and import it to Portugal. I can bring it here under his registration and insurance, but I am unclear about what to do when I get here as the documents will not be in my name.

Can anyone kindly help me?

Thank you!

Stuart (stuartmorle@gmail.com)

peter em 07.02.2012. 18:47

Funny no one says anything about the tax. ISV is illegal under the EU's first rule that states that no goods within the EU may be taxed two times, Portugal is doing it with this tax,ISV. All used cars are understated in the country they were purchased for the first time,,, This tax, ISV is also discrimination against the portugues people when they can not afford imported cars, which all the citizens of other EU countries can do

José Carlos Sanches em 07.03.2011. 17:17

PB, it will be best to contact some agency who is abble to answer to your doubts. I don't think that you need the "law" it self, but if you ask your doubts it will be better.

Cumprimentos
José Carlos Sanches
www.autodoc.pt
Documentação Automóvel desde 1994
Lisboa/Setubal

PB em 06.03.2011. 14:22

Many thanks for these useful informations. Could someone please provide the official portuguese text of law (link ?) saying that citizens of other countries who are bringing their own car are exempt from paying the ISV (provided they meet the 3 conditions at the top of this page) ?

Many thanks.

PB em 06.03.2011. 14:20

Many thanks for these useful informations. Could someone please provide the official portuguese text of law (link ?) saying that citizens of other countries who are bringing their own car are exempt from paying the ISV (provided they meet the 3 conditions at the top of this page) ?

Many thanks.

carlos em 18.05.2010. 18:14

I would like to know how much i will pay to regester a BMW 320D from 2005.Im planning to go back to portugal in 2 years time, ive been in the UK now for 5 years and would like to benifit from the imigrant status. What do i need to get the required documents.

Thank you

kim howard em 13.04.2010. 09:13

hello,
i am moving to faial, azores with my girlfriend and we both are bringing a car. i have owned my car for longer than 12 months and bought it in germany. my car should be exempt from taxes and considered to be moving goods- is that correct?

the other car is a
ford TTS / LKW e plano Diesel
erst zulassung/até aprovação - 21.12.2009
hubraum/capacidade - 2496cm3
CO2 in g/km - there are no values written in the papers
the cost of the car - €1300,-
2 seats

would you please help me figure out the cost? i am not sure under which table to use. thank you for your help,
kim howard

Daniel em 23.01.2010. 00:19

Hi,
I live in the USA but I'm thinking of moving to Portugal and sending a car with me, do you know what is needed?
Thanks

Charlie em 29.12.2009. 14:22

"As a tourist, you may keep your vehicle in Portugal for a maximum of 180 days in any 12-month period provided it is for your own private use and you do not loan it to anyone else during that period. Do not depart leaving your vehicle unaccompanied. If you do, you may be subject to a fine...."

The above is taken from the Foreign office website advice to british citizens driving in Portugal. My situation is very similat to that of Miles (10.04.08) and what I would like to know is; what does 'unaccompanied' mean? While I am out of Portugal, the vehicle will be stored in a private garage. Does this count as unaccompanied?

Regards

Charlie

Petros em 28.07.2009. 17:38

Hi, i have just found a car of 1996, CC 1.400 that i wanna buy here in Oporto. I was wondering how much taxes I should be calculating to pay per year because I have heard something about increasing fo cars before 2000.

Thank you in advance

Marco em 22.04.2009. 13:29

Hi, I'm living and working in Portugal since 2005 and was driving my car with a german number plate, which was certainly not correct.

In Feb. the GNR knocked on my door. They blocked the car and fined me with € 170 which I've paid already. Now I have to legalize the car and went to the "alfandega". They said my possibilities are legalize for € 5.400, export or abandon. Since the car is from 1999 it's not worth to spend cash on it. Question: do I have any chance to legalize it without paying taxes???? Tx, Marco

Dirk Elias em 01.03.2009. 13:40

Hallo,

I moved my residence from Germany to Portugal and we (my wife & me) brought our cars, that both are more than 15 years old and we own them for more than 2 years.
We had no problem NOT to pay the ISV, but now we are asked to pay the IUC as if the car would be new (although a Portuguese, that would own the car for the same period would be taxed based on the old system)

As we did not buy an 'used imported' car and just changed residence, we feel this to be very unfair.

In the 'Certificado de Matricula' it is also correctly mentioned the date of the 'primeira matricula' (1985 & 1990) and of course we are able to proof, that we had the cars before July 2007 (change of the IUC handling) licensed to our names in Germany.

As we plan to live here for a longer time, I would not mind to go to court (breaking of EU lwas with regrads to freedom of movement an/or equal treatment), but of course if there is an argument, that can convince the 'Financias' without, I would prefer...

Cheers

Dirk

Barry Henderson em 18.02.2009. 00:00

My wife and i now live in portugal. We have owned an apartment in portimao now for 2 years. We are british but own a spanish registered motor home, (spanish plates) We have the motor home parked at our apartment and we are worried the police will impound the vehicle if we drive it . Could it be isv exempt. We own a portugese registered car. We would like to use the motorhome what should we do.

Rob em 24.01.2009. 16:44

@ John Sullivan.

As your posting is from 10/2008 you already know by now how much ISV you would have to pay for your 9 years old Honda Prelude.
Nevertheless, I made the calculation for you and it would be approx. €8500. I consider that as a lot of money for that car.
(I did the calculation for a Honda Prelude MY 2000 ; 1997 cc ; CO2 emission 220 g/km)

Rob em 24.01.2009. 16:25

@ Ronald.

It makes a lot of sense what John Sullivan said. If a EU-citizen changes his residence from one EU memberstate to another he doesn't has to pay the ISV. Of course there are a lot of conditions but one of those is, that the car you're importing must have been registered in your name for at least 12 months counting back from the date you become resident in Portugal.
From 010109 importing a car in Portugal became VERY expensive because the government did find a really briljant way to calculate the ISV you have to pay. Even for a car from 9 years old as John's is !
By the way I'm not a native (English) speaker but I gave it my best. ;-)

Ronald em 09.01.2009. 00:58

What a shame. Maybe someone else can post a comment clarifying this statement from above which makes no sense to me:

"Used vehicles imported from any Country pay ISV. When imported from an European Union Country there is a discount given based on age, the older the bigger discount. Starting July imported used vehicles will pay exactly the same IUC that new vehicles pay. This is an "effort" of the government to reduce the import of used vehicles (much more cheaper than new vehicles)."

= The discount for used, imported vehicles from the EU goes still (in 2009) up to 6years/52%.
= As far as I understand this, ALL vehicles in P, whether imported or not, uswe or new, pay the yearly road tax IUC, which is fixed.

So what's the big difference? How will the efforts of the government affect in any way the importation of used vehicles?

John Sullivan em 29.10.2008. 20:53

Hi
I have been resident in Gibraltar for the last 15 years and was going to buy a car here and take it with me when I retire to Portugal approximately July/August next year. Having been informed of your excellent website it appears that this is not now possible as I would have not had the car for 12 months. I will now have to use my present car which will be 9 years old when I move to Portugal, it has a 2 litre petrol engine (Honda Prelude) Could you please give some idea how much it will cost to bring it into the country. Unfortunatley my command of Portuguese is not good yet so I am unable to use the tables for calculating the costs involved. I notice in one of your answers you mentioned an "Agência de Documentação" Would one of these "agencies" be able to help me with the paperwork importing the car? My plan now after the 12 month period is to sell my old car and buy one in Portugal.

This is a really good website for people in our position, keep up the good work.

Thanking you in advance.

John Sullivan

Millie em 18.09.2008. 22:39

Hi Doug,

I've been waiting for a reply from this site for months - shame, they used to be so quick and friendly - I would say for sure that your MoT from Portugal is not valid for insuarace purposes, or driving. Safest bet must be get a UK ticket! That said, if you get favourable reply from DVLA, please post here!!!!

Good Luck,

Millie

doug em 14.09.2008. 19:18

Would you know is Portuguese MOT is valid in UK ?

I was in Portugal with my car between Feb 08 and May 08 and my UK MOT was expiring on 06th March and I simply went to Portimão MOT station and put my vehicle through. Now I am back to UK and I emailed and Faxed my question to UK Dvla but still no reply from them two weeks later

doug em 14.09.2008. 19:16

Would you know is Portuguese MOT is valid in UK ?

I was in Portugal with my car between Feb 08 and May 08 and my UK MOT was expiring on 06th March and I simply went to Portimão MOT station and put my vehicle through. Now I am back to UK and I emailed and Faxed my question to UK Dvla but still no reply from them two weeks later

Millie em 17.07.2008. 23:18

Hello,If I move to Portugal, import my car, and qualify for tax exemption because of my previous EU residency, what happens if I want to buy a new car, and sell the car I imported?? Can I do this without penalty?? Thanks.

FD em 02.06.2008. 10:05

The table B is applicable to two types of vehicles:
- new cars that don't have CO2 emissions homologation (vans, etc.)
- imported cars which first registration in the country of origin was before 1970

Paul em 28.05.2008. 21:51

Hi,
Thanks for the reply. What does table b refer to, please? Just commercial, or non homog. as well?
Esta é a tabela B, aplicada a todos os veículos cujas emissões de CO2 não estejam homologadas, nomeadamente todos os veículos comerciais sujeitos ao imposto

FD em 28.05.2008. 10:41

Reply to R van der Heijden em 28.05.2008. 00:31:

There are two distinct situations:

- people that bought a (new/used) car before July 1st 2007, beginning January 1st 2008 have to pay the IUC on the license plate month or date of 1st registration in Portugal (if they don't coincide).

- people that bought a new car from 1st July 2007 forward, have to pay IUC for the first time (only) up to 90 days counting from the date of the license plate and every succeeding year on the license plate month.

I hope that was clear.

FD em 28.05.2008. 10:29

Reply to Paul em 27.05.2008. 18:41:

You have to pay ISV accordingly to the engine displacement and CO2 emissions.
When inspected, as part of the legalization/registration process, the CO2 emissions will be measured/analyzed and the result will be used to calculate the payable tax amount.

Being an older vehicle, with a large engine displacement, you can expect a high CO2 value so, be aware that the tax amount will be substantial.
You can find the current rates here (first two tables): https://impostosobreveiculos.info/tabela-imposto-sobre-veiculos/

Imagine that the car's CO2 emissions are 300g/km (not unusual). Just for your reference, you would have to pay 4621,50€ just for the ISV.
Don't forget the annual tax, the IUC, which would be, using the above values, 561,60€/year.

R van der Heijden em 28.05.2008. 00:31

Dear FD,

On this site I have read the following

Se comprou carro a partir do dia 1 de Julho de 2007 tem a partir de agora as seguintes obrigações:

• pagar o IUC num prazo máximo de 90 dias após a data da matrícula
• pagar o IUC todos os anos no mês da matrícula do carro

"They" told me that, since the 1st of January 2008, you have to pay the IUC in the month
that is mentioned on the Livrete or the Certificado de Matrícula.

Please help me out because I don't understand what's the difference between the two options mentioned above.

Best regards
Rob

Paul em 27.05.2008. 18:41

Hi,

I would like to import an older car, 3000cc, from 1979. The car has no record of CO2 emmissions.
Would the ISV calculation be, for 2008:
3000xEur 9.25 x 20% then deduct 9199.88?

Thanks in advance,

Paul

FD em 16.05.2008. 10:13

As long as the driver and owner doesn't work, earn any money, or reside in Portugal for more than 183 days per year, you can drive a foreign car without any problems, considering it's legal in it's country of origin - MOT certified, insurance, etc.

If the car stays in Portugal for more than 183 days per year, you'll have to pay IUC, the portuguese annual road tax. It's based on engine displacement and CO2 emissions.

You can drive it from the garage to your property without any problems as long as the above conditions are met.

For you to be able to drive it without any restrictions in Portugal, you would have to legalize it, but the cost of that procedure, specially in this case because of the vehicle characteristics (pollution and engine capacity), is absurd. You could expect to pay around 5.000€ just to get license plates, and around 550€ every year for road tax (IUC). With 550€ you can rent a new car almost every time you come over here.

From July 2007 forward, the road tax (IUC) is payable by every newly registered/legalized car, be it manufactured in 1900 or in 2008, they pay exactly the same. It's this way to prevent the import of "european junk/scrap" as the government puts it.

Ray em 12.05.2008. 16:43

I have a 21 year old Range Rover which decided to retire in Portugal August 2006.It broke down on private property and was then taken by transporter to a garage. They think they have fixed it but advise against s trip back to England. I have declared a SORN in England when the UK tax ran out but need to know what to do now we know it is not returning. We have property in Portugal where it would make a good air conditioning unit[!] and possibly be a run-about to the local shops. What is our situation re tax please with either option?
If it is taken by car transporter from the garage to our property without any Portugese tax having been paid is that acceptable within the law? At what age does tax cease to become payable? Finally if we do manage to become roadworthy how much is the tax likely to be [3.5 engine] Many thanks RD

FD em 29.04.2008. 13:05

The law that regulates what you're asking is "Lei 22-A/2007", look for Capítulo V Regimes Suspensivos (page 4164-(13) - PDF 12/29). You can find here: https://www.dre.pt/pdf1sdip/2007/06/12401/00020030.PDF

Relatives: partner (wife, husband, etc.), first degree ascendants (father, mother) and descendants (sons). To my understanding, as to what this law concerns, father-in-law isn't considered a relative, but I think when in the presence of both you shouldn't have any problems with police authorities. Regarding this, you should read nr. 2, 30th article of the forementioned law.

As long as you're a portuguese resident you can't drive any foreign car in Portugal, even in the situation you're referring to.

Alex em 27.04.2008. 13:42

Hi,

I read your reply to Maxine and have a few questions of my own.

Can you please give me the reference of the legislation that forbids Portuguese residents from driving foreign registered cars, please.

Secondly, could you define relative. For example, is father-in-law a relative – my wife drives her Fathers car, may I, as a Portuguese resident?

Finally, can you confirm that it is permissible for a Portugeuse Resident to use a foreign registered car provided by an employer, if that car is used essentially for business.

Thanks for your help.

FD em 22.04.2008. 10:59

If you stay more than 183 days per year in Portugal - like you say you do, from what I'm understanding - by this law, you're considered a portuguese resident. Therefore, you can't drive any vehicle with a foreign license plate, exactly like any other portuguese resident.

Even if you spent less than 183 days in Portugal, as long as you earn money or work in Portugal, you're considered a resident too.

Furthermore, only relatives of the foreign vehicle's owner can drive it, unless it's a lease or a rental.

Maxine em 18.04.2008. 11:01

Bom Dia,

My friend lives in England, when he comes to visit me, may I drive his English registered car – I am Portuguese/English resident, but with a UK driving licence, because I spend four months every year in England.

I’m a bit confused, I don’t want to be in trouble.

Obrigada,

Maxine

FD em 15.04.2008. 10:37

You can leave your british car here for 183 days (consecutive and/or non consecutive) without any tax/legal concerns. As long as you don't work or earn money in Portugal you're completely legal. If you pass the 183 days mark you're required to pay a tax called IUC, which is payable at the tax office (Finanças). This tax is based on your car's engine displacement and CO2 emissions - you can find the current rates here:
https://impostosobreveiculos.info/iuc/tabela-imposto-unico-circulacao-2008/

The auditing of this time period is done on road by two authorities - GNR (a kind of military oriented police present on small or rural cities and responsible for most road vigilance - white, green and orange stripes cars) or PSP (ordinary police - white and blue/red stripes cars).

This is off the record but, usually, you shouldn't be worried about this as your profile doesn't fit the ones the police is eager to inspect.

Happy holidays! ;)

Miles em 10.04.2008. 12:37

Hello,

I live in the UK, and I’m lucky enough to be able to holiday in your beautiful Country four or five times a year for three or four weeks at a time.

I drive down when time is available for a leisurely journey, (if my health allows), and for my other visits I fly.

My question to you is this: may I leave a UK registered, UK Tax/Insurance/MoT’d car in Portugal for my use two or three times per year? Returning with it to England at least once per year? Or is there a limit for the time my car can stay in Portugal?

Wish Best Wishes,

Miles

FD em 08.04.2008. 11:36

Reply to Paul em 06.04.2008. 10:28:

Thanks. :)

In order to be ISV exempt you must provide the portuguese customs office a declaration from an official entity of your country of origin, that proves that you've been a resident in that country. This declaration should mention the date when you were first registered as a resident and the date when you ceased to be a resident. The car's registration title must coincide with those dates.

The exemption is given per person.

As for the previous exceptions given to "classic" vehicles, you're absolutely correct. Be the car's year 1971 or 1997, the tax calculation formula is exactly the same.
Please notice that to cars registered before 1970 you don't have any "reduction", simply put, the tax calculation formula is different because of CO2 emissions, nothing more - there is no "classic" car status regarding ISV tax.

Paul em 06.04.2008. 10:28

Hi,

Let me say what a fantastic site this is, it is an immense help.

Just a few questions:

Your comment em 11.01.2008. 10:10

The law, as strange as it may seem, doesn't set a time limit for a ISV exempt request when you move to Portugal.
To clarify with an example please. If I move to Portugal this year, and in two years time decide import a vehicle, does the 12 months ownership period commence on the date I apply for the exemption, or the date I register in Portugal?
Is the ISV exemption per person, or per household?
Until recently concessions were available for cars over thirty years old. Now I see a reduction available only for cars registered before 1970. Is correct that from now a car registered in 1975, for example, is simply a car over 10 years old for all tax calculations, without any concessions?

Many Thanks in Advance,

Paul

FD em 11.03.2008. 12:43

Reply to floydborga on 07.03.2008. 20:55:

The discount for cars imported from a third country outside UE is always 10% as long as it's at least one year old.

When using the simulator, just input in the age field "Sim" right next to "De 6 meses a 1 ano (6 meses a exactamente 1 ano)" - every car imported from a UE country with that age has the same discount (10%). That way you can use it to calculate the tax amount for cars imported outside the UE.

The alternative method isn't applicable to cars imported outside the UE.

And remember that, in addition to the ISV, you'll have to pay IVA (VAT - value added tax) at the current rate of 21% and the customs tax (10% if I'm not mistaken). The IVA amount is calculated regarding the value of the car, plus the ISV amount, whereas the customs tax is only calculated regarding the car's value.

floydborga em 07.03.2008. 20:55

This site, although informative, is not very clear on total "Imposto" for cars imported from a country other than the EU. From what I understand, the simulator is prepared to calculate the total "imposto" for cars imported from the EU(correct?). I also understand the for cars imported from a country other than the UE, the discount rate for the method "normal" is a straight 10% no matter what the age of the car(correct?). So the formula would be =IF(B25="Sim";SUM($C$13;$C$15;$C$16;$C$18)*.10;0) correct?(I think you should add a line in you simulator for this rate). This of course would make it very expensive. So, would it be appropriate/legal to apply the method "alternativo" for cars imported from outside the UE?

FD em 22.02.2008. 15:54

Reply to D W Taylor em 19.02.2008. 12:41:

Unfortunately, the situation you describe is very common these days. The tax principle changed from circulation to property, where before 2008 if you didn't drive your car you could not pay the tax. But, 2008 forward, even if you don't drive your car, you must pay the tax. This has caused a problem with vehicles which property registration wasn't updated when sold. So, you are in debt of a vehicle that you don't own.

There are two ways to solve this:

- if you sold the car before October 31st 2005, you can register the car in the buyer's name. For this you'll need a "Declaração" like this one:
https://impostosobreveiculos.info/declaracao_venda.rtf
Then, you should go to the Conservatória do Registo Automóvel (https://www.rnpc.mj.pt/contact/endauto.asp), fill the Modelo 2 and deliver both. You'll have to pay 20€ for each vehicle. About 30 days after, the property registration will be regularized and you won't have to pay any tax.

- if you sold it after October 31st 2005 (or you don't remember the buyer's name, address, etc.) you must go to the IMTT (https://www.imtt.pt/imttcont.htm) and require the arrest of the vehicle so that the property registration can be updated. This could take years and until then you'll have to pay the due tax every year.

FD em 22.02.2008. 15:36

Reply to R van der Heijden em 19.02.2008. 12:38:

The transitional article to which this situation refers is:

Artigo 13.º
1 — Com a entrada em vigor da presente lei, são revogados:
(...)
c) O Decreto-Lei n.º 471/88, de 22 de Dezembro, com excepção do disposto na alínea c) do artigo 2.º, que se mantém em vigor até 31 de Dezembro de 2007;

That translates:

Article 13.th
1 — With this law, the following laws are revoked:
(...)
c) The law-decree nr. 471/88, dated December 22nd, with exception to the applicable by the point c) of the 2nd article, which is valid until December 31st 2008.

The forementioned c) point refers to:

c) Been effectively affected to the use of the interested in the country of origin for at least six month before the residence transfer.

You can find this law-decree (471/88) here:
https://www.dre.pt/pdf1sdip/1988/12/29400/50605061.PDF

The point where is decreed in the new law that the vehicle must be ones property for at least twelve months is this:

Artigo 60.º
Condições relativas ao veículo
(...)
c) Ter sido propriedade do interessado no país de
proveniência, durante pelo menos 12 meses antes da
transferência de residência, contados desde a data da
emissão do documento que titula a propriedade ou da
data em que celebrou o contrato de locação financeira,
se for o caso.

That translates:

60th Article
Vehicle requirements
(...)
c) Must have been property of the interested in the country of origin for at least 12 months before residence transfer, counted since the date of emission of the vehicle's title of registration.

If the legalization process entered the alfândega before December 31st, to my understanding, your friend should not pay the tax. But, if he begun the residence transfer process before December 31st and contacted the alfândega after December 31st he should have to pay the tax.

D W Taylor em 19.02.2008. 12:41

Hi,on going to pay my road tax I was presented with a sheet of paper saying I had another two cars which have both been sold some time ago,one 3years & the other at least 5 years,unfortunately I have no proof of these sales & can only remember one persons name.Dave.

R van der Heijden em 19.02.2008. 12:38

Dear FD,

Your answer from 31.01.2008. 11:58 was very clear but... now it seems that the Alfândega still wants my friend to pay the ISV.
In the mean time I have tried to 'understand' the Lei No0 22-A-2007, de 29 de Junho (ISV and IUC) but that's still to difficult for me. Can you please tell me where I can find the 'some transitional articles' as mentioned in your answer from 31.01.2008. 11:58

With best regards
Rob

FD em 12.02.2008. 09:20

No. You must own the car that you want to bring to Portugal for at least 12 months as you were told at the Alfândega. Sadly, there's nothing that you can do to avoid the tax.

KK em 08.02.2008. 13:59

I have bought a new car in my country (European Union) in December 2007, and for personal reasons now moved to Portugal (forever), so the car is like 3 months old. I got to know from Alfandega that i need to have the car in my country for at least 12 months in order to be excluded from the tax. Is it still possible for me to avoid this tax or not really ?

Thanks!

FD em 31.01.2008. 11:58

In the new law there were some transitional articles, and among them the issue that you bring here was one.

The law became valid July 1st, but regarding the exemption due when a citizen transfers his residence to Portugal, in which the vehicle should be his for at least 6 months, the new period, of 12 months, only became valid January 1st.

So, if your friend transferred his residence to Portugal and began the registration/legalization process up to December 2007, he would be required to have his car for at least 6 month. But, if he began the legalization/registration process in January 2008 the time required was no longer 6 month but 12 month.

I think I was clear, if not please say so. :)

R van der Heijden em 30.01.2008. 14:30

Dear FD, reply to your answer 30.01.2008 11:02

"If you could contextualize your question I could be more useful"

Ok, to be more specific. My friend started the import of his car somewhere between August 2007 and January 2008. At that moment he was told that the car had to be registered at his name for at least 6 month in the country of origin. Now (January 2008), áfter finishing the proces, he has been told that he has to pay the ISV (€ 10.000 !) because the new law on the ISV already was validated in July 2007 instead of January 2008.

FD em 30.01.2008. 11:02

Reply to R van der Heijden on 28.01.2008. 23:24:

The law comprises two different taxes: the ISV and the IUC. The ISV is payable upon the first registration/licensing. The IUC is payable every year.

In July 2007, the law (both ISV and IUC) became valid to every vehicle registered from that moment forward. In January 2008, the law, comprising only IUC, became valid to all vehicles, including those registered before July 2007.

If you could contextualize your question I could be more useful.

FD em 30.01.2008. 10:46

Reply to John Fripp on 28.01.2008. 21:49:

These were the intentions behind the new system:

- reduce the load on the tax system caused by paying in a specific period of the year: the queues at the tax offices were huge and the computer network was overloaded becoming many times unusable
- transfer the responsibility of tax supervision from the police authorities to the Ministério das Finanças (Ministry of Finances)
- by basing it on property and not on circulation it's much easier to find out who isn't paying, therefore, on site tax supervision (on the road) is almost not needed

So, with this new system, it's the understanding of the government that the police function is to watch for our safety and not to check if we pay or we don't pay our taxes. That's a job for the tax collectors, the Ministério das Finanças (Ministry of Finances), not for the police. Nonetheless, police authorities can continue to monitor tax payment on the road.

R van der Heijden em 28.01.2008. 23:24

Dear FD,

As a reply on your answer off 21.01.2008. 11:23 the following question.

Today a Dutch friend of mine was told that he had to pay the ISV because the law on the ISV already has been changed in June 2007 and not in January 2008 !.
Please advise me on this and, very important, something I can refer to if it turned out to be that the information that has been given to him, is not correct.

John Fripp em 28.01.2008. 21:49

As a retired British police officer living in Portugal, I was impressed by the old system of paying vehicle tax. There was no doubt as to the legality of a car with regard to documentation, the vehicle tax, insurance cover and MOT were all displayed in the windscreen. The vehicle tax was uniform, as all vehicles had to be taxed between 1 June and 31 July and the annual tax stamp was there for all to see. I cannot see any advantage with regard to the new system introduced on 01.01.2008, can you explain the thought behind this new system, the GNR and Traffic police must be pulling their hair out as they no longer can make an easy check of parked vehicles that are unattended

FD em 25.01.2008. 09:40

If the car is left in Portugal for more than 183 days in each year, you have to register it (legalização). This procedure has a cost that depends on your car's engine displacement (cc/cm3), CO2 emissions and age.

Furthermore, you'll have to pay IUC, the annual tax.

You can do a simulation of how much you'd pay here:
https://impostosobreveiculos.info/isv/simulador-ultra-rapido-isv-2018/simulador-online-isv-20072008-importados-usados/

For your convenience:
Gasolina = Petrol/Unleaded
Gasóleo = Diesel

Where you see "Mais de 1 a 2 anos (1 ano e 1 dia a exactamente 2 anos)" it translates as: More than 1 to 2 years (1 year and 1 day to exactly 2 years).

The total amount to pay is seen bellow at "Total Impostos (ISV+IVA caso aplicável)", consider the second column value, the first one was for 2007. Below, "Imposto Único de Circulação" is the value of the annual tax.

To register it you'll have to go to 3 different offices, Centro de Inspecção (the same procedure as UK's MOT), Alfândega/DGAIEC (customs) and IMTT (UK's DVLA).

I think it is best for you to contract a "Agência de Documentação" as the task may be daunting at some point. You can search for one here: https://yellowpages.pai.pt/ (Yellow Pages).

Documents: original vehicle registration certificate and or other document that clearly states the vehicle's mechanical characteristics and the owner, and in some cases the COC (Certificate of Conformity) or UK's Homologation Sheet.

Steve Salter em 24.01.2008. 08:13

I own a holiday home in the Algarve,I would like to bring one of my cars from the UK for use when I am there,it would be left in Portugal.Do I have to register this car in Portugal?How do I pay the tax?What documents do I need?

FD em 21.01.2008. 11:23

The six month period was valid in the previous law. In this new law (and since January 1st 2008) it was updated to twelve months.

So yes, if you want to be exempt from ISV when moving to Portugal your car must be registered in your name for at least twelve months.

My portuguese is better than my english. :D

R van der Heijden em 19.01.2008. 12:06

As far as I know one need to prove that the vehicle to be imported into Portugal must have been registered at your name at least for six months in the country of origin. This to get an exempt for the ISV.
Now I have heard rumours that this period has been changed to 12 months.

Is that true or is it just a rumour ?

By the way I'm not a native speaker. I'm Dutch but at the moment my English is better than my Portuguese ;-)

FD em 18.01.2008. 12:20

For what I'm aware, there will be no notice for payment sent to your address. You'll have to take initiative to pay the tax by yourself.

Since January 1st 2008, the tax stamp ceased to exist. Replacing it, you'll need to have two "documents" in your car: DUC (Documento Único de Cobrança) - the sheet of paper that you print in your computer with the information about your car and the payment methods available (obtained from https://www.e-financas.gov.pt), and the receipt of that payment (from the ATM - Multibanco, Correios, Bank, etc.).

If you prefer, you can pay directly at any Finanças service, be sure to take with you the car documents and your Número de Contribuinte.

Christine Vincent em 18.01.2008. 12:05

Many English and Portuguese people I have spoken to did not know of the new road tax rules. Will people receive notification that the car tax system has changed or a letter to remind them to pay the new tax in the month of their car registration?
Do you still get a road tax stamp?

FD em 14.01.2008. 14:40

I don't quite understand what you mean with pro-rata in this case, but yes, you'll have to pay it during March.

The tax is due for a full fiscal year, but it's only payable in that period.

Ann Denton em 11.01.2008. 19:55

Regarding the new road tax rules, our car was first registered in March 2003. Will we have to pay this coming March (we have paid one year's tax in July 2007) and will it be a pro-rata charge in the first instance?

FD em 11.01.2008. 10:10

Thanks. :)

The law, as strange as it may seem, doesn't set a time limit for a ISV exempt request when you move to Portugal.

Nonetheless, you say you'll be here for at least two more years. Are you on a time limited mission or something equivalent? In that case you don't even need to change the license plates to drive in Portugal. You can benefit from a special condition called "Admissão e importação temporária" (admission and temporary import).

Whenever someone moves to Portugal for a time limited mission, be it a job, studies or something alike, all you need is to prove that you'll be here for a determined period and that you'll return to your country. Is this the case?

J. F. em 10.01.2008. 11:58

Hi,

I have a car I bougth a couple of years ago, and later I moved to Portugal. I have been living and working in Portugal for two years, and I will be here at least for two more years. When I first moved, I did not need a car in Portugal, but now it can be useful. Can I still take it to Portugal and avoid paying the ISV? In principle I fullfil the requirements displayed above:
- I have lived in other country my whole life before moving to portugal (more than 12 months), but I have been living in Portugal the last 2 years.
- I have more than 12 months of driving experience and I am above 18.
- I am not selling my car for a long time.

Do I have to go to Alfândega and ask there? Which documents should I take with me?

Thanks, and congratulations for the nice site.

FD em 01.08.2007. 18:18

You should've payed the tax between 1st June and 31st July.

As of now, you must go to a tax office (Finanças) near you and pay the tax. Take with you your "número de contribuinte" and the car's documentation (DUA - documento único automóvel). To pay at the tax office choose the "Tesouraria" queue.

George em 01.08.2007. 17:24

I bought my 1999 used passenger vehicle in August 2006. The dealer said that my registration was current. I have a "06" for the year on the IUC stamp. It is now August 1st. Some of the information I've looked at mentions a July 31st cutoff for paying the annual tax. What do I need to do to make this current, if anything?

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