In Portugal, it is applied the Vehicles tax (ISV) and the Single Transit Tax (IUC) However, citizens wishing to transfer their residence from one Member State or other country to Portugal may benefit from exemption from ISV under certain conditions and limitations.
The above 18 years of age that have resided in a Member State of the European Union (EU) or other country for at least 12 months, they are entitled to drive for a minimum period of residence in the country of origin, and transferring residence to Portugal, can benefit from ISV, provided that the following conditions are met:
- With regard to the conditions attached to the residence in the country of origin, the applicant must provide proof of residence in another EU Member State or other country for a period of 12 months, consecutive or, if that country be in force stay restrictions and respective transfer to Portugal;
- For calculating the period of effects of 12 months of residence in situations where the country of origin establish stay restrictions, and the residence was fixed by non-consecutive periods, it has the total length of stay in the country on the basis of certificate issued by the competent consular authority and may not each period be less than 183 days per calendar year.
Note: It is not considered resident in another Member State or other country, people who are abroad for study, internships or execution of fixed-term functions up to two years.
Whenever there are no legal assumptions inherent in the ISV exemption scheme at the time of transfer of residence to Portugal, or temporary admission regime, the entry of a taxable vehicle in Portugal is taxable event, being the vehicle subject to the payment of ISV.
The Circulation Transit Tax focuses on:
- Vehicles of categories A, B, C, D and E - covering virtually every type of motorized land vehicles;
- Vehicles of category F - of particular use recreational craft;
- Vehicles of category G - private use of aircraft.
Portal das Finanças - http://www.portaldasfinancas.gov.pt
Source: Ministry of Finance
