Every year, many taxpayers receive a payment notice for the Imposto Único de Circulação (IUC) on vehicles they have already sold, simply because the buyer never updated the vehicle registration. It is a frustrating situation, which for years the Portuguese Tax Authority (AT) treated as normal.

In November 2025, the Constitutional Court sided with the taxpayers in this position, ruling that the Tax Authority's interpretation is unconstitutional.

In this article by Igor Santos, we explain what was decided, what mechanisms are available to challenge the charge and recover tax already paid, and which documents you should gather to safeguard your position.

To access the full article, please download the PDF below. For further information, contact us at geral@ammoura.pt.