Because of inflation, in 2023, owning a car will weigh even more on families’ pockets. It is a 4% upgrade from the ISV and IUC. The Government’s proposal in the State Budget for next year dictates that those who travel on the road will have to pay more vehicle tax and single circulation tax.
Are you going to buy a new car? Attention to ISV
If you are thinking of buying a car (and if it is your first Portuguese license plate, in case it is an imported used car), will pay 4% more ISV. It is the update proposed by the Government within the scope of the State Budget for 2023. The value of this tax may vary depending on cylinder capacity and environmental component (particles and CO2 emissions). And the larger the cylinder, the higher the tax to be paid. If you buy a diesel car with a cylinder capacity of 1,999cm3, for example, you will pay at least 250 euros more than if you had bought it this year 2022. If you are thinking of betting on an electric car, don’t have to worry about the ISV, since it is exempt. If you choose plug-in hybrids, you will have to pay 25% of the ISV (if you have a range of more than 50 km and emit up to 50 grams of CO2/km), while if you choose a hybrid you will pay 60% of the ISV. .Also read: IRS: What changes next year
If you have a car, you will have to pay more IUC
If you own a vehicle (and, of course, it is not one of the exceptions provided for by law), you have to pay the single road tax annually. The IUC depends on the category, the age of the car and the type of fuel it uses. This tax will be 4% more expensive in 2023but in practice (and in the worst case) it will represent an increase of less than 10 euros. In the case of electric cars, like this year, the exemption from payment of IUC remains.
IMT: increases limit value for exemption
In addition to taxes levied on motorists, also the IMT will undergo changes next year. The Municipal Tax on Onerous Property Transfers (IMT) is paid by those who buy a house even before the deed. And it varies according to the acquisition value of the property, and the rate to apply to this value can range from 1 to 8%depending on the location and the purpose for which it is intended.In 2023, in the case of the IMT, the 4% update is reflected in the tiers and not in the fees payable. Thus, the tax-exempt value for first-time homes passes from 93,331 euros to 97,064 euros, in mainland Portugal. The remaining tiers also advance. However, even if there is no change in the rates, in practice, who buys a house will end up paying more tax. Luís Leon, tax consultant for the consultancy Ilya, emphasizes that the explanation lies in the fact that this update is below the value of inflation, not to mention the price of real estate, which continues to rise. to have