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Taxis and TVDE: what’s changing?

The legal framework governing the paid carriage of passengers in vehicles booked via electronic platforms (TVDE) was amended by Law No. 59/2026 of 25 August, which came into force on 1 September 2026, without prejudice to the need to regulate and adapt some of the mechanisms provided for in the new law.

The main change is that vehicles licensed for taxi operations may also be registered to provide TVDE services, provided they meet the requirements applicable to vehicles used for this activity and are registered with a licensed electronic platform operator.

The new regime will allow the same vehicle to be used, at different times, to provide both Taxi services and TVDE services. The decision to designate the vehicle for TVDE operations rests with the holder of the relevant license and does not, in itself, entail the loss or suspension of the taxi license.

This change does not, however, remove the distinction between the two regimes. This means that, when a vehicle is providing a TVDE service, it will be subject to the specific rules governing this activity; in particular, it may not pick up passengers on public roads upon request or use taxi ranks.

The new law also introduces a number of changes to the conditions applicable to TVDE vehicles, notably setting a limit of 10 years from the date of first registration for the age of vehicles, whilst allowing a maximum age of 12 years for fully electric vehicles.

The new regime also provides for a non-removable identification plate, issued by the Institute for Mobility and Transport (IMT), featuring anti-fraud security features and linked to the vehicle’s registration.

As for new TVDE drivers, a minimum of 50 hours’ initial training, comprising both theoretical and practical components, followed by a final examination, is now compulsory. This training will also include an assessment of functional proficiency in the Portuguese language appropriate to the performance of the role.

The law also provides for the creation of an electronic data-sharing platform, managed by IMT, designed to strengthen the supervision of the sector and combat the irregular provision of services. This platform will enable the cross-referencing of information relating to operators, drivers, vehicles, insurance, inspections and licenses, allowing access by various public bodies, namely IMT, the Mobility and Transport Authority, the Tax Authority, Social Security and the and the security forces.

Also worth noting is the possibility of video recording inside vehicles, subject to the express consent of the driver and passenger and without sound recording, as well as the lifting of the ban on advertising on TVDE vehicles, which will now be permitted under conditions similar to those applicable to taxis.

The integration of taxis into the TVDE regime has been contested, in particular by associations representing the sector, which point to potential competitive impacts and challenges in reconciling the public service obligations inherent to taxi operations with the TVDE regime.

Law No. 59/2026 thus brings the taxi and TVDE regimes closer together, creating opportunities for operating the service without disregarding the specific characteristics and obligations inherent to each scheme.

 

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Lisbon-Porto-Algarve

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