During his annual speech at the Thessaloniki International Fair, Greek Prime Minister Kyriakos Mitsotakis announced a 30% reduction in VAT for remote islands with populations under 20,000.
Under the new measure, the standard 24% VAT (Value Added Tax) rate will drop to 17%, while the 13% rate will fall to 9% in the eligible areas.
Islands Eligible for the VAT Reduction
The government confirmed that the following remote Greek municipalities will benefit from the reduced VAT regime:
- Municipality of Leipsoi – 778 residents
- Municipality of Tilos – 746 residents
- Municipality of Agathonisi – 202 residents
- Municipality of Halki – 475 residents
- Municipality of Megisti – 584 residents
- Municipality of Kalymnos – 17,752 residents
- Municipality of Nisyros – 1,048 residents
- Municipality of Patmos – 3,283 residents
- Municipality of Symi – 2,603 residents
- Municipality of Karpathos – 6,567 residents
- Municipality of Kasos – 1,233 residents
- Municipality of Astypalaia – 1,376 residents
- Municipality of Lemnos – 16,411 residents
- Municipality of Agios Efstratios – 257 residents
- Municipality of Ikaria – 8,843 residents
- Municipality of Fournoi Korseon – 1,343 residents
- Municipality of Oinousses – 911 residents
- Municipality of Psara – 420 residents
- Municipality of Samothrace – 2,596 residents
Benefits for Residents and Local Economy
The VAT cut is expected to lower costs on food, essential goods, dining, tourism services, and products like medicines and books.
Officials also anticipate that the measure will strengthen the competitiveness of local businesses and the tourism sector, sending a clear signal of support to communities sustaining Greece’s most sensitive and remote regions.
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