Prime Minister Kyriakos Mitsotakis has announced a 30% reduction in Value Added Tax (VAT) for Greece’s small border islands with permanent populations under 20,000. The move extends a special tax regime that until now applied only to five islands — Leros, Lesvos, Kos, Samos, and Chios.
Under this system, VAT rates are already significantly lower:
- 17% instead of 24%
- 9% instead of 13%
- 4% instead of 6%
This makes both essential goods and services more affordable for residents.
Mitsotakis said the measure aims to support island communities facing challenges of remoteness and population decline. “We owe something to our islanders, who raise the Greek flag on the edges of the Aegean every day,” he noted, adding that the policy fully complies with limits set by European legislation.
Expanded coverage
The new VAT reduction will now cover dozens more islands across the North Aegean, the Dodecanese, and other frontier regions — from Lemnos to Karpathos and from Samothraki to Kastellorizo.
The following islands are now included: Lemnos, Ikaria, Fournoi Korseon (Fournoi, Thymaina), Oinousses, Psara, Agios Efstratios, Kalymnos, Leros, Karpathos, Patmos, Symi, Astypalaia, Kasos, Nisyros, Leipsoi, Tilos, Megisti (Kastellorizo), Chalki, Agathonisi, and Samothraki.
Mitsotakis stressed that the goal is to strengthen these regions economically, socially, and demographically.
