30% VAT Reduction Announced for Remote Greek Islands with Fewer than 20,000 Residents
Greek Prime Minister Kyriakos Mitsotakis, speaking from Thessaloniki, announced a 30% reduction in VAT rates for remote islands with populations under 20,000. This means the standard VAT rate of 24% will drop to 17%, and the reduced rate of 13% will fall to 9%.
The announcement, part of a package of economic measures unveiled at the Thessaloniki International Fair (TIF), extends the existing reduced VAT regime that already applies to five islands – Chios, Leros, Samos, Lesvos, and Kos – which have been heavily impacted by migration flows.
Now, with the new government measure, additional island regions will be included under the reduced VAT regime.
These are the islands where VAT will be reduced by 30% – See full list.
This reduction brings tangible benefits for residents: lower prices on food and essential goods, reduced costs for hospitality and tourism services, and cheaper products such as medicines and books.
At the same time, the government expects the measure to boost the competitiveness of local businesses and tourism, while sending a clear message of support to the local communities that keep Greece’s most sensitive border regions alive.
