For Island Professionals and Small Businesses
Dodecanese MP Manos Konsolas has submitted a new parliamentary proposal to the Minister of National Economy and Finance, calling for additional tax relief measures aimed at supporting self-employed professionals, freelancers, and businesses operating in Greece’s island regions.
His proposal includes two key measures:
- extending the 50% reduction in deemed taxable income to self-employed professionals across all Greek islands, with the long-term objective of gradually abolishing the system;
- reducing advance income tax payments for businesses and self-employed professionals based in island communities.
Mr. Konsolas argues that island economies face unique structural challenges, including strong seasonality, limited local markets, lower business turnover, geographical isolation, and significantly higher transportation costs. He also stresses that the current deemed-income taxation system often imposes an unfair tax burden on professionals operating in these areas.
The MP notes that the government has already acknowledged these special circumstances by introducing a 50% reduction in deemed taxable income for professionals on islands with fewer than 3,100 residents. He believes that stronger public revenues, improved tax compliance, reduced tax evasion, and the expansion of electronic transactions now create sufficient fiscal space for broader tax reductions benefiting island economies.
According to Mr. Konsolas, strengthening the island economy is a national priority with strategic and geopolitical importance, closely linked to addressing demographic challenges and promoting balanced regional development through a fairer tax framework for Greece’s island communities.
