Astypalaia, Greece.
The recently announced VAT reduction for 19 Greek border islands, part of a broader effort to support local economies in smaller communities, is set to take effect on January 1, 2026, according to the Greek Ministry of Economy.
Acknowledging the economic and demographic challenges of Greece’s border islands, the government has introduced a 30 percent VAT reduction on all goods and services.
Specifically, VAT will be reduced from 24 percent to 17 percent, and from 13 percent to 9 percent. This cover the islands of Leipsoi, Tilos, Agathonisi, Chalki, Megisti (Kastellorizo), Kalymnos, Nisyros, Patmos, Symi, Karpathos, Kasos, Astypalaia, Lemnos, Agios Efstratios, Ikaria, Fournoi, Oinousses, Psara, and Samothrace.
Economy Minister Kyriakos Pierrakakis announced the official date of the reduction during a meeting with local authorities from the affected regions.
“The measures alone cannot solve the demographic problem,” Pierrakakis said. “But they show that the state recognizes declining birth rates as a major issue and is determined to help reverse the trend.”
Economy Minister Kyriakos Pierrakakis
Local authorities welcomed the VAT cut as a positive step for their communities, while also voicing additional concerns about everyday life.
These included calls to extend the measure beyond the 19 islands, questions over how development funding will be distributed, challenges linked to the Airbnb phenomenon, and proposals to allow municipalities to build housing for doctors and teachers on public land.
“These measures give strength and optimism to Greek society,” said South Aegean Governor George Hatzimarkos.
As part of the government’s wider relief plan, the islands will also benefit from the phased abolition of the Unified Property Tax (ENFIA) on primary residences, which is set to cover 12,720 villages nationwide by 2027.
Follow GTP Headlines on Google News to keep up to date with all the latest on tourism and travel in Greece.
Source link
