The Greek government will cut the Value Added Tax (VAT) by 30% for 19 remote Aegean islands, a move aimed at boosting local economies and supporting their residents, Prime Minister Kyriakos Mitsotakis announced.
The measure, set to take effect on Jan. 1, 2026, will lower the standard 24% VAT rate to 17% and the reduced 13% rate to 9% on goods and services.
The policy is expected to cost the state an estimated €25 million annually.
The tax relief will apply to islands with populations under 20,000, including Lemnos, Ikaria, Kalymnos, Karpathos, and Patmos.
This extends a similar VAT reduction already in place for five larger islands—Chios, Leros, Samos, Lesvos, and Kos—that host refugee reception centers.
Officials said the policy, announced by Mr. Mitsotakis at the Thessaloniki International Fair, is designed to make life more affordable and boost the competitiveness of businesses and tourism on the country's most remote islands.