Greece’s finance minister has met with leaders from 19 remote Aegean islands to discuss a planned 30% tax cut, but the mayors used the opportunity to press the government for action on other urgent issues, including the housing shortage and the impact of short-term rentals.
In a two-hour digital meeting, Finance Minister Kyriakos Pierrakakis briefed the mayors on the details of the VAT reduction, which was announced by the prime minister last weekend.
The measure, set to begin in 2026, will lower tax rates on goods and services to support the islands' economies.
While the island leaders welcomed the tax relief, they also raised concerns about accessing development funds, managing the impact of Airbnb, and the need for authorization to build housing for public sector workers like doctors and teachers on state-owned land.
Mr. Pierrakakis told the leaders that the VAT cut is a signal of the government's commitment to reversing demographic decline in remote areas.
"You keep the country standing, and we are here to support you," he said.