The government is rushing to implement tax reforms by the next Eurogroup meeting on May 11 so as to unlock bailout funds benchmarked for Greece. The omnibus bill to be presented by Prime Minister Alexis Tsipras on Thursday also includes decisions concerning “luxury” islands with increased taxes on the table. Specifically cards for all transactions over 70 euros will be enforced as well as a special 4-5% accomodation tax at hotels that have more than three stars.

23 islands expected to be included on the luxury list will see overnight tax hikes once the omnibus bill will go into affect. The islands to be affected are those with over 3,100 inhabitants. Visitors will pay 1-5 euros per night to stay here as well as an additional 6% for clothes, footwear, jewelry in addition to 3% taxes at bar restaurants and night clubs from April 1 to October 31, according to a report in Greek daily Ta Nea. 

The 23 islands are:

Thasos

Limnos

Lesvos

Skiathos

Skopelos

Chios

Ikaria

Samos

Andros

Tinos

Mykonos

Paros

Syros

Naxos

Santorini

Patmos

Leros

Kalymnos

Symi

Kos

Rhodes

Karpathos

The goal of the tax increases are to increase VAT revenue in order to appease international creditors. Government sources state that the new omnibus bill will not have recessionary measures.

Proto Thema’s sources point to the following measures to be announced:

– Electronic card for all transactions over 70 euros on islands that have more than 3,100 residents

– Special accomodation tax during the tourist period (April-October) for a specific number of overnight stays in specific areas with specific lodgings (possibly hotels with over 3 stars)

Sources state that the draft bill includes an accomodation tax: 

Α) residents at hotels with 3 stars will pay a 3% special tax per nightly stay

Β) residents at hotels with 4 stars will pay a 4% special tax per nightly stay

C) residents at hotels with 5 stars will pay a 5% special tax per nightly stay