From January 1, VAT will be reduced by 30% on a total of 19 islands in the Dodecanese, Northern, and Eastern Aegean, with Finance Minister Kyriakos Pierrakakis explaining that “effectively, the 24% VAT becomes 17% and the 13% VAT becomes 9%.”

The measure, which is already in effect on five Aegean islands (Chios, Leros, Samos, Lesvos, Kos) that maintain reception facilities for refugee flows, applies to islands with populations up to 20,000 according to the 2021 census.

The islands included in the reduced VAT – the table lists the municipality, which also includes nearby smaller islands.

The annual cost of the measure is estimated at €25 million.

This reduction translates into tangible benefits for residents: lower costs for food and basic necessities, reduced charges in dining and tourism services, as well as cheaper products such as medicines and books.

At the same time, the government expects that the competitiveness of local businesses and tourism will be strengthened, while also sending a clear message of support to local communities that keep the country’s most sensitive areas alive.