With an annual payment of €5,000 for those serving on Kastellorizo, together with a corresponding incentive for households living on or choosing to settle permanently on the island, Prime Minister Kyriakos Mitsotakis announced a special support package for the remote border island. From the same location, he also sent a clear message to Greece’s neighbors: “We threaten no one, but we will not accept threats or dictates from anyone.”

The Prime Minister, who attended celebrations marking the anniversary of the liberation of the remote island, set as a key objective keeping people on Kastellorizo and attracting new residents, linking the financial incentives with housing, ferry connections and the completion of critical infrastructure projects.

The Two €5,000 Incentives

The first measure is a permanent annual salary incentive of €5,000 for personnel serving on the island in all public services, the Security Forces and the Armed Forces.

The second concerns both the local community and those considering making a new start on Kastellorizo. A special settlement and residency incentive of €5,000 per household per year is being introduced. The amount will be tax-free and protected from seizure, and will increase by €1,000 for every minor child.

The requirement is that the recipient must have lived on the island for at least one full year.

For current permanent residents, the support will be paid at the beginning of 2027, while for new residents payments will begin in 2028 and continue every subsequent year.

“Making Kastellorizo their permanent place of residence” was the challenge the Prime Minister set.

“We Will Not Accept Threats or Dictates from Anyone”

The second major message of the speech had a national dimension and carried particular symbolism because it was delivered from Kastellorizo.

Kyriakos Mitsotakis spoke of the three principles of “security, stability and consistency,” emphasizing that Greece is pursuing “a responsible, patriotic and realistic foreign policy,” while simultaneously strengthening its deterrent capabilities.

“We seek friendly relations, without tensions and without provocations,” he said, addressing Greece’s neighbors and emphasizing adherence to international law and the Law of the Sea. He nevertheless made Greece’s red line clear:

“We threaten no one, but we will not accept threats or dictates from anyone. We are ready to defend our national integrity and our sovereign rights.”

The Prime Minister described Kastellorizo as an “emblematic place” from which to express Greece’s position in favor of “a future of peace, with the doors closed to all revisionist ambitions,” while keeping the path open to mutual respect and legality.

New Ferry Service and Free Housing

The Kastellorizo support plan also includes an additional subsidized Blue Star ferry service each week on the Piraeus–Rhodes–Kastellorizo route, strengthening the island’s connection with mainland Greece and the Dodecanese.

“Every Wednesday. You asked for Wednesday, so this service will begin,” Mitsotakis said.

At the same time, he announced that, following discussions with the management of HELLENiQ ENERGY, the company would undertake the complete renovation of old homes so that doctors, teachers, coast guard personnel and other public officials can be housed free of charge on Kastellorizo.

The same plan includes the completion of infrastructure projects that have been pending for decades: restoration of the main port, desalination plants, a new sewage network, wastewater treatment facilities and the water-supply network.

“The Image of 2010 Saddened Us”

“These are neither random nor piecemeal measures. They are pieces of a unified policy that makes it clear that there are no second-class citizens,” the Prime Minister stressed.

At this point, he chose to turn the clock back to 2010 and to the image that linked Kastellorizo with Greece’s entry into the bailout memoranda, referring to the address delivered from the remote island in 2010 by then-Prime Minister George Papandreou.

“I know how much it saddened us, how much the image of 2010 saddened you, with Kastellorizo being chosen as the setting from which the country’s passage into the painful years of the memoranda was announced,” he said.

He described this as “a connection the island did not deserve,” contrasting that period with the present: “And here, as throughout Greece, thankfully things are different.”

On the occasion of the anniversary which, as he said, “shaped Kastellorizo’s destiny,” Mr. Mitsotakis focused on the people who kept the island alive through successive challenges.

He spoke of a “remote border rock that has weathered a thousand storms, yet never bent,” noting that its history is intertwined with that of the country itself.

“No challenge is insurmountable when there is unity and faith, when there is courage and perseverance,” he stressed. “Kastellorizo is not just another one of our islands. It is deeply etched in the heart of every Greek woman and every Greek man.”

The Prime Minister said that this legacy of pride inspires Greece and defines its responsibility toward Kastellorizo today.

“We are strengthening its security, supporting its development and continuously improving the everyday lives of its residents. With lower taxes and a permanent 30% reduction in VAT. With fuel subsidies, zero ENFIA property tax, and special incentives for public servants serving here, as well as for businesses that invest and create jobs.”

New Support Measures Announced for Kastellorizo

• A permanent annual salary incentive of €5,000 is being established for personnel serving on the island in all public services, the Security Forces and the Armed Forces. The measure will operate in combination with an additional package of incentives from the Ministry of Interior.
• To support the local community as well as those considering making a new start here, an annual €5,000 settlement and residency incentive per household is being introduced. The amount will be tax-free and protected from seizure. It will increase by €1,000 for every minor child. The only requirement is residence on the island for at least one full year.
• For permanent residents already living on the island, the support will be paid at the beginning of 2027. For new residents, payments will begin in 2028 and continue every subsequent year.
• The island’s connection with mainland Greece and the Dodecanese will be strengthened. From the beginning of next year, an additional subsidized weekly service will be added to the Piraeus–Rhodes–Kastellorizo route, significantly increasing travel options to the island.
• Dozens of major infrastructure projects will be completed, ranging from restoration of the main port and modernization of the airport and road network to new desalination facilities. The plan also includes the appointment of permanent teachers, the use of digital resources in schools, and the regular deployment of mobile units to conduct preventive medical examinations.
• Hellenic Energy will undertake the complete renovation of old homes so that all public officials—including doctors, teachers, coast guard personnel and others—can be housed free of charge.

“All these measures are neither random nor piecemeal. They are the components of a unified policy declaring that there are no second-class citizens.”

On National Issues

“We threaten no one, but we will not accept threats or dictates from anyone. We are ready to defend our national integrity and our sovereign rights.” Dialogue, he added, remains an option based on confidence and faith in international law.

The message emanating from Megisti extends beyond national borders, because its territory is also European territory.

Kastellorizo is an emblematic place from which to express Greece’s intention for a future of peace—with the doors closed to any revisionist ambitions, but the path open to mutual respect and international legality.

This is the national policy Greece has followed since 2019, producing tangible results that strengthen the country across all fields: defense and diplomacy, the economy and social cohesion.