Starting January 1, 2026, VAT will be reduced by 30% on islands in the North Aegean Region, Evros Prefecture (Samothrace) and the Dodecanese prefecture with populations up to 20,000 residents, according to announcements by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair and details provided by Finance Minister Kyriakos Pierrakakis. Currently, reduced VAT applies to five Aegean islands (Chios, Leros, Samos, Lesvos, Kos) which maintain reception centers for refugee flows.
To strengthen residential and business activity on the remote Aegean islands with relatively small populations, the measure is being extended to islands in the North Aegean Region, Evros Prefecture (Samothrace) and the Dodecanese prefecture with populations according to the 2021 census of up to 20,000 residents. The annual cost of the measure is estimated at 25 million euros.
Islands included in the reduced VAT scheme
The above table lists the Municipality which also includes adjacent smaller islands.
