The value-added tax (VAT) on the border islands will be reduced by 30% from January 1, 2026, according to the policy changes Prime Minister Kyriakos Mitsotakis announced on Saturday in the context of the Thessaloniki International Fair (TIF).

The regulation specifically concerns the islands of the North Aegean Region, the Prefecture of Evros and the Prefecture of the Dodecanese with a population of up to 20,000 inhabitants based on the latest census of 2021.

Already the reduced VAT is applied to five Aegean islands, namely Chios, Leros, Samos, Lesvos and Kos, which maintain reception areas for refugee flows.

However, as highlighted in the context of the specification of the measures by the Ministry of National Economy and Finance on Monday, the measure is extended to the additional islands to strengthen residential and business activity. It is noted that the annual cost of the measure is estimated at 25 million euros.

The islands to benefit from the 30% VAT cut are Samothraki, Limnos, Agios Efstratios, Psara, Oinousses, Ikaria, Fournoi, Leipsoi, Tilos, Agathonissi, Kalymnos, Patmos, Halki, Kastellorizo, Nisyros, Symi, Astypalaia, Karpathos and Kasos. That also includes the small islands that belong to the above municipalities.