From 1 January 2026, Greece will apply a 30% VAT reduction to the North Aegean, Samothraki, and Dodecanese islands with populations under 20,000.
Greece’s Independent Authority for Public Revenue (AADE) has announced, in Circular E.2113/2025, that from 1 January 2026, reduced VAT rates will apply to islands in the North Aegean, the Evros Regional Unit (Samothraki), and the Dodecanese with populations of up to 20,000, based on the latest ELSTAT census.
This announcement was made on 31 December 2025.
The 30% reduction applies to goods meeting the conditions of subparagraph (b) of paragraph 4 and to services meeting the conditions of paragraph 5 of Article 26 of the VAT Code.
The measure continues to apply to the islands of Lesbos, Kos, Samos, and Chios under paragraph 4 of Article 26 of the VAT Code.
AADE clarified that the reduced rates do not cover tobacco products or means of transport.
The 30% reduction lowers existing VAT rates as follows for the islands listed in the annex of the circular:
| Current VAT Rate | Reduced VAT Rate (30% Reduction) |
| 24% | 17% |
| 13% | 9% |
| 6% | 4% |
| 4% | 3% |
The reduction applies exclusively to islands with populations up to 20,000, as identified by the latest ELSTAT data.
