Greek Islands VAT: the 30% Cut, and Which 24 Islands Qualify
Since 1 January 2026, twenty-four Greek islands charge VAT thirty per cent below the mainland — 17% where the mainland charges 24%. This is the full qualifying list, the band-by-band mapping, and the two categories that are carved out of it.
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Quick answer: 24 islands in the North Aegean, the small Dodecanese and Samothraki charge VAT 30% below the mainland from 1 January 2026 — 17% instead of 24%, 9% instead of 13%, 4% instead of 6%. Tobacco and means of transport are excluded. Crete, Rhodes, Corfu, Santorini and Mykonos do not qualify. Calculate at either schedule on the Greece VAT calculator.
The band-by-band mapping
Law 5246/2025 — the "Tax Reform for Demographics and the Middle Class" — was adopted by the Hellenic Parliament on 7 November 2025 and took effect on 1 January 20261. It cuts every Greek VAT band by thirty per cent on qualifying islands, rounded to whole percentage points.
| Mainland | Qualifying island | What sits in the band |
|---|---|---|
| 24% | 17% | The standard rate — most goods and services |
| 13% | 9% | Food, restaurant and catering, hotels, passenger transport |
| 6% | 4% | Medicines and vaccines, electricity and gas, books, newspapers |
| 4% | 3% | Works removing architectural barriers for people with disabilities |
Two categories are carved out. Tobacco products and means of transport stay at the mainland rates even on a qualifying island. A packet of cigarettes on Chios carries 24%, not 17%.
The 24 qualifying islands
The islands sit in the North Aegean region, the Dodecanese, and Samothraki in the Evros regional unit, and each has a population of 20,000 or fewer. A number of smaller associated islets qualify with them2.
| Agathonisi | Agios Efstratios | Astypalaia |
| Chalki | Chios | Fournoi |
| Ikaria | Kalymnos | Karpathos |
| Kasos | Kos | Leros |
| Lesvos | Limnos | Lipsi |
| Megisti (Kastellorizo) | Nisyros | Oinousses |
| Patmos | Psara | Samos |
| Samothrace | Symi | Tilos |
✅ Qualifies — 17% standard
Chios, Lesvos, Samos, Kos, Leros, Ikaria, Kalymnos, Patmos, Symi, Karpathos and the rest of the 24.
❌ Does not qualify — 24% standard
Crete, Rhodes, Corfu, Santorini, Mykonos, Naxos, Paros, Zakynthos — the large tourist islands are all outside the scheme.
Why the qualifying list changed
Greek island VAT relief has a complicated history. The older arrangement was tied to islands hosting migrant reception facilities, which made the list unstable — an island could gain or lose the reduction as facilities opened and closed, and Leros was scheduled to drop out at the end of 2025 on exactly that basis.
Law 5246/2025 replaced that with a population rule: islands in the qualifying regions with 20,000 or fewer inhabitants. That is a more stable and more defensible basis, and it is why Leros now qualifies on its own population rather than on hosting a reception centre.
It is a place-of-supply rule, not a delivery-address discount
The relief applies to goods delivered to those islands and services performed there. It is not a discount a mainland seller can claim because a customer happens to live on Samos — the supply itself has to be located on a qualifying island.
€70 less VAT on every €1,000 — the point of the policy is to offset the higher cost of living and supply on small, remote islands.
How to apply the reduced rate
- Check the island is on the qualifying list. Only the 24 named islands and their associated islets qualify. Crete, Rhodes, Corfu, Santorini and Mykonos do not.
- Confirm the supply is actually located there. The relief applies to goods delivered to the island and services performed on it. A mainland sale does not qualify because the customer happens to live on Chios.
- Rule out the exclusions. Tobacco products and means of transport stay at mainland rates even on a qualifying island.
- Find the mainland band first. Work out which mainland band the item sits in — 24%, 13%, 6% or 4% — using the ordinary Greek rules.
- Apply the 30% cut. Drop to the island counterpart: 24% becomes 17%, 13% becomes 9%, 6% becomes 4%, and 4% becomes 3%.
Greece is not alone in running sub-national VAT schedules. Portugal does the same thing with Madeira and the Azores, where the Azores at 16% hold the lowest standard rate anywhere in the EU. Spain goes further and puts the Canary Islands outside the EU VAT area entirely.
Continue
- Greece VAT calculator — switch between mainland and island schedules and calculate in either direction.
- Madeira & Azores VAT rates — the Portuguese equivalent, with three schedules in one country.
- European VAT rates by country — all 27 member states plus the UK, Norway and Switzerland.
- Cyprus property VAT — the other Mediterranean case where a reduced rate comes with hard caps.
- EU VAT OSS and IOSS guide — how cross-border sales into Greece are reported.
Frequently asked questions
Quick answers to the most common questions users ask.
Which Greek islands have reduced VAT in 2026?
Twenty-four islands qualify: Agathonisi, Agios Efstratios, Astypalaia, Chalki, Chios, Fournoi, Ikaria, Kalymnos, Karpathos, Kasos, Kos, Leros, Lesvos, Limnos, Lipsi, Megisti (Kastellorizo), Nisyros, Oinousses, Patmos, Psara, Samos, Samothrace, Symi and Tilos, along with a number of smaller islets. They sit in the North Aegean region, the Dodecanese, and Samothraki in the Evros regional unit.
What are the reduced island VAT rates?
Every band is cut by 30%. The 24% standard rate becomes 17%, the 13% band becomes 9%, the 6% band becomes 4%, and the 4% band becomes 3%. The arithmetic is a straight 30% reduction rounded to whole points.
When did the reduced island rates take effect?
1 January 2026, under Law 5246/2025, which the Hellenic Parliament adopted on 7 November 2025. AADE issued circular E.2113/2025 clarifying how it applies.
What is excluded from the island VAT reduction?
Tobacco products and means of transport are carved out and stay at the mainland rates. Everything else eligible follows the reduced schedule.
Which islands qualify — is it about migrant reception centres?
Not any more. The earlier arrangement was tied to migrant reception facilities on specific islands, which made the list unstable. Law 5246/2025 replaced that with a population rule: islands in the qualifying regions with 20,000 or fewer inhabitants. Leros, for instance, now qualifies on population rather than on hosting a reception centre.
Does the reduction depend on where I ship the goods?
It applies to goods delivered to those islands and services performed there. It is not a shipping-address discount you can claim from the mainland — the supply itself has to be located on a qualifying island.
Do Santorini, Mykonos, Crete and Rhodes get the reduced rate?
No. The scheme covers the North Aegean, Samothraki and small Dodecanese islands under the population threshold. The large tourist islands — Crete, Rhodes, Santorini, Mykonos, Corfu — charge the full mainland rates of 24%, 13% and 6%.
Is this a permanent change?
It is legislated rather than time-limited, but Greek island VAT relief has been repeatedly introduced, suspended and reinstated since the bailout years. Treat it as current law rather than a settled permanent feature, and re-check before relying on it for long-term pricing.
References
- Law 5246/2025, 'Tax Reform for Demographics and the Middle Class', adopted 7 November 2025Hellenic Republic — Ministry of Finance↩
- Circular E.2113/2025 — application of the reduced island VAT ratesIndependent Authority for Public Revenue (AADE)↩
- VAT rates applied in the Member States of the European UnionEuropean Commission — Taxation and Customs Union↩
- Council Directive 2006/112/EC on the common system of value added taxEUR-Lex↩
Primary sources are linked directly. Rates and thresholds change on their own schedules — always confirm against the issuing authority before relying on a figure.
Calculate at Greek island rates
Switch between mainland 24/13/6 and the island 17/9/4 schedule instantly.
Related guides
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European Commission — VAT Guide
Comprehensive portal for VAT rates and rules across all 27 EU member states, including B2B/B2C regulations.
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