Greece's Ministry of National Economy and Finance published a readout of Minister Kyriakos Pierrakakis’s interview on Aeolos TV, setting out the government’s tax measures aimed at boosting incomes in island and border communities. He highlighted a targeted 30% value added tax (VAT) reduction for border islands in the North Aegean Region, Evros and the Dodecanese, alongside plans for the gradual abolition of the ENFIA property tax and broader tax cuts for families, young people, self-employed professionals and farmers. The VAT reduction was presented as correcting an imbalance, as reduced VAT had previously applied only to five islands hosting refugee reception facilities, and the ministry has received positive initial feedback on the wider tax reform. Pierrakakis also referenced the ‘transport equivalent’ subsidy, stating that 425,000 island residents benefited last year and that of roughly EUR 88 million in ticket costs, EUR 42 million was covered from the state budget via the Public Investment Programme; while acknowledging delays, he noted that EUR 9 million had been paid out by 10 June and set an objective to speed up and improve the process.
Ministry of National Economy and Finance (Greece) 2025-09-12
Greece's Ministry of National Economy and Finance sets out 30% VAT cut for border islands and plans to phase out ENFIA
Greece's Ministry of National Economy and Finance outlined tax measures to boost incomes in island and border communities, including a 30% VAT reduction for certain regions and plans to abolish the ENFIA property tax. Minister Kyriakos Pierrakakis highlighted positive feedback on these reforms and discussed the 'transport equivalent' subsidy, benefiting 425,000 island residents last year. He acknowledged delays in subsidy payments but noted efforts to expedite the process.