Greece Reduces VAT for Islands, Extends Real Estate Relief, and Abolishes TV Subscription Levy

✅ 1. Special VAT Reduction for Certain Islands

• 30% VAT rate reduction applies to:
  • Islands in the North Aegean Region, Evros Regional Unit (Samothraki), and Dodecanese Prefecture with population under 20,000 (based on 2021 census).
• This reduction applies to goods delivered to these islands and services performed there, excluding tobacco products and means of transport.
• Current reduced VAT for Chios, Kos, Lesvos, and Samos continues (linked to migration center conditions), but Leros loses the benefit after Dec 31, 2025.
• Practical effect: Standard VAT (24%) drops to 17%, and reduced VAT (13%) drops to 9% for eligible islands. [taxathand.com], [news.gtp.gr]

✅ 2. VAT Suspension on Real Estate

• The VAT suspension regime for newly built property (under Article 70 of Greek VAT Code) is extended until Dec 31, 2026.
• Under this regime, sales of new residential property are not subject to VAT, and contractors cannot deduct input VAT. [taxathand.com], [kpmg.com]

✅ 3. TV Subscription Levy Abolished

• The TV subscription levy is abolished for bills issued from Jan 1, 2026. [taxathand.com]

No changes to the general VAT rates (remain at 24% standard, 13% reduced, 6% super-reduced) for mainland Greece. The changes are targeted at supporting remote island economies and the real estate sector.

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