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New decree gives extending the favorable tax regime 5 Aegean islands

matter of time signature of another ministerial decision which reduced, will be extended 30% VAT rates until the end of 2019. Which islands profit from maintaining the reduced rates…….

At 31 December 2018, the expiration of the second extension relative, Decree Euclid Tsakalotos and Katerina Papanatsiou came to give another six-month extension on the system of reduced VAT rates in five Aegean islands.

This period expires on 30 June 2019 and according to Finance Ministry sources is a matter of time signature of another ministerial decision which reduced, will be extended 30% VAT rates until the end of 2019.

The islands are expected to "earn" the maintenance of reduced rates is:

  1. Leros
  2. Lesvos
  3. Kos
  4. Samos
  5. Chios

At the end of last year the government had relied on "the extremely urgent need to address the consequences of increased refugee flows" in these islands but also "the fact that the average number of guests at the Reception Centers and Identification of the aforementioned islands during the period 01.12.2017 until 30.11.2018 exceeds the hosting capacity per island, as determined at the outset of each Center '.

With such data invoked will be the new extension.

Reduced VAT rates in the five islands of the Aegean were abolished in summer 2018 when the government decided to extend the discounts and forced by the Eurogroup to take equivalent measures (the financial cost is little bit over 20 million. euro) mainly by cutting defense ministry spending.

Last December asked lenders not equivalent measures and given the election period is not expected to raise-not directly at least, such a question.

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