Greece: Tourist Arrangements More Expensive Next Year

The abolition of tax breaks and the increasing rate of VAT for the hotels on the Greek islands, which are part of a package of reforms that international creditors require from Athens, will result in increase of arrangements for vacation in Greece for 7 to 10 percent, according to TASS.

Greek Ministry of Finance announced that from 1 October the tax rates valid for the whole of Greece, will begin to apply on the islands of Rhodes, Santorini, Mykonos, Naxos, Paros and Skiathos, who have had tax relief.


After this, the tax exemptions will be scrapped for the other islands in two groups, the first one from June 1, 2016 and the second one from 1 January 2017. With this, from 2017 no Greek island will have lower taxes.

Equalization of tax rates on the islands with those applicable to the mainland Greece, is expected to result in a rise in prices of goods and services in the island tourist facilities.

The six islands of the "first group" as of tomorrow the tax rate will increase from six to 13 percent.

This tax equalization is one of 120 measures that the Greek Government agreed to implement in exchange for a new aid package worth EUR 86 billion.

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