Taking Currency for holiday

[Voloudakis]

Something else of importance that the Greek Govt is rushing to be law within weeks (?) which among other things means any transaction greater tha 70 euros must be paid by debit or credit card. I will copy below the info I have which is posted on the reliable Sfakia forum. Apologies if yet again I seem to be scaremongering but if you are aware of these things (if they happen) then you can easily enjoy your stay, as always in Plakias. :-

The government is rushing to implement tax reforms by the next Eurogroup meeting on May 11 so as to unlock bailout funds benchmarked for Greece. The omnibus bill to be presented by Prime Minister Alexis Tsipras on Thursday also includes decisions concerning “luxury” islands with increased taxes on the table. Specifically cards for all transactions over 70 euros will be enforced as well as a special 4-5% accomodation tax at hotels that have more than three stars.

23 islands expected to be included on the luxury list will see overnight tax hikes once the omnibus bill will go into affect. The islands to be affected are those with over 3,100 inhabitants. Visitors will pay 1-5 euros per night to stay here as well as an additional 6% for clothes, footwear, jewelry in addition to 3% taxes at bar restaurants and night clubs from April 1 to October 31, according to a report in Greek daily Ta Nea.

Here is the list, strangely Crete is not listed but certainly has more than 3,100 inhabitants.
 3% taxes at bar restaurants and night clubs from April 1 to October 31, according to a report in Greek daily Ta Nea.

The 23 islands are:

Thasos

Limnos

Lesvos

Skiathos

Skopelos

Chios

Ikaria

Samos

Andros

Tinos

Mykonos

Paros

Syros

Naxos

Santorini

Patmos

Leros

Kalymnos

Symi

Kos

Rhodes

Karpathos

The goal of the tax increases are to increase VAT revenue in order to appease international creditors. Government sources state that the new omnibus bill will not have recessionary measures.

Proto Thema’s sources point to the following measures to be announced:

– Electronic card for all transactions over 70 euros on islands that have more than 3,100 residents

– Special accomodation tax during the tourist period (April-October) for a specific number of overnight stays in specific areas with specific lodgings (possibly hotels with over 3 stars)

Sources state that the draft bill includes an accomodation tax:

Α) residents at hotels with 3 stars will pay a 3% special tax per nightly stay

Β) residents at hotels with 4 stars will pay a 4% special tax per nightly stay

C) residents at hotels with 5 stars will pay a 5% special tax per nightly stay

Source chaniapost.eu/2015/…

[Arnaki]

Here is the list, strangely Crete is not listed but certainly has more than 3,100 inhabitants.

It does seem an odd list.  Similarly missing are:  Corfu, Kefalonia, Zakynthos (and others, but this is not test of our knowledge of Greek geography and population). 

Arnaki

[Noopsy]

I think it would be handy if those going to Plakias over the coming months report back to the rest of us when this proposed legislation comes into force, what impact it is having on hotel and restaurant prices, and if the requirement to pay by debit/credit card is being implemented.

Noopsy 

[Mike G]

I have just heard from a friend who is currently on Kos (on the list) who reports that prices are unchanged from last year.

[Noopsy]

Have just read on MSN News that Greece is in danger of running out of money in the next two weeks.  We will all have to keep a close eye on the situation but I, for one, will be bringing cash with me. 

Noopsy

[Tony and Sandra Smith]

Which cash will be most welcome? Euros, british pounds or American dollars?

[John R]

I'm not an expert but I would assume the euro would be the most welcome as they would become unobtainable other than via tourists etc. When in Hungary recently - also a very poor country, they, like the UK have their own currency but the euro was universally very welcome indeed. As I say, NOT an expert opinion.

[kayisi]

Here is the list, strangely Crete is not listed but certainly has more than 3,100 inhabitants.

It does seem an odd list.  Similarly missing are:  Corfu, Kefalonia, Zakynthos (and others, but this is not test of our knowledge of Greek geography and population). 

Arnaki

The answer I think is that Crete and the Ionian islands already have a higher rate of tax (?VAT) than the islands on the list.

With regard to the payment by credit/debit card for everything over €70 this is nothing more than a tax collectors charter.  We all know that avoiding tax is a national pastime (and that is why cash is king) but what intrigues me is long it will take to set up once the law is enacted and, more importantly, whether prices will have to rise or will the traders be able to stand the increased costs to their business if they absorb the increases.  I doubt they will be able to absorb the costs and will have to pass them on to us but I doubt it will happen for several months if at all this season.

[Pimo]

Might have a look for my old greek drachma's just in case !

[John R]

I think my early warning re taking plenty of currency might be wise though a last minute "solution" to the current crisis might now happen. There will be ongoing similar crisis's I suspect but effect on holidays should be minimal if any.

[Steve Jones]

Sadly, I think everyone for the foreseeable future will need to take currency with them.

Cash will be king.

Signs are that from Monday 29th June, the Greek banks will close and When they do reopen they will be forced to implement capital controls on the withdrawal of deposits/cash.

Wouldn't expect ATM's to be able to give cash especially on any of the islands.

Would need to take advice on whether credit cards are likely to be accepted.

My heart goes out to all of the Greek people, most who will really experience the brunt of this.

[John R]

 Yes - i totally agree. It's quite simple. Take lots of currency, enjoy your hol. And give Max support to the wonderful locals in Plakias.

[Noopsy]

Can anyone currently out there tell us if the VAT increase recently passed by the Greek parliament has impacted on restaurant prices and bus fares?

[Steve Jones]

Will find out.

Eating out this is more expensive this year compared to 2014, but we are having more meals with starters which accounts for most of the difference.

Sent from my Hudl 2 using Tapatalk

[JBMouse]

I am not due in Plakias until October, but we went to Lesvos in June, and, admittedly it was before the tax hikes, but prices were exactly the same as 2013, 2 years ago, no rises on any meals in the restaurants, nor beer (thank goodness).
I have read a little on the tax rises just imposed, and it appears the islands may have been spared the rise until later in the year, I hope that includes Crete.