Filenews 27 November 2025
The Council of Ministers on Thursday approved an amendment to the VAT legislation, proposing a reduction in the rate from 19% to 5% for the construction and renovation of public and private buildings intended for educational institutions that provide exempt education.
The measure promotes access to quality and modern educational facilities, said Finance Minister Makis Keravnos in his statements after the Council of Ministers meeting.
According to Mr. Keravnos, the Council of Ministers approved an amendment to the VAT Law of 2000-2025 and it is proposed to apply a reduced VAT rate of 5% from the 19% applied, based on the existing legislation regarding the construction and renovation of public and private buildings intended for educational institutions that provide exempt education.
He explained that this concerns public schools, private schools registered in the register kept in accordance with the Private Schools and Tutoring Law of 1971, private schools of higher education registered in the register kept in accordance with the Schools of Higher Education Law of 1996 and persons, organizations or other institutions that are recognized by the Superintendent upon submission of an application on their behalf "if they are directly related to the services referred to in the above paragraphs".
"The proposal promotes access to quality and modern educational facilities, is part of the European logic, which is also the logic of our Government, that education is an investment with social performance and strengthens equality and social cohesion," added Mr. Keravnos.
Answering a question about the implementation of the reduction, he said that, in general, for the renovation, "whatever this will mean, both labour and material, as well as the construction of new buildings, will be 5% VAT".
Asked about the duration of this regulation, he said that the Ministry of Finance will review the measure, its financial impact and effectiveness every five years "and we will submit corrective measures before the Council of Ministers at the end of each five-year period".
Asked about the cost of this measure, Mr. Keravnos said that based on 2023 data, "because there is no other data at the moment", it is a cost of about €2 million.
CNA
