Greece offers financial incentives to keep workers on remote Kastellorizo

Monday 14 September 2026 - 11:58

By: Azzat Manal

Greece offers financial incentives to keep workers on remote Kastellorizo

Greece is introducing new financial incentives aimed at encouraging people to live and work on Kastellorizo, the small and strategically located island in the eastern Mediterranean. Prime Minister Kyriakos Mitsotakis announced an annual allowance of €5,000 for public-sector employees, security personnel and members of the armed forces stationed on the island.

The measure is designed to support the island’s small population and help maintain essential public services in a location where geographical isolation makes attracting and retaining workers particularly challenging.

Under the new scheme, beneficiaries will have to maintain their residence on Kastellorizo for at least one year. Families will also receive an additional €1,000 for each young child. The payments will be exempt from taxation and protected from seizure, increasing their value for eligible households.

Payments to people who already live and work on the island are expected to begin in early 2027. Families and workers who move to Kastellorizo after the scheme is introduced will become eligible for the annual support from 2028. The government intends for the payments to continue on a yearly basis.

Mitsotakis announced the initiative during a visit to Kastellorizo, where the government also highlighted the need to strengthen the island’s economic and social infrastructure. Authorities see population stability as particularly important for maintaining schools, healthcare, public administration, security and other essential services.

Kastellorizo, officially known as Megisti, is one of Greece’s smallest inhabited islands. It lies just 2.1 kilometres from the Turkish coast near the town of Kaş in Antalya province, while the Greek mainland is roughly 580 kilometres away. The island covers around 9.1 square kilometres and has a single main settlement.

According to Greece’s 2021 census, Kastellorizo had around 594 residents. Its limited population and distance from mainland Greece make it one of the country’s most distinctive border islands. Its location also gives it importance beyond its size, particularly in the context of Greece’s relations with neighbouring Turkey and the wider eastern Mediterranean.

The island has a long and complex history. During the Ottoman period, it developed into an important maritime and commercial point in the region. Later, significant numbers of residents left for Rhodes, Athens and other parts of Greece, contributing to the island’s long-term demographic decline.

Kastellorizo became part of Greece following the post-Second World War territorial arrangements. Under the 1947 Paris Peace Treaties, Italy transferred the Dodecanese islands, including Kastellorizo, to Greece.

The latest financial initiative reflects a broader challenge faced by several remote European islands: maintaining permanent communities while providing public services in areas with small populations and limited economic opportunities. By offering direct financial support, the Greek government hopes to make life on Kastellorizo more attractive to workers and families and reinforce the island’s long-term viability.