While the outermost regions and the overseas countries and territories fall into structured categories to which common mechanisms apply, this is not true of all the special territories. 10 member state territories have
ad hoc arrangements in their relationship with the EU. In those special cases,
VAT rules do not apply and they may also be exempt from
customs or
excise rules.
Åland islands in Åland
Åland, an autonomous archipelago belonging to Finland, but with partial autonomy, located between Sweden and Finland, with a Swedish-speaking population, joined the EU along with
Finland in 1995. The islands had a separate referendum on accession and like the Finnish mainland voted in favour. EU law, including the fundamental
four freedoms, applies to Åland. However, there are some derogations due to the islands' special status. Åland is outside the VAT area The status may be obtained by any Finnish citizen legally resident in Åland for 5 years who can demonstrate an adequate knowledge of the Swedish language.
Büsingen am Hochrhein The
German village of
Büsingen am Hochrhein is an
exclave entirely surrounded by
Switzerland and as such is for practical purposes, in a
customs union with the latter non-EU country. The euro is legal tender, though the
Swiss franc is preferred. Büsingen is excluded from the EU customs union and the EU VAT area.
Campione d'Italia and Livigno The
Italian exclave village of
Campione d'Italia is enclaved by
Switzerland's
Ticino canton as well as
Lake Lugano (or Ceresio), and is a
comune in the
Province of Como, whilst
Livigno, a small and remote mountain resort town, is a
comune in the
Province of Sondrio. Both
comuni are part of the
Lombardy region. Although part of the EU, Livigno is excluded from the customs union and VAT area, with Livigno's tax status dating back to Napoleonic times. Campione is excluded from the EU VAT area, instead while technically not part of the Swiss VAT area, the Swiss VAT rate is applied as a local consumption tax. It was excluded from the EU customs area until the end of 2019. Shops and restaurants in Campione accept payments in both euros and Swiss francs and prices are displayed in both currencies.
Ceuta and Melilla in
Spanish North Africa Ceuta and
Melilla are two Spanish cities on the North African coast. They are part of the EU but they are excluded from the
common agricultural and fisheries policies. They are also outside the customs union and VAT area,
Cyprus When the
Republic of Cyprus became part of the
European Union on 1 May 2004, the northern third of the island was outside of the effective control of its government due to the
Turkish invasion of Cyprus, a United Nations buffer zone of varying width separated the two parts, and a further 3% of the island was taken up by
UK sovereign bases (under British sovereignty since the
Treaty of Establishment in 1960). Two
protocols to the
Treaty of Accession 2003—numbers 3 and 10, known as the "Sovereign Base Areas Protocol" and the "Cyprus Protocol" respectively—reflect this complex situation. EU law only applies fully to the part of the island that is effectively controlled by the government of the Republic of Cyprus. EU law is suspended in the northern third of the island (the
Turkish Republic of Northern Cyprus, whose independence is recognised only by
Turkey) by article 1(1) of the Cyprus Protocol. If the island is reunified, the
Council of the European Union will repeal the suspension by a decision. Four months after such a decision has been adopted, new elections to the
European Parliament will be held on the island to elect Cypriot representatives from the whole of the island.
Cypriot nationality law applies to the entire island and is accordingly available to the inhabitants of Northern Cyprus and the British sovereign base areas on the same basis as to those born in the area controlled by the Republic of Cyprus. Citizens of the Republic of Cyprus living in
Northern Cyprus are EU citizens and are nominally entitled to vote in elections to the European Parliament; however, elections to that Parliament are not organised in Northern Cyprus as it is governed de facto by a separate state, albeit a state recognized only by Turkey.
Akrotiri and Dhekelia The United Kingdom has two sovereign base areas on Cyprus, namely
Akrotiri and Dhekelia. Unlike other British overseas territories, their inhabitants (who are entitled to
British Overseas Territories Citizenship) have never been entitled to
British citizenship. Prior to Cypriot accession to the EU in 2004, although the United Kingdom was an EU member at the time, EU law did not apply to the sovereign base areas. This position was changed by the Cypriot accession treaty so that EU law, while still not applying in principle, applied to the extent necessary to implement a protocol attached to that treaty. This protocol applied EU law relating to the
Common Agricultural Policy, customs, indirect taxation, social policy and justice and home affairs to the sovereign base areas. The sovereign base areas' authorities also made provision for the unilateral application of directly applicable EU law. The UK also agreed in the Protocol to keep enough control of the external (i.e. off-island and northern Cyprus) borders of the base areas to ensure that the border between the sovereign base areas and the Republic of Cyprus could remain fully open and would not have to be policed as an external EU border. Consequently, the sovereign base areas would have become a
de facto part of the Schengen Area if and when Cyprus implemented it. The base areas are already
de facto members of the
eurozone due to their previous use of the
Cypriot pound and their adoption of the
euro as legal tender from 2008. Because Cypriot nationality law extends to Cypriots in the sovereign base areas, Cypriot residents, as citizens of the Republic of Cyprus, are entitled to EU citizenship. Just under half of the population of the sovereign base areas are Cypriots, the rest are British military personnel, support staff and their dependants. In a declaration attached to the
Treaty of Establishment of the Republic of Cyprus of 1960, the British government undertook not to allow new settlement of people in the sovereign base areas other than for temporary purposes. Under a protocol to the
Brexit withdrawal agreement, certain provisions of EU law on agriculture, customs, indirect taxation, social security and border control continue to apply to the sovereign base areas.
United Nations buffer zone The
United Nations buffer zone between north and south Cyprus ranges in width from a few metres in central
Nicosia to several kilometres in the countryside. While it is nominally under the sovereignty of the Republic of Cyprus, it is effectively administered by the
United Nations Peacekeeping Force in Cyprus (UNFICYP). The population of the zone is 8,686 (as of October 2007), and one of the mandates of UNFICYP is "to encourage the fullest possible resumption of normal civilian activity in the buffer zone". Inhabited villages located in the buffer zone are legally administered by the Republic of Cyprus but policed by UN peacekeepers.
Faroe Islands island,
Faroe Islands The
Faroe Islands have never been part of the EU. Danish citizens residing on the islands are not considered citizens of a member state within the meaning of the treaties or, consequently, citizens of the European Union. However, Faroese people, who are
Danish citizens, may become EU citizens by changing their registered
residence to the Danish mainland. The Faroe Islands are not part of the Schengen Area, and Schengen visas are not valid. However, the islands are part of the
Nordic Passport Union and the Schengen Agreement provides that travellers passing between the islands and the Schengen Area are not to be treated as passing the external frontier of the Area. This means that there is no formal passport control, but an identity check at check-in for air or boat travel to the islands where Nordic citizens on intra-Nordic travel need no passport, only showing the ticket plus identity card.
Heligoland Heligoland is an archipelago of Germany situated in the
North Sea off the German north-western coast. It is part of the EU, but is excluded from the customs union and the VAT area. guaranteed by article 105 of the
Greek Constitution. It is part of the customs union but outside the VAT area. The monastery has certain rights to house monks from countries outside the EU. A declaration attached to Greece's accession treaty to the
Schengen Agreement states that Mount Athos's "special status" should be taken into account in the application of the Schengen rules.
Plazas de soberanía The
plazas de soberanía are small islands and a peninsula scattered along the Moroccan coast which have been integral parts of Spain since the 15th century and therefore are also part of the European Union. Their currency is the euro. ==Areas of extraterritoriality==