Tourists and residents can shop tax-free on a German island. Special regulations allow for significantly lower prices for many goods and services.

On the North Sea island of Heligoland, visitors and residents do not pay VAT. As the Hessische/Niedersächsische Allgemeine newspaper reports, the special regulation has been in force for more than 100 years. According to the newspaper, Heligoland occupies a special position: customs duties and VAT are exempt because the island is considered a foreign country for customs purposes.

Prices on Heligoland are usually 20 to 40 percent lower

The “Hessische/Niedersächsische Allgemeine” explains that the origin of the tax exemption lies in English rule from 1807 to 1890. When the island was handed over to Germany, these special regulations remained in force.

Prices on Heligoland are usually 20 to 40 percent lower than on the mainland. Many retailers specialise in high-quality products such as whisky, perfumes or tobacco. Clothing and accessories are also cheaper there.

What customs regulations must be observed in Helgoland?

Anyone travelling to Heligoland can buy goods worth up to 430 euros per person, as stated on the island's website. If you arrive by boat or your own plane, the limit is 300 euros.

Special rules also apply to spirits and tobacco products. Higher values ​​must be reported to customs before leaving the island.

Passengers arrested with gold in their butts

While some people use these special rules to travel to Heligoland, for example, others try to smuggle goods to other countries using sometimes strange routes.

One such case occurred in Dubai earlier this year. There, two passengers who wanted to smuggle gold to India were detained at the airport, one of them like pasta in the butt.

The two smugglers, who were traveling independently, had a total of 3.5 kilograms of precious metal worth about 20 million rupees (about 217,000 euros), the Hindustan Times reported.