Isle of Man

Relationship with EU

The Isle of Man has a special relationship with the European Union set out in Protocol 3 to the United Kingdom's Treaty of Accession. Under this special relationship the island is neither a member state nor an associate member of the European Union. It is also worth emphasising that the Isle of Man is an internally self governing dependent territory of the Crown and is not part of the UK. Under Protocol 3, the Isle of Man is part of the customs territory of the Union. It follows that there is free movement of industrial and agricultural goods in trade between the Island and the Union.

The Isle of Man neither contributes to, nor receives from, the funds of the European Union, thus guaranteeing the Isle of Man's fiscal independence. Any proposal to change Protocol 3 would require the unanimous approval of all Member States of the Union, including, of course, the UK. Apart from the requirements of the Protocol, in particular that the Isle of Man Authorities shall apply the same treatment to all natural and legal persons of the Union, the other Union rules do not apply. The island's relationship with the Union allows it to trade with countries in the European Economic Area in a fashion generally similar to its trade with the Union itself.