Yes, you can buy duty free goods when visiting this European destination. There are many shops in this location selling goods at tax-free prices.
This is a special tax-free territory, located within the continent of Europe, but regarded as a non-EU Member State and outside the EU for tax (fiscal) purposes. Even though this territory may be part of, or associated with an EU member State, (such as the Canary Islands is part of Spain, or the Channel Islands associated with The UK), these special territories have a different tax status to their parent country. Some states, like The Vatican, Gibraltar or Andorra are completely independent countries, part of Europe, but not members of The European Community. This is why they are regarded as “non-EU” travel destinations and why you are subject to normal international duty free customs limits, just as if you were leaving The EU for Countries in Asia, Africa or the Americas.
For this reason, when you fly or sail to these destinations from an EU Country, you are entitled to buy goods in-flight, in the airport or on-board ship at duty free prices. Some of these territories are land-locked, such as Livigno or Samnaun, but you can drive there and take advantage of the excellent discount shopping that is available.
The tax-free shopping in these locations can normally be found throughout the territory, but often you will find more outlets near the border crossing, in the port or at the airport. The returning customs shopping limits which apply to non-EU travel, also apply if you come from these territories. The Canary Islands, Channel Islands, French Overseas Departments, Aland Islands, Gibraltar, Helgoland, Büsingen, Ceuta and Melilla, Livigno.