Is duty-free really a good deal?
Is duty-free really a good deal?
https://www.morningbrew.com/stories/2025/11/09/is-duty-free-really-such-a-steal
There are savings to had but not on everything.
BySam Klebanov
November 9, 2025
Duty-free is the only place where you can snag a jumbo Toblerone as a last-ditch travel gift 20 minutes before your flight home and not pay taxes on it. These chain stores market themselves as bargain purveyors, as they’re legally allowed to sell goods without charging value-added tax (VAT) or excise taxes, due to their location in transit zones, which are technically outside the borders of any country.
The beginning of duty-free stores as we know them today date back to the 1950s, when the Irish government granted a tax exemption. Today, they’re everywhere and make up a big part of killing time at an international airport. Travelers spent $80 billion on goods at the taxless emporiums last year, according to Fortune Business Insights.
So, how much can you save?
Shopping at a European duty-free store can save you 8% to 27% in VAT (depending on the country) that you’d otherwise pay for the same merchandise outside the airport. Meanwhile, a duty-free haul in China and Japan could exempt you from 13% and 10% taxes, respectively. Globally, the best duty-free deals are typically found on alcohol and tobacco products.
For example:
- Buying a six-pack of 5% lager in a UK duty-free store could save you ~$4.25 worth of excise tax.
- In the Netherlands, a pack of cigarettes is subject to excise taxes and VAT amounting to 110% of its retail price.
Caveat alert
A duty-free shopping spree still isn’t advisable. The shops are filled with travel necessities like sunglasses and sunscreen, often at a markup that exceeds the tax savings. In many cases, the shops price items in a way that doesn’t pass on the tax exemption to customers.
Be mindful…
there are exemption limits on how much of various duty-free products can be brought into most destination countries.