If you’re someone who travels often, then you must have come across those shiny “Duty-Free Shopping” store signs. Have you wondered if those shops can really save you money? It is for sure that many travelers face this question every time they pass through duty free stores in airports.
Join us as we explain, “What is duty free?” and help you make better decisions while shopping at these tax-free stores.
What Travelers Should Know About Duty-Free Shopping
In simple terms, duty free is like getting discounts on certain items when traveling internationally. How is this possible? Well, the government levies taxes on products, especially the expensive ones. When you buy something abroad and bring it home, you will have to pay tax, not once, but twice! Yes, you read that right—once where you buy it and again when you enter your home country.
Duty free, meaning free from tax, helps you avoid the first set of taxes. So, basically, when you shop at these airport stores, you do not have to pay the local country’s taxes. That’s where your savings come from.
Let’s take an example for this. Suppose you’re flying out of JFK Airport and decide to spend your little savings on those luxury perfumes or designer sunglasses at the duty free JFK store. You would normally have to pay tax on such purchases, but because it’s a store that exempts such taxes, you can skip it!
Unfortunately, you cannot skip during the customs duty check! But this completely depends on how much you are bringing with you to your home country.
A Quick Guide to Duty Free Americas
Since we are already discussing duty free meaning, it’s only fair to mention the travel retail that operates these airport stores. Duty Free Americas (DFA) sells tax-free goods to international travelers via duty-free shopping. It’s basically a global company that serves the Western Hemisphere, including major airports, seaports, and borders both in the US and internationally.
Basic Guidelines for Bringing Stuff Home
Every country does things a bit differently, but here’s what Americans have been following for bringing international stuff home.
- Travelers can bring goods worth $800 without paying extra fees.
- Alcohol limit: 1 liter per person (duty-free), so don’t go trying to smuggle a mini bar.
- Each person in the family gets the $800 limit. Even babies count towards the family limit.
- Some items, like furniture and art, are always duty free.
Now, it’s obvious that if you cross the limit, the tax will pop up faster than your nosy neighbor. What you can do is that whenever you buy something that exceeds the $800 limit, you and your spouse can combine your limits to avoid extra fees. Simple!
What Should You Actually Purchase at Duty-Free Stores?
If you try to put your common sense into this, you’ll easily understand that the best purchase at the duty-free store is what the government taxes heavily. That’s how you’ll make greater savings!
Great Duty-Free Purchases
- Alcohol (whiskey, wine, rum)
- Cigarettes and cigars
- Perfumes and cosmetics
- Luxury chocolates
- Electronics (sometimes)
While you’re eyeing these items at the airport tax-free stores, make sure to skip these items:
- Leather goods (often overpriced)
- Sunglasses (usually more expensive than regular stores)
- Souvenirs (cheaper in the city)
Are You Really Saving Money?
Here comes the most important question: “Is buying at a duty-free worth it?” Sometimes yes, sometimes no.
The truth is that your savings on duty-free shopping vary according to what you’re buying and from where. Also, get this one thing cleared: these stores might not have lower price tags than a regular store because your savings come from avoiding taxes, not necessarily lower prices.
To enhance your duty-free shopping experience next time, you can try out these smart tips:
- Research prices online before you travel.
- Compare duty-free prices to regular store prices.
- Check currency exchange rates (they can boost your savings).
- Use apps like “Duty Free Addict” to compare prices across airports.
Best Airports for Duty-Free Shopping Around the World
Scroll through some of the best airports around the globe, offering an exceptional duty free shopping experience.
Asia
Incheon Airport, South Korea
This airport is a duty-free shopping heaven. You’ll find over 90 designer stores, including Chanel, Louis Vuitton, and Rolex. Special bonus: Korean beauty products like face masks at amazing prices.
Singapore Changi Airport
Famous for deals on cameras, electronics, and cosmetics. You can even pre-order online and pick up your items at the airport.
Hong Kong International
Unlike most airports that only sell luxury items, Hong Kong offers everything from books to electronics. Many travelers arrive hours early just to shop here.
Europe
Reykjavík–Keflavík Airport
The duty-free airport stores at Reykjavík–Keflavík Airport are famous for their broad selection of tax-free items and convenient pricing. You can explore a range of Icelandic beverages (including alcoholic drinks), chocolates, and beauty products. You can get all of this at half the regular price tags outside the airport.
Heathrow International Airport
You will most likely get the best deal at London’s Heathrow Airport’s large, well-stocked duty-free area. It offers extensive duty-free shopping, especially for luxury brands and perfumes. Get your hands on British designers at Terminal 5 or shop high-end international products at Terminal 3. The option for pre-order and airport pick-up is also available.
Charles de Gaulle Airport
By virtue of duty-free discounts, you can get good deals on all the high-end shops, including Dior, Hermes, Yves Saint Laurent, Chanel, and Louis Vuitton. The potential saving is about 20% on average, which is a good deal!
Middle East
Dubai International Airport
Hearing Dubai makes one wonder about luxury, extensive facilities, and, of course, SHOPPING! So, it’s obvious that its duty-free shopping areas are going to be equally exciting, and they are! You can shop luxury brands (local & international), electronics, cosmetics, and more at discounted prices.
USA
Los Angeles International Airport
Indulge in Hollywood glamour and shop exclusive brands at the LAX duty free stores. Stop by designer boutiques and Duty Free Shoppers for an enhanced shopping experience.
John F. Kennedy International Airport
You’ll find extensive New York Airport duty free shops across all nine terminals. This includes DFS stores, offering access to luxury brands and local specialties, such as California wines and chocolates.
Final Verdict
The truth of whether or not duty-free shopping is worth it varies depending on the type of item you purchase and the location. Generally, these stores can help you save a lot of time, especially on luxury brands, perfumes, and alcohol. That said, it’s still important to compare retail prices with the selected option and consider currency exchange rates. Also, don’t forget the potential import duties in your home country.
Commonly Asked Questions:
There are duty-free shops in U.S. airports, and Americans can shop at these stores if they are ticketed on an international flight.
When comparing mall shopping vs airport shopping, the real difference that would pop out is the duty-free purchase. Tax-free shopping is not a feature of mall shopping.
A duty-free store is found in airports and seaports, selling goods without levying import duties, sales taxes, or value-added tax (VAT).
Shopping at duty-free stores is usually worth it. You can skip the tax and buy yourself some luxury goods at a lower price.
Duty-free airport stores allow you to buy high-end brands, international products, and premium alcohol at a discount due to tax exemptions.
Consider visiting the duty-free shops, as you may find some good deals on such items.
