Does Purchasing Duty-Free Truly Save You Money? Insights from Seasoned Shoppers

With their neatly arranged Toblerone and whiskey boxes ready for sale, duty-free shops are a staple in international airports—impossible to miss. The duty-free market was valued at $38.95 billion in 2023, surpassing the GDP of numerous small nations, equating to every air traveler globally spending at least $4 in these airport shops last year. But what is duty-free shopping, and does it genuinely offer savings?

Duty-free shops in airports offer goods without the taxes and duties that are normally applied by a country on imported products.

While the appeal of tax-free shopping is undeniable, not all duty-free items offer great value. Generally, heavily taxed products like cigarettes and alcohol provide the most significant savings. Additionally, airports can be an excellent place to purchase luxury items and designer products.

Jen Nisan, a personal stylist and professional shopper with the fashion sourcing service Front Row Live, suggests buying clothing, footwear, and bags at the airport, as the VAT is waived and prices for brand-name items are often more competitive. However, she avoids the fragrance counters, as travelers can usually find the same perfumes in various countries.

“I prefer to save time and concentrate on acquiring items that are hard to find in my local shops while shopping at an airport,” Nisan explains. “My top choices for airport shopping are Paris CDG and London Heathrow. They always offer a broad selection of stores, and being large airports, it's enjoyable to explore while waiting for my flight.”

Though not a professional shopper, Linda Lau is a frequent traveler from New York who often takes advantage of duty-free shopping for better prices. Lau mentions that she travels through Paris’s Charles de Gaulle Airport around twice a year, along with several other international trips to various airports.

“Generally, it's wise to purchase from brands manufactured in that country due to import costs,” Lau advises. “For instance, labels like Hermès, Polène, and Longchamp are more affordable in Paris before the VAT refund.”

Not only can you discover better prices at the airport, but Nisan has also uncovered some rare luxury items.

“Occasionally, you can find a unique item at an airport because the stores are smaller, and luck might be on your side with one or two special pieces they keep hidden away,” Nisan recalls a time she discovered Saint Laurent earrings at Paris's CDG airport. “I stumbled upon a pair of earrings I had been searching for everywhere. It turned out that the only remaining pair in the company was at that airport.”

Before you start piling up on cigarettes and luxury handbags at the airport, it’s crucial to remember that there are limits on how many duty-free items you can bring into the United States, depending on your country of departure. According to the U.S. Customs and Border Protection website, personal duty-free exemptions range from $200 to $1,600 based on the country. Upon arrival in the U.S., you'll need to declare your purchases and their respective values. The duration of your stay abroad and the number of trips you've taken in the past 30 days may also influence this limit.

Takeaway: Skip the fragrances and oversized Toblerones. Instead, invest in that luxury bag you've been wanting.