When you’re traveling internationally, duty-free shops may beckon. These brightly lit, beautifully displayed retailers are stocked with all kinds of things you may want to bring home.
Because these stores sell items that are exempt from certain taxes, the prices should be lower than if you were to buy them elsewhere. At least, that’s the idea.
But do the items at duty-free shops really cost less? That depends on where you are and what you buy. Note that prices and exchange rates can fluctuate daily, so listed equivalents may change slightly.
How Duty-Free Shops Work
Import, value-added and sales taxes — aka duty — are imposed on imported and exported products. A duty-free shop, therefore, sells things without adding those taxes to the price. You’ll find duty-free shops in international airports, cruise ships and areas where tourists congregate.
[READ: Take Advantage of Tax-Free Weekend Sales.]
As a U.S. citizen you can purchase from any of them, up to a limit. In general, you can buy up to $800 worth of items at these stores within a 31-day time frame.
Once back in the U.S., you’ll need to complete a customs form to declare your purchases. If you exceed the limit you’ll have to pay duties on the excess.
Is Duty Free Cheaper?
Outside of convenience, you may be compelled to shop at at a duty-free store for its value. When the taxes aren’t added, the prices are typically lower than places where duty is included.
While duty free can translate into better prices, it doesn’t always.
“Some products may be cheaper outside of the duty-free environment, especially if they are subject to heavy import taxes,” Scott Poniewaz, head of travel and lifestyle benefits company EXEC, says.
“While this might seem like you’re getting a good deal, it’s important to research and compare prices beforehand to ensure that you’re actually getting a bargain,” he adds.
Here are the most commonly purchased duty-free items and their price differences at the time of publishing:
Alcohol
According to a 2022 YouGov poll, 21% of American consumers buy spirits and liqueurs at duty-free shops, so your first stop may be the booze aisle. But is duty-free alcohol cheaper?
Consider a liter bottle of Grey Goose vodka. At the Dufry Shop in Milan, it will cost you €57.00 (around $62.14) but at Total Wine & More that same bottle is $42.99.
While you’re in the Caribbean, you may want to bring back some rum. At the Piarco International Airport, Trinidad and Tobago duty-free shop a 750-milliliter bottle of Bacardi 8 Yr rum is priced at $25. At BevMo, it’s currently $25.99.
“I’ll get things like whisky in the Caribbean because it can be cheaper,” Derek Sall, founder and financial expert at LifeAndMyFinances, says.”But I always look up the prices first to make sure. Hop on your phone and see what it costs at home.”
Just be aware that comparing and contrasting prices isn’t always easy. Sizes can differ. A bottle may be available only in a 1-liter size at the airport, for example, but domestic retailers can carry larger or smaller versions.
Tobacco
Cigarettes are definitely something to pick up at a duty-free store. A 100-box carton of Marlboros can be yours for $62 at San Jose, California’s Mineta International Airport, while at a California Kroger it’s $86.40.
Seeking celebratory cigars? A 54-count box of Cohiba Behike is $607.99 online at Duty Free Pro but if you were to order the same box at Cuban Cigar Online it would cost you $1,214.
Perfume and Cosmetics
The YouGov poll found 22% of consumers buy fragrance products and 17% buy skin care items at duty-free stores — and for good reason. A 200-milliliter bottle of Dior Homme Cologne at the Edinburgh Dufry is £104.25 ($114.19) while at Sephora the same bottle is $175.00.
It’s hard to pass up the beauty sections at duty-free stores because the deals can be excellent. If you’ve been wanting to treat yourself to a Chanel N°1 De Chanel Revitalizing Eye Cream, it’s £49.70 ($54.44) at the UK Dufry. Stock up, because it’s $80 at the Chanel store.
Designer Bags and Accessories
Lusting over the Ferragamo Studio bag? Be careful. At the DFS store in Sydney it will run you AUD 3,990.91 (around $2,700) but at the designer’s store the same bag is $2,451.
Interested in designer sunglasses? A pair of Gucci aviators are €325 ($355.95) at the Madrid Duty Free but $450 if you were to pick them up at the Gucci store.
Electronics
Oh no, you’ve lost your headphones in India! You may be tempted to head over to the duty-free shop at the Mumbai International Airport and pick up a pair of Sennheiser Momentum Free Bluetooth Headphones for 18,100 rupees ($220.70). But they’re only $129.00 on Amazon, so so consider having them sent to you.
“When it comes to electronics, you may find that duty-free shops have a great selection available,” Poniewaz says.
“So, while it can be tempting to splurge while there, I advise approaching this with a bit of caution before you make a purchase. Research the specific model and compare prices with other retailers. Sometimes you can find better deals outside of duty-free shops or online,” he adds.
Problems can also arise if you want to return or exchange an item. You’re often better off buying electronics from a chain store so you can access customer service outside the airport if necessary.
[Read: Inside the Psychology of Overspending and How to Stop.]
Sweets and Snacks
According to the YouGov poll, 27% of American consumers are likely to buy chocolates and candies from duty-free stores. But you’re usually better off getting them elsewhere.
“Everyday consumer goods may not necessarily provide substantial savings at duty-free shops,” Sall says. “In fact, sometimes they may even be more expensive.”
Case in point: The Godiva Gold Rigid Box is €45.10 ($49.38) at the Brussels South Charleroi Airport Shop, but a comparable box at Macy’s is $34. So, if you’re bringing it home as a gift you may as well wait and hit the local mall.
How to Buy Duty-Free Items
If you do want to purchase something from a duty-free store, you can got to the brick-and-mortar location and shop around or buy it online from a company like WorldDutyFree.
[READ: The Best Time to Buy Everything.]
If the price is right at the actual store, you can enter your departure location, reserve the item you want (the store will hold it for for you for anywhere from 24 hours to 30 days), then pay in the store and collect your purchase. Note that you’ll have to show the cashier your travel documents, such as your boarding pass and your passport.
Consider Duty-Free Alternatives
Elyse Glickman is a Los Angeles-based freelance travel writer who says she’ll buy from a duty-free shop under two circumstances: when she knows the item isn’t available elsewhere and in emergencies.
“The savings aren’t usually that great compared to department stores but they can be a lifesaver when your purse or bag rips,” she says. “If I don’t have time to shop, I’ll take advantage of them.”
In other circumstances, Glickman suggests supporting local businesses instead.
“You can find something really special to bring home, such as jewelry and clothing that you can’t find anywhere else,” she says.
She also says to consider buying more standard items at a city’s department stores for comparable prices, which can be even lower during sales season.
Poniewaz agrees, encouraging travelers to explore regional markets, boutiques and shopping districts instead.
“They often provide a more diverse and authentic shopping experience,” he says. “These places may offer unique products, local craftsmanship and better prices compared with duty-free shops.”
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Duty Free: Is It a Good Deal? originally appeared on usnews.com
