Yes, Gold is cheaper in Dubai because of the exclusion of taxes in the United Arab Emirates. This means that the buyers only have to pay the cost of the jewelry.
Dubai is one of the wealthiest cities and emirates of the United Arab Emirates. The price of gold in Dubai follows the international market rates for gold, but the exclusion of taxes for buying gold in Dubai makes it the best, purest, and cheapest gold in the world.
But does this mean that buying gold is cheaper than anywhere else? If so, does this apply to buying gold jewelry in the city too?
This is what we will mainly discuss in this article. We will also discuss why and how you should buy gold in Dubai.
We will try not to go too deep into this topic’s technical and legal side but also find how much the difference is in the cost of gold in Dubai and the USA. So, let us dive deeper into this topic and see if gold is cheaper in Dubai than anywhere else.
Is Buying Gold From Dubai Cheaper?
Yes, buying gold in Dubai is cheaper than in the rest of the world. This is mainly because of the city’s tax exclusion on buying gold.
Gold has always been an investment for everyone around the world. The luster of the metal attracts people from East and West alike.
This is why the first city that comes to everyone’s mind when buying gold or gold jewelry is Dubai.
Dubai is known for tax exemption on gold. Due to this, buying gold in Dubai is cheaper as this means that one only needs to pay for the value of the gold product they have bought.
Although the introduction of Value Added Tax, VAT 2018, in Dubai does levy a 5% tax on any purchased item, this still means that gold is cheaper in Dubai than in any other country.
Tourists who visit Dubai and buy gold in the city can now claim VAT refunds in the UAE for all purchases made in the country.
All claims must be validated at different validation points —special devices placed at departure ports like seaports, border ports, and airports in the United Arab Emirates.
However, you must apply for VAT Refunds before leaving UAE. For example, if you are going via a flight, the process can be executed at the VAT refund counter at Dubai Airport.
For more information on VAT Refunds, visit the official UAE information and services website.
Should You Buy Gold From Dubai?
Yes, you should buy gold from Dubai, especially if you visit the city as a tourist. You will get tax redemption and a VAT refund for the gold you bought.
Following is a list of advantages of buying gold in Dubai.
1. Tax Redemption
Gold bought from Dubai is tax-free, which means you will save money on taxes. This makes buying gold in the city cheaper than in other countries.
2. Great Quality
The purity of gold bought from Dubai is superior compared to other countries. The government regulates all gold jewelry sold in the country, and the item needs to carry a gold purity hallmark.
This ensures the authenticity and purity of the gold bought and sold throughout the city.
3. Wider choice
The kind of diversity and variety in gold designs available in Dubai can be found nowhere.
Since it is so popular, you can choose from a wide selection of designs and makings. This also means that jewelers are constantly upgrading their styles to one-up their competition in the market, thus giving you a diverse collection of designs.
4. Bargain on making charges
Another benefit of buying gold jewelry from Dubai is that you can bargain on making charges.
The gold rate in Dubai depends on international gold prices today. That is why gold is much cheaper in Dubai than in other countries.
Is Buying Gold Jewelry From Dubai Cheaper?
Yes, buying gold jewelry from Dubai is cheaper.
Gold is cheaper in Dubai because of tax redemption. This means you only have to pay for the value of the jewelry you will buy.
If you are a tourist, you can apply for a VAT refund and claim it at Dubai Airport.
Apart from this, if you buy gold jewelry from Dubai, you can also bargain on the making charges of the ornament. This means you can negotiate the costs you are willing to pay to those who crafted the jewelry for you.
It is perfectly normal in Dubai to haggle for making charges, so do not shy away from it.
Price Of Gold In Dubai And USA
Gold in Dubai is cheaper than in the USA.
Following is a table to show how different gold prices are in Dubai and the USA.
|RATES IN DUBAI
|RATES IN USA
How Can I Buy Gold In Dubai?
According to the laws in Dubai, the gold can either be brought as an item in checked baggage or imported within 15 days of an individual’s arrival in the USA in the form of an unaccompanied suitcase.
However, many gold jewelers often let foreign customers buy gold online and then export the gold merchandise to the customer.
According to the US Customs and Border Protection, the regulations for importing bullion, gold coins, and medals into the United States are pretty lenient.
There is no duty on gold coins, medals, or bullion, but these items must be declared to a Customs and Border Protection Officer.
However, commercial imports that exceed $2,500 are considered formal entries by US Customs and Border Patrol. This includes the import of gold jewelry.
For a formal entry, you must fill out CBP Customs Bond Form 301 and obtain a surety bond against the import of such items.
You can read more about the technicalities here.
In this article, I tried to tackle that by creating a definitive guide on gold in Dubai vs. other countries.
Here’s a quick recap.
Is gold cheaper in Dubai? Yes, gold is cheaper in Dubai because of the exclusion of taxes in the United Arab Emirates. Tourists also have the option of VAT refunds at Dubai airport.
My name is Jeyn Dashner and I am the founder of WanderFever. I have worked as a travel journalist for many years, and exploring new places is my greatest pleasure in life.