Does Buying Gold in Another Country Make It Cheaper?

Think about it: One of South India's best-known actresses, high-profile and glamorous, deplanes Bengaluru's Kempegowda International Airport, under arrest for smuggling a whopping 14.8 kg of gold. Actress Ranya Rao and her husband, so it is alleged, tried to smuggle more than ₹12 crore's worth of gold into the country from Dubai. Their objective? To save themselves from prohibitive import duties and make hay while the nation's insatiable demand for the yellow metal continued.
This is only one of several instances highlighting an age-old Indian obsession—gold. Indians can't get their hands on it enough for wedding celebrations, festival expenses, or investment. This does, though, raise a thought-provoking question: Is it truly cheaper to buy gold in a foreign country?



Gold is not just a metal in India; it's a tradition, a symbol of status, and sometimes even a family heirloom passed on through generations. Whether bridal ornaments or Diwali shopping, gold is a part of Indian culture. Indians also invest in gold during economic downturns because they believe in its value over stock markets or real estate.
With this obsession, Indians buy gold abroad to get it at lower prices. Does buying gold abroad really save money, however?



Gold prices are not the same globally. Some countries sell it at much lower prices due to tax benefits, low import duties, or a controlled gold market. These are the best places to buy gold at lower prices:

Dubai’s Gold Souk is world-famous for its variety and competitive pricing. The city imposes no tax on gold purchases, making it a top choice for Indian buyers.
With no VAT or sales tax on gold, Hong Kong is another attractive option for those looking for purity and affordability.
Known for banking and gold refineries, Switzerland offers VAT exemptions on gold coins and bars and is hence heaven for investors.
The new hub for gold with no GST on investment-grade gold, Singapore is becoming increasingly popular with consumers.
On paper, buying gold in these countries seems like a wise choice, but here's the catch.


While gold may be lower-priced abroad, here's what you need to remember before taking a flight to buy it:


Gold has an import duty of 12.5% in India, plus 3% GST, so 15.5% in total. So even if you buy gold at a lower rate abroad, getting it legally into India could erase that saving.


Indian customs rules state:
Men are allowed to carry a maximum of 20g of gold duty-free.
Women are allowed to carry a maximum of 40g of gold duty-free.
Anything beyond that must be declared and taxed.
If you fail to declare and exceed the limits, you are subject to confiscation, heavy fines, or even arrest—ask Ranya Rao!


Gold may be cheaper in another nation, but exchange currency rates can differ. The value of the rupee falling in comparison to the dollar can drain your savings.

Even in countries like Switzerland and Dubai, which have tight controls, there is a threat of imitation. Buying from reputable dealers is critical in avoiding fraud.


Given how high the import duties are, some tourists try to smuggle gold into India. But is it worth taking the risk?
Smuggling gold is an offence under Indian law. The perpetrators face heavy penalties, seizure of assets, and even jail if caught. The Ranya Rao case is proof that the authorities are cracking down harder than ever before.



If you’re purchasing gold for investment and plan to keep it outside India, then buying in countries like Dubai, Hong Kong, or Switzerland makes sense. But if your goal is to bring it home, the savings may not be worth the hassle, given the legal risks and additional import duties.
Instead, buy legal gold in India at price lows or look into digital gold and sovereign gold bonds, both of which have tax benefits along with ease of liquidity.

Buying gold abroad seems to be a cost-effective idea, but if you take into account import duties, exchange rates, and legal liabilities, the saving might be negligible. It might be feasible for small personal purchases, but for large investments, it is better to explore legal and tax-efficient ways of investing in gold in India.
Therefore, if you don't want to turn out to be Ranya Rao, always avoid smuggling and go in for smarter, legal gold investments!