The UAE is a paradise for gold lovers, offering some of the best rates and quality in the world. However, with a 5% VAT on gold purchases, buyers are always looking for ways to avoid or reduce tax on gold. Whether you’re investing in gold bars, jewelry, or diamonds, knowing the right strategies can help you save money. In this guide, we’ll explore how to reduce tax on gold purchases in UAE legally and efficiently.
1. Buy Gold from VAT-Free Zones
One of the best ways to avoid tax on gold in the UAE is by purchasing from VAT-free zones like:
- Dubai Gold & Diamond Park
- Sharjah Free Zone
- Abu Dhabi Global Market (ADGM)
These free zones cater to both local and international buyers, allowing them to buy gold at zero VAT. Many gold traders in these zones offer tax-free transactions, making them an ideal choice for bulk purchases.
➡️ Explore gold jewelry collections
2. Buy Gold with Zero Making Charges
Did you know that many jewelry stores in Dubai offer zero-making charges on select gold pieces? This significantly reduces the overall cost. Keep an eye out for promotions like:
- Zero making charges on gold chains
- Special discounts on gold bangles and rings
- Exclusive deals on gold sets
You can check the latest offers on zero-making charge gold chains in Dubai.
3. Invest in Gold Savings Schemes
Many leading gold retailers in the UAE offer gold savings plans that allow you to accumulate gold over time without paying VAT upfront. These plans let you:
- Deposit small amounts monthly
- Get gold at prevailing market rates
- Redeem your savings for gold jewelry or bars later
Interested? Check out the Easy Gold Purchase Scheme for flexible savings options.
4. Buy Gold Bars Instead of Jewelry
If you’re an investor rather than a jewelry enthusiast, buying gold bars is a smarter choice. Why?
- Lower making charges (or none at all)
- Higher resale value
- Better profit margins
Gold bars attract less VAT compared to jewelry since there are no added design costs. Explore a wide selection of investment-grade gold bars for maximum savings.
5. Claim VAT Refunds as a Tourist
If you’re visiting the UAE as a tourist, you can claim a VAT refund on your gold purchase before leaving the country. Here’s how:
- Shop at VAT-registered retailers offering the refund scheme.
- Request a tax-free purchase receipt at checkout.
- Present your passport and receipt at the airport refund counter before departure.
This is an excellent way to buy gold at a reduced price, making Dubai a top destination for gold shopping.
➡️ Find the best gold investment options
6. Buy Gold When Rates Are Low
Gold prices fluctuate daily, and knowing when to buy can help you save significantly. To maximize your investment:
- Track gold prices regularly
- Buy during price dips
- Monitor global market trends
Want to stay updated? Read about gold rate predictions and make an informed decision.
Final Thoughts
Buying gold in the UAE is a great investment, but why pay extra taxes if you can legally reduce or avoid them? By shopping in VAT-free zones, taking advantage of zero-making charges, and investing in gold savings schemes, you can make smarter purchases. Whether you’re a tourist or a resident, these strategies can help you save on gold purchases in the UAE while ensuring maximum returns.
📢 Looking for the best gold deals? Visit Al Hind Gold & Diamonds for top-quality gold and diamonds at unbeatable prices!
