Hi , I'm debating between buying gold in Chennai vs Dubai during next trip. Has anyone purchased gold in Dubai using credit card ? Does credit card company charge for exchange rates ? What about the VA and making charges ? Is there is difference ? Appreciate any feedback with respect to cost savings and which one is preferable. Thanks Mangai
Tourists buying gold from Dubai can get a tax refund at the airport and I heard they refund 85% of the total VAT. I heard people buy gold from Dubai for its quality.I don't have any experience and next time when I come back, I am also planning to visit.
Had a stopover at Dubai in 2019 enroute to US for a short 2 days. No one in the family except me was interested in visiting the famous gold souk there for some gold purchase. They were more interested in the sight seeing of other tourist spots! However i could manage a hurried one hour at the gold souk and bought a pair of gold bangles weighing 25 gms. The cost at the time was 4190 AED with a VAT of 209 .5 AED totalling 4400 AED. Out of this, we got back around 160 AED at the airport claim as tax refund. So u can do the calculations . I feel the VAT(net) would be far less than what we would be paying here in india. Moreover i hear the gold is also of higher quality - which i am not in a position to say because we didnt get it checked as such. I found it a pleasure to shop there, for the sheer variety of designs and display. You can surely pay a visit , it would be worth it.
Getting it in Dubai with Credit card is the best way for gold coins. For Jewelry there will be making charges and it depends on what you are buying.
@abcd5 @joylokhi Thanks for the information. It helps me to take better decision @Thoughtful I don't need gold coins since I'm aware of procuring them at market price with minimum markups locally. I need only jewelry from India/Dubai. There are stores in Dubai with zero making cost. I will probably do some research on credit card transactions to avoid any charges.
I got charged 2% on my purchase with AmEx recently. You might want to check with your credit card company on foreign transaction fee. ( some cards have none ) You could take cash and convert ( or directly pay with USD as most shops accept USDs at the airport ) if you are comfortable carrying that much amount of cash with you.
Mangaii - Capital one has a CC that does not charge international service charge. I’ve used it in Dubai and didn’t have a transaction fee. I use it in india too. Jeweler in india did charge me a fee though because I used an international credit card. I didn’t have my local debit card on me that day.
Many credit cards have dropped the foreign transaction fees. I have an Amazon Visa card and I use that while traveling. Amex is dicey. Many places used to not accept it so I never use mine abroad. My father is a retired banker and he advised me to use a credit card instead of carrying large amounts of cash or trying to convert dollars.
@Laks09 thanks for the credit card recommendation. @MalStrom I agree with you . I cannot carry cash since I’m planning to buy during my return . Last time I ended up paying transaction fee using my bank credit card so this time wanted to make sure I’m not doing any mistake when it comes to
