Buying Gold in Dubai to Sell in India: Profit or Risk? Experts Explain
With gold prices surging in India, many are considering buying gold in Dubai—where prices are typically 5–7% lower due to minimal taxes-and selling it back home for profit. However, experts warn that customs duties and additional costs significantly reduce potential gains.
Under current regulations, Indian residents returning after over a year abroad can bring up to 20g (men) and 40g (women) of gold jewellery duty-free. Gold bars and coins attract duty from the first gram, and short-term tourists receive no exemption. While up to 1 kg can be brought in with proper declaration and tax payment, duties may range from 6% for eligible returnees to as high as 36–38.5% for others. Currency conversion charges and 3% GST upon resale in India further cut margins.
Industry experts caution that price fluctuations, exchange rate risks, and strict customs rules make gold arbitrage highly risky. Failure to declare gold can lead to confiscation, penalties, or legal action.
Verdict: Buying gold in Dubai for personal use may offer some benefit, but doing so purely for resale profit is neither sustainable nor advisable.
