Buying A Luxury Watch Overseas: Investment Guide

Individuals who are keen on alternative investments might have heard about buying a luxury watch overseas as an option.

Frankly, it can be a nice addition to a diversified investment basket, but you must be aware of the high risks involved as well as be prepared for the costs.

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).

This includes if you are looking for alternatives or a second opinion.

Some of the facts might change from the time of writing, and nothing written here is formal advice.

For updated guidance, please contact me.

Buying A Luxury Watch Overseas

Access to unique models and relatively lower expenses are two major benefits that it can provide.

It’s important to understand the best countries for such transactions too.

Is buying a luxury watch an investment?

Yes, especially for models and brands that have become known for having room for high resale value. 

Luxury timepieces are attractive to both investors and collectors not only owing to their appreciation prospect but also their tangibility.

Is buying a luxury watch worth it?

Why buy a luxury watch

For some, it’s all about their craftsmanship and heritage. For many, it’s the possible revenue. For instance, the value of luxury watches from companies like Patek Philippe and Rolex has increased over time.

It can diversify an investment portfolio, which is crucial for shielding assets from market fluctuations.

Say, unlike stocks, this physical asset class can be enjoyed personally aside from it being an investment.

Besides, the market for high-end watches has faced steady growth in the past years as per The Economic Times.

How to buy a luxury watch abroad

Get to know which countries have the best offerings.

To determine whether you’re getting a good deal, look up the usual cost of the models you’re particular with both domestically and internationally.

You should only buy from authorized dealers or trustworthy retail stores. Check out the warranty coverage.

Keep an eye on exchange rates prior to your trip to get the most savings. A favorable rate can save a lot of money.

Wearing your watch on your journey rather than keeping it in the box it came in can help you avoid customs problems. Keep all of your purchase paperwork close at hand.

Check if you qualify for a VAT refund when you acquire a luxury watch overseas.

Cheapest countries to buy luxury watches

1. Japan. It is a duty-free area for visitors and has low sales tax rate at 10%, which enables huge luxury watch purchase savings. The country carries local and international luxury names, which is an added bonus.
2. Hong Kong. It is an important location for retailers and is one of the best countries to buy luxury watches since it does not impose sales tax or VAT. It’s also a duty-free zone where customers can frequently find affordable prices on luxury timepieces.
3. Singapore. Duty-free shopping is available at many stores, and the city-state has a comparatively low rate for sales tax at 9%. There are many high-end watch boutiques with well-known brands there too. Due to its status as a shopping haven, Singapore offers access to certain models that might not be found elsewhere.
4. Dubai. While the emirate levies a 5% VAT on luxury items, it does offer tourists a tax refund on certain qualified purchases from participating shops/retailers. When making a purchase, travelers must ask the retailers for a VAT refund and save all receipts and tax-free tags for airport verification.
5. Malaysia. The country provides a good collection of Swiss brands at competitive prices through a number of authorized dealers. It has sales tax rates of between 5% and 10% for watches that cost over 20,000 ringgit (over $4K).
6. Switzerland. Home to famous luxury names like Patek Philippe, the nation provide competitive prices since there are no import taxes and transportation costs are reduced. Prices can differ depending on how strong the Swiss franc is vs other currencies. VAT on purchases stands at 7.7%, but tourists can seek a refund for qualified acquisitions.