The grand duchy’s standard VAT rate of 17% meant that shoppers could claim back around €109 on a €1,122 new iPhone, says the study. Cyprus was ranked second worst with an average 11.64% saving percentage. Photo: Shutterstock.

The grand duchy’s standard VAT rate of 17% meant that shoppers could claim back around €109 on a €1,122 new iPhone, says the study. Cyprus was ranked second worst with an average 11.64% saving percentage. Photo: Shutterstock.

Luxembourg is the worst destination in Europe for duty-free shopping, according to price comparison website Money.co.uk.

Although the grand duchy is famed for lower taxes making cross-border travellers stock up on cigarettes, alcohol, and fuel, it does not look like a good spot for duty-free sprees.

A study by UK price comparison company Money.co.uk analysed the prices of the most popular overseas purchases such as luxury handbags or laptops. After calculating the potential amount that can be saved by reclaiming VAT, Luxembourg cropped up as the country with the lowest average saving percentage: 10.44%.

The grand duchy’s standard VAT rate of 17% meant that shoppers could claim back around €109 on a €1,122 new iPhone, says the study. Cyprus was ranked second worst with an average 11.64% saving percentage.

Croatia had the highest saving on average in the ranking. With one of the highest VAT rates in Europe it enables customers to claim a significant portion of their purchase back. “The highest savings come from the most expensive items analysed, including a TAG Heuer watch, which allows you to claim the maximum refund of 17.9%, equivalent to over £3,000 (€3,527),” says Money.co.uk’s report.

Hungary, Sweden, Slovania and Finland rounded off the top five of most favourable countries for those looking to save up on duty-free shopping.