For many travellers, shopping is more than just a pastime—it’s a key part of the holiday experience. Finding unique items and great deals can be as memorable as visiting a landmark. A recent report from December 2025 has unveiled the most budget-friendly places for a shopping spree, and the results might surprise you.
A new study by women’s fashion brand Kaiia has pinpointed the countries where savvy shoppers can get the most value for their money. By looking at over 25 nations, the research compared factors like sales tax, tax-free refund policies, minimum purchase requirements, and the base price of a typical clothing bundle. This detailed analysis reveals the final cost for travellers, showing where your money goes furthest. If you’re planning a trip and want to indulge in some retail therapy, here are the top five destinations to consider.
How the Study Determined the Best Deals
To rank the shopping destinations, the study took a comprehensive approach. Researchers analysed several key factors that directly affect the final price a tourist pays. These included each country’s sales tax, the rate of tax-free refunds available to non-residents, and any minimum spending required to qualify for those refunds.
The study also established a baseline cost for a standard bundle of apparel and shoes to ensure a fair comparison across different economies. Finally, it factored in online search popularity to gauge how much interest each location generates for shopping deals. By combining these metrics, the report calculated the true cost of shopping for visitors after all taxes and refunds are applied.
As a fashion expert from Kaiia noted, “People are paying a lot more attention to their spending these days, especially with inflation pushing up the price of almost everything. Clothing has been hit hard in many places, rising even faster than overall consumer costs, and tourists are noticing the difference. That’s why tax-free shopping has become such a big draw. For some travellers, the combination of better prices, easy refund processes, and the excitement of exploring a new place makes shopping abroad feel like a smarter, and sometimes even cheaper alternative to buying the same items at home.”
The Top 5 Countries for Shopping Deals
Based on the data, here are the leading countries where you can stretch your shopping budget further.
1. Poland: The Ultimate Bargain Hunter’s Paradise
Topping the list as the most affordable shopping destination is Poland. A typical bundle of clothing and shoes that would cost £325 before adjustments comes down to an impressively low £263 after tax and refunds. This makes Poland the best-value location in the entire study.
While Poland has a relatively high sales tax of 23%, it offers a generous tax-free refund rate of 19%. To qualify, visitors only need to spend a minimum of £48. This significant refund brings the average price down by £60, offering substantial savings. Though not as widely searched for shopping as other European hotspots, with around 87,300 monthly searches, its unbeatable prices and favourable tax rules make it the number one choice for informed shoppers.
2. Spain: Great Prices and No Minimum Spend
Coming in at a close second is Spain, where the same apparel bundle costs just £268 after tax and refunds. Spain’s appeal lies in its straightforward and highly accessible tax-free shopping system. A standout feature is that there is no minimum purchase requirement to claim a tax refund, meaning every purchase, no matter how small, is eligible for savings.
Spain offers a 17% tax-free refund, which, combined with a sales tax of 21%, results in excellent value for tourists. Its affordability and shopper-friendly policies have made it a massively popular destination, attracting nearly 2 million online searches each month from people looking for tax-free shopping opportunities.
3. Canada: Low Taxes Keep Costs Down
Canada secures the third spot on the list, thanks to having the lowest sales tax rate in the study. At just 5%, the initial prices on goods are already competitive. This low tax rate means the final cost for the apparel bundle is an attractive £284.
While Canada does not offer a tax-free refund scheme for tourists like many European countries, its consistently low sales tax ensures that prices remain affordable from the outset. This straightforward approach to pricing has made Canada the most searched-for shopping destination in the study, with over 13 million people looking up its shops and deals online every year.
4. Malta: Big Refunds on a Mediterranean Island
The charming island of Malta ranks fourth, offering travellers an average post-refund cost of £294 for their shopping. While the initial price for a basket of goods is higher at £359, a substantial 18% tax-free refund makes it a very appealing option.
To qualify for the refund, shoppers need to meet a minimum spend of £58 in a single transaction. This system allows visitors to get back almost a fifth of what they spend, turning a Mediterranean holiday into a rewarding shopping trip. In terms of online popularity, Malta is on par with Poland, with about 83,000 people looking up its shopping scene monthly.
5. Australia: Simple Savings Down Under
Rounding out the top five is Australia, where a shopping bundle costs £298 after tax adjustments. Australia’s system is both simple and effective. The country has a low sales tax of only 10%, which keeps upfront prices down.
Furthermore, Australia offers a 10% tax-free refund with no minimum purchase requirement, making it easy for travellers to claim back savings on their purchases. These attractive shopping conditions contribute to Australia’s status as a top tourist destination, with 4.5 million people searching online for information on its prices and sales.
Your Next Shopping Adventure Awaits
As travellers become more budget-conscious, destinations that offer great value are gaining appeal. This report shows that by understanding local tax and refund policies, you can enjoy world-class shopping without breaking the bank. Whether it’s the unbeatable prices in Poland or the simplicity of low taxes in Canada, there are fantastic deals to be found across the globe.
Before your next trip, a little research into your destination’s shopping rules could lead to significant savings. It’s an opportunity to bring home not just souvenirs, but also the satisfaction of a purchase well-made.