Luxembourg and Andorra lure French smokers with cheaper cigarettes

Lower tobacco taxes in Luxembourg and Andorra create a sizable price gap with France, prompting thousands of French smokers to make regular cross‑border trips for cheaper packs. In Luxembourg, tobacco excise and VAT are set well below French levels, generating about €1.4 billion in revenue from foreign buyers in 2024, while a ten‑pack cartridge can cost under €6 compared with more than €12 in France.

Andorra, which is outside the EU, applies minimal tobacco duties, allowing a 20‑cigarette pack to sell for a fraction of the French price. French travelers are limited to 300 cigarettes (1.5 cartridges) per trip; exceeding this can trigger seizures and fines. After accounting for fuel, tolls and travel time, the net saving for a typical round‑trip is often under €40, making the trip worthwhile only for those living close to the border.