Cost of Living in Luxembourg: Is Luxembourg Expensive?

Cost of Living in Luxembourg: Is Luxembourg Expensive?

Luxembourg is one of the smallest countries in Western Europe, and also one of the richest, thanks to its thriving economy (good for the cost of living) and tax-friendly business environment. Although the cost of living is high – especially when you take into account the higher salaries paid here. Luxembourg can still be an attractive place for expat professionals looking to get a foothold in their careers.

Overall, the cost of living in Luxembourg is high for international standards, with the price of food and rental particularly being high. Although incomes are higher here than elsewhere in Europe, you will still find it challenging to save much if you take into account the general cost of living. The country has a reputation as a tax haven due to its low corporate tax and tax laws that favor non-residents.

Luxembourg’s capital city, Luxembourg (same name) is known to be one of the most expensive cities in the world, with expats often spending double on their household bills compared to locations like London and Paris. We hope that this guide will help you to plan your budget better should you decide to make Luxembourg your next home.

For a small country, Luxembourg has several things to offer expats, from an extensive and well-maintained public transportation network to a generally high standard of living. But these perks come at a price, as utilities are one of Luxembourg’s steepest expenses for expats; however, in return for these extra expenses, most expats find their quality of life improved considerably.

Is Luxembourg Expensive To Live In?

Yes, Luxemburg is an expensive place to live in. The overall cost of living across the major cities in Luxembourg is comparable to that of Germany and France. Although more expensive than in some other countries such as Sweden, the average income in Luxembourg allows expats to enjoy a good standard of living.

However, Luxembourg has one of the lowest living costs in all of Western Europe, except Switzerland. It is comparatively low even for people from neighboring countries, such as France, Belgium, and Germany.

In general, expenses are higher in larger cities, because there are simply more services available. However, commuters can benefit from lower expenses if they live outside of the city center. We can simply say that, on average, one should have around 1,650 Euros per month to stay comfortably in Luxembourg.

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Our survey has shown that the average cost of living in Luxembourg is around 44% higher than in the USA. Several factors influence prices in Luxembourg, most notably its high purchasing power, high salaries, and significant tax advantages. The House Price Index indicates how house prices have developed in the past decade. Here’s a breakdown of the monthly living expenses in Luxembourg.

CategoryEstimated Monthly Expenses ($)
Transportation353.70 $
Clothing and Shoes133.88 $
Leisure and Sports267.43 $
Markets1,464.07 $
Utilities (Monthly)413.93 $
Rent Per Month2,154.76 $

This comprehensive guide is based on the cost of living in Luxembourg city. From groceries, utilities, and monthly rent to clothing and miscellaneous expenses, this article focuses on basic monthly expenses as well as additional costs that arise through day-to-day occurrences. It’s a great read to get a better idea of how the cost of living in Luxembourg compares to places like neighboring France or Germany.

Cost Of Living: What Are the Living Expenses Like In Luxembourg?

In this article, you will find more detailed information about the cost of living in Luxembourg. The cost depends on the lifestyle of a person. Your need may sometimes be less and sometimes more.

The cost of living in Luxembourg is relatively high compared to most European countries. The cheapest grocery items you can buy are vegetables and fruits, fish, butter, and dairy products. An average dinner in a restaurant depends on your location, but it will not be less than 20 €. If you refer to a list with minimum salaries, you should know that the monthly salary without taxes is 3500€. But in fact, it amounts to around 2,500-3,000 Euros.

The cost of living in Luxembourg is quite high, due to its location within the EU. It is one of the wealthiest countries within the union, often compared to Austria, Switzerland, and France. Despite this, there are taxes in Luxembourg that drive up the prices of goods and services for residents. The VAT rate for goods is 17%, and the tax for services is around 33%. That said, the wages earned by residents in Luxembourg tend to be higher than average too.

Living costs are notably higher in Luxembourg than in the US or other western countries with low costs of living. Although incomes can be high, expenses are also very high. And without a fixed cost of living, some people may find that it is difficult to know what their expenses will be from month to month.

Cost Of A Meal & Restaurants Food Prices In Luxembourg

Most of these prices are within the average cost range for Western Europe, with some notable exceptions. Groceries and transportation, while not the cheapest in the region, are still within reason. Higher prices in Luxembourg can be explained by the country’s small size, its wealth, and fewer sales tax exemptions.

More taxes on imported goods (especially cars) and local luxuries (particularly cigarettes) are among the reasons prices are higher in Luxembourg than in the EU average. The ranking above may not be correct but it is close to reality.

Here you can see the average price of restaurants in Luxembourg and you can compare it to your city.

Eating OutPrice in Euros (€)
Meal, Inexpensive Restaurant20.00 €
Three-course Meal for 2 People, Mid-range Restaurant,85.00 €
McMeal at McDonald’s (or Equivalent Combo Meal in a Food Chain Store)10.00 €
Domestic Beer (0.5L)5.50 €
Imported Beer (0.33L)5.50 €
Regular Cappuccino3.56 €
Coke/Pepsi (0.33L)2.85 €
Water (0.33L)3.27 €

Cost Of Groceries & Consumer Goods In Luxembourg

Incomes in Luxembourg are quite high and it is a wealthy country. But that doesn’t mean much to people who aren’t familiar with relative prices. Let’s look at how expensive (or cheap) living in Luxembourg is.

The items we buy have a price. This is the market price of consumer goods. Here I can list and show the market prices of consumer goods in Luxembourg, one of the safest countries in the Europa zone.

Food ItemsPrice in Euros (€)
Milk (regular), (1L)1.22 €
Loaf of Fresh Bread (500g)2.86 €
Rice (white), (1Kg)2.42 €
Regular Eggs (12)3.55 €
Local Cheese (1Kg)19.67 €
Chicken Fillets (1Kg)11.58 €
Beef Round (1Kg) (or Equivalent Back Leg Red Meat)19.00 €
Apples (1Kg)2.61 €
Banana (1Kg)1.59 €
Oranges (1Kg)2.56 €
Tomato (1Kg)4.09 €
Potato (1Kg)1.58 €
Onion (1Kg)2.79 €
Lettuce (1 head)1.55 €
Water (1.5L)0.66 €
Bottle of Wine (Mid-Range)8.50 €
Domestic Beer (0.5L)1.90 €
Imported Beer (0.33L)2.22 €
Cigarettes 20 Pack (Marlboro)5.40 €

Cost Of Transportation and Commuting In Luxembourg

Luxembourg enjoys an unmatched transportation infrastructure which includes an international airport, a railway system, several highways, and canals. Given the above, it is neither surprising nor alarming that Luxembourg residents spend more on transportation than in any other European country.

When it comes to transportation, Luxembourg city is well connected. Several bus services operate within the city and even in neighboring countries. It’s also easy to get around by bike with a large network of cycle paths connecting the city and its suburbs, and there is an extensive electric tram service that runs right through the center of the capital.

Now we understand that different people have different budgets. Transport is costly in some cities, and getting the best deal on international jobs can offset these costs to some degree. But one thing we do know is that transport costs here in Luxembourg are free.

Luxembourg is proud to be the first country in the world to offer nationwide free public transport (buses, trains, and trams) for everyone (visitors and residents). As a Luxembourgish resident, you can now enjoy getting around – to school, work, shopping, or elsewhere – for free, regardless of age or mobility.

If you’re coming here for a short-term contract this won’t be too much of a problem, especially as transportation is generally cheaper than in other European countries.

TransportationPrice in Euros (€)
Taxi Start (Normal Tariff)3.75 €
Taxi 1km (Normal Tariff)3.00 €
Taxi 1-hour Waiting (Normal Tariff)30.00 €
Gasoline (1L)1.60 €
Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car)24,130.00 €
Toyota Corolla Sedan 1.6l 97kW Comfort (Or Equivalent New Car)25,176.35 €

Cost Of Basic Utilities In Luxembourg

The costs for utility bills in Luxembourg are higher than the average costs found in some European countries. However, utility bills are lower when compared to other countries. The cost of utility varies for each household. It’s influenced by your lifestyle and the number of people living together.

The more people living in a household, the bigger the bill for utilities, for example, you’ll need more gas if many people are living in a house. We’ve prepared a simple guide to making it easier for you to understand the specific impact of each utility and identify potential ways of making savings on that particular utility.

Luxembourg is fairly expensive, but it’s still cheaper than many comparable developed countries. Utilities in Luxembourg are very similar to those in France, Germany, or Belgium. So, when it comes to utility bills, Luxembourg is quite an expensive country to live in.

I’ll bring you all the utilities you need and want in Luxembourg. Whether it’s cable, water, internet or electricity, I will show it to you, so that you don’t have to look for it all by yourself.

Price in Euros (€)
Basic (Electricity, Heating, Cooling, Water, Garbage) for 45m2 Apartment162 €
Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment288.03 €
1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans)0.22 €
Internet (60 Mbps or More, Unlimited Data, Cable/ADSL)55.29 €

Cost Of Entertainment In Luxembourg

In Luxembourg, the cost of entertainment will vary dramatically depending on what you’re looking for. You can get a price range for everything from a movie ticket to a new vacation spot, and it won’t be cheap. Compared to its European counterparts, that’s a fair assessment. So, think about where you will be living and doing most of your traveling before committing to this country as your next home.

When you are living in Luxembourg, there are many things to do and see. It will be hard to know what things cost without doing some research beforehand. With this cost of entertainment list, you’ll be able to better plan your budget and stay within it.

LeisurePrice in Euros (€)
Fitness Club, Monthly Fee for 1 Adult53.60 €
Tennis Court Rent (1 Hour on Weekend)23.78 €
Cinema, International Release, 1 Seat12.00 €
iPad, Wi-Fi, 128Gb150.07 €

Cost Of Childcare and Education In Luxembourg

The cost of education in Luxembourg will depend on which type of school you decide to attend. The government provides free public schooling for children attending kindergarten and grades 1-3. After grade 3, the cost of your education will be solely your financial responsibility.

The cost of private schooling in Luxembourg is high, especially in comparison with wages. The strongest indication of the disparity between costs and salaries in Luxembourg can be seen in the cost of private schools, particularly those which teach foreign languages or have a foreign style of teaching: some of these schools charge tuition fees up to €20,000 per annum.

Higher education in Luxembourg is very affordable. The government provides students with different grants and subsidies which means education costs less than what you’d expect for a country that is so prosperous.

TuitionPrice in Euros (€)
Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child1,216.67 €
International Primary School, Yearly for 1 Child14,777.78 €
International High School, Yearly for 1 Child20,274,54 €
Universities and Colleges10,000.00 €
Monthly expenses (rent, groceries, commuting…) for a Student1,500.00 €

Cost Of Clothing, Wears & Accessories In Luxembourg

You just moved to Luxembourg and are looking for stores where you can buy clothes. What should you know about the cost of clothing in Luxembourg? The costs of clothing in Luxembourg vary depending on the variety of clothing being purchased. The cost of clothing in Luxembourg is the highest in Europe. A pair of jeans for instance will set you back over £100.

Here is a summary of the prices for clothing in Luxembourg expressed by the type of clothing and including an estimation of the average price for an adult staying there for one year.

ClothingPrice in Euros (€)
1 Pair of Jeans (Levis 501 Or Similar)84.67 €
1 Summer Dress in a Chain Store (Zara, H&M, …)40.57 €
1 Pair of Running Shoes (Adidas, Nike…)107.78 €
1 Pair of Men’s Leather Business Shoes148.33 €

Cost Of Personal and Health Care In Luxembourg

Living in Luxembourg, people are frugal when it comes to their care. One of the reasons may be due to of good health services and free medical care. However, even a patient would not like to buy medicines now and then. Healthcare in Luxembourg is generally good and reasonably priced. Health care is free for residents who are European Union citizens. Others can obtain the same services at a lower cost.

Health care in Luxembourg is offered by both private and public organizations. Each of them provides the same level of quality. The residents of non-EU countries must have public or private health insurance from their home country to have access to local healthcare in Luxembourg. Unless you hold a European Health Insurance Card (EHIC) from your home country, you will have to pay for any medical treatment or consultations.

The cost of personal care products is often much lower than in many other European countries. For example, shaving cream is priced at €30 per tube while toothpaste can cost as little as € 1.32 per tube. And if you’re wondering about why health insurance is so important, it’s common for staff members to get health checks twice a year.

Care ProductsPrice in Euros (€)
Cold Medicine (Tylenol, Frenadol, Coldrex, or equivalent brands) 8.00 €
 Box of Antibiotics (12 doses)8.00 €
15 minutes to Private Doctor16.00 €
 Box of 32 Tampons (tampax, ob, …)2.99 €
Deodorant, Roll-on (50ml – 1.5 oz.)2.53 €
Hair Shampoo 2-in-1 (400 ml – 12 oz.)1.45 €
4 rolls of Toilet Paper1.44 €
A Tube of Toothpaste1.32 €
Standard Men’s Haircut in the City28.00 €
Standard Men’s Haircut in the Suburb20.00 €

Cost Of Housing and Accommodation In Luxembourg

The prices of housing and accommodation in Luxembourg range from the highest in Europe to surprisingly affordable. Luxury properties are rare in Luxembourg, but there is a wider range of apartments and properties than in other countries. The national average price per square meter (sq. m.) can cost anywhere between 1,800 EUR per sq. m. and 4,000 EUR per sq. m.

House prices are considerably cheaper than what you would find in most European capitals. The same can be said of rental prices in Luxembourg City, as well as Luxembourgish tax rates that are far below what’s typical throughout Europe.

If you are looking for cheap accommodation in Luxembourg, you will find some nice apartments for rent just outside the city in Dudelange, Belair, and Hollerich. Rooms in students’ residences are also available if you are a student.

One of the most important factors in choosing a city to live in is the cost of living. If you’re looking to buy a house, apartment, or just rent, check out this article where we will guide you through all the costs you need to be aware of when moving here.

RentsPrice in Euros (€)
Monthly Rent for a 1-bedroom Apartment in the City1,700.00 €
Monthly Rent for a 1-bedroom Apartment in the Suburb1,446.88 €
Monthly Rent for a 2-bedroom Apartment in the City2,509.42 €
Monthly Rent for a 2-bedroom Apartment in the Suburb2, 281.91 €
Monthly Rent for a 3-bedroom Apartment in the City3,045.83 €
   Monthly Rent for a 3-bedroom Apartment in the Suburb2,400.00 €

The costs of purchasing an apartment in Luxembourg can vary dramatically depending on the neighborhood, proximity to public facilities, the floor level, and even the number of rooms.

ApartmentPrice in Euros (€)
Price per Square Meter to Buy Apartment in City Centre12,540.93 €
Price per Square Meter to Buy Apartment Outside of Centre9,375.33 €

Luxembourg is among the top five most expensive countries with an annual GDP per capita of € 87,550.00, making it one of the wealthiest in the world. The average monthly salary after tax is around € 3,601.36, which can fend for the need of a single person who has an average monthly cost of € 1,172.57.

However, a bigger budget must be made if you want to meet the need of a small family (4 individuals), the estimated expenses of a family of four are around € 4,365 without rent.

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