Cost of living in Luxembourg

Luxembourg is a relatively expensive country, and the cost of living in Luxembourg is on the rise. The capital placed 58th out of 227 cities in the 2023 Mercer Cost of Living Survey, settling in between 52nd in 2022 and 63rd in 2021. While much cheaper than Geneva, London and New York, Luxembourg is pricier than Stuttgart, Madrid and Auckland.

That said, expats do tend to earn rather well in Luxembourg. In fact, the country has the highest minimum wage in the EU, and expats should be able to afford a comfortable life in the country.

Cost of accommodation in Luxembourg

Housing in Luxembourg is expensive and will be one of an expat's largest expenses, especially in the city centre. Expats who plan to stay in Luxembourg for a short time should consider renting, while those who plan to live there permanently may benefit from buying property. 

Renting is incredibly costly, especially in the capital. Utilities also tend to be pricey, with electricity prices in Luxembourg being particularly high.

Cost of transport in Luxembourg

The cost of transport in Luxembourg can also be expensive, but there are options for expats to save money. The public transport system is efficient and reliable, and there are discounts available for long-term passes. Some expats may opt to bike or walk to work to save money on transport costs and improve their general health. 

Cost of healthcare in Luxembourg

Healthcare in Luxembourg is of excellent quality, but it can be costly. Expats working in Luxembourg will be eligible to receive public healthcare for free or at highly subsidised rates. Compulsory contributions to the healthcare system are deducted from an expat's salary, while their employer also pays towards it on their behalf. 

Expats should consider getting health insurance to cover any unexpected medical expenses. Some employers may offer health insurance as part of their benefits package. Expats who want more comprehensive healthcare coverage can opt for private healthcare, but this option can be costly.

Cost of education in Luxembourg

While public schooling is free for all legal residents, the language barrier deters many expats from sending their children to one of these institutions. For this reason, international schools are generally the number one option for expats. The fees can be high, but the facilities and standard of education will typically be exceptional as well. Expats should therefore try to negotiate a school allowance into their employment package.

Cost of groceries

Grocery shopping is rather costly in Luxembourg, but there are ways for expats to save money. Shopping at local markets and cooking meals at home can be more cost-effective than eating out. Although some supermarkets in Luxembourg offer lower prices, expats should still anticipate higher grocery costs compared to many other European countries.

Cost of entertainment and eating out in Luxembourg

Luxembourg is home to excellent restaurants offering a wide range of cuisines, but accessing these establishments comes at a high price. Cheaper restaurants do exist, but even at these establishments, expats can expect to pay fairly high prices for a meal. 

Entertainment options in Luxembourg are varied, and there are many cultural events and festivals throughout the year. To save money, expats on a budget can explore free or low-cost activities, such as visiting parks or museums and hiking or trail running.

Cost of living chart for Luxembourg

Prices may vary depending on the product and service provider. The list below shows the average prices for Luxembourg in February 2024.