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 47th out of 226 cities in the 2024 Mercer Cost of Living Survey, settling in between 58th in 2023 and 52nd in 2022. While much cheaper than Geneva in Switzerland, London in the UK and New York in the USA, Luxembourg is pricier than Stuttgart, Germany; Madrid, Spain and Brisbane, Australia.

That said, if you're an expat moving to Luxembourg for work, you'll likely earn rather well. In fact, the country has the highest minimum wage in the EU, so you 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. Those who plan to stay in Luxembourg for a short time should consider renting. If you're planning to live there permanently, you 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

Public transport has been free in Luxembourg since 2020 for all residents and tourists. You can simply hop on your preferred mode of transit and travel around the country. Fortunately, Luxembourg's public transport network is efficient and reliable.

The only requirement for boarding the bus, tram or train in Luxembourg is providing proof of identity should the conductor request it. You may also opt to bike or walk to work to save money on transport costs and improve your general health.

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, you 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, you 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 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 healthcare in Luxembourg

Healthcare in Luxembourg is of excellent quality, but it can be costly. If you're working in Luxembourg, you 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.

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

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 July 2024.