Cost of living in Luxembourg

Luxembourg is a relatively expensive country, and the cost of living in Luxembourg City is rising. That said, if you're an expat moving to Luxembourg for work, you'll likely earn rather well. If you're looking to build a nest egg while living in Luxembourg, you can consider living in areas outside the city centres to save on accommodation costs. 

Cost of accommodation in Luxembourg

Housing in Luxembourg is expensive and will be one of your 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 here 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.

Renting Accommodation in Luxembourg

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.

Public Transport and Driving in Luxembourg

Cost of groceries

Grocery shopping is rather costly in Luxembourg, but there are ways 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, 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 residents in Luxembourg, 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.

Education and Schools in Luxembourg

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.

Healthcare and Health Insurance in Luxembourg

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 2025.