Cost of living in Luxembourg

Luxembourg is a fairly expensive country, and the cost of living is highest in the capital, Luxembourg City. That said, if you’re moving here for work, you’ll probably earn well, since the country has the highest minimum wage in the EU and salaries to match. If you’re looking to build a nest egg while you’re here, you can look at areas outside the capital to keep your accommodation costs down.

Cost of accommodation in Luxembourg

Accommodation in Luxembourg will be one of your largest expenses, particularly if you want to live centrally. Renting is suitable if you’re only here for a short stint. If you plan to settle, buying is worth a look.

Property prices and rents are steepest in the capital, and the closer you get to the centre, the more you’ll pay. Rents, especially, are high, and new tenants usually pay a good deal more than those already settled in a place. Utilities are an extra cost, although your energy bills will be broadly in line with neighbouring countries.

Renting Accommodation in Luxembourg

Cost of transport in Luxembourg

Public transport in Luxembourg has been free since 2020, when it became the first country in the world to scrap fares nationwide. You can hop on a bus, tram, or train and travel the length of the country without paying a cent. The network is efficient and reliable. You’ll only need a ticket for first-class train seats and for trips that cross into France, Belgium, or Germany.

If you drive, petrol is cheaper here than in the surrounding countries thanks to low fuel duty, so filling up is one of the few real bargains. Parking in the capital, though, is limited and expensive.

Public Transport and Driving in Luxembourg

Cost of groceries in Luxembourg

You’ll pay more for groceries in Luxembourg than in much of Europe, but there are ways to trim the bill. Cooking at home rather than eating out is an obvious savings opportunity, and local markets can undercut supermarkets on fresh produce. Some chains are cheaper than others, so it pays to shop around.

Plenty of residents near the border stock up in France or Germany, where everyday staples are cheaper, and it actually works both ways. Petrol, coffee, alcohol, and tobacco are cheaper on the Luxembourg side because of the low duties, so a fair few shoppers come the other way too.

Cost of entertainment and eating out in Luxembourg

Luxembourg has excellent restaurants, and you can eat your way through cuisines from all over the world, but eating out here is expensive.

There’s plenty on beyond restaurants, from cultural events to a busy calendar of festivals such as the centuries-old Schueberfouer funfair each summer. If you’re watching your spending, you’ve still got good options. Several of the national museums charge little or nothing to get in, and the parks and hiking trails around the country are free.

Cost of education in Luxembourg

Many expat parents balk at the traditional state schools in Luxembourg, which teach in Luxembourgish, German, and French, even though they’re free. There’s a free alternative, though. The government runs a growing number of public international schools, some of which teach in English, that follow well-known curricula such as the International Baccalaureate. These schools keep classes small and give priority to families moving to Luxembourg, which has made them a real draw for expat families.

Private international schools are still an option, but the fees can be steep, so you’ll want a school allowance written into your package if you take that route.

Education and Schools in Luxembourg

Cost of healthcare in Luxembourg

The quality of healthcare in Luxembourg is excellent, and working residents are covered by the national health fund, the Caisse Nationale de Santé (CNS). The contributions are deducted directly from your salary, and your employer pays an additional share on top. The CNS reimburses most of the cost of your care, although you’ll often pay upfront and claim the money back, and it won’t cover every expense.

To make up the difference, most residents take out a complementary insurance policy, and some employers fold one into their benefits package. You can also go private for quicker access to specialists, although you’ll pay more for it.

Healthcare and Health Insurance in Luxembourg