Luxembourg is a relatively expensive country. The capital, Luxembourg city, placed 63rd out of 209 cities in the Mercer Cost of Living Survey for 2021, moving up 20 places from 83rd in 2020. While much cheaper than Geneva, London and New York, Luxembourg is more expensive than Madrid, Prague and Auckland.

That said, expats do tend to earn rather well in Luxembourg. In fact, it has the highest minimum wage in the EU, and also ranked first for disposable income on the OECD Better Life Index. Expats should therefore be able to afford a comfortable life in the country.


Cost of Accommodation in Luxembourg

Housing is expensive in Luxembourg and will be an expats biggest expense. Those who are only planning to stay in the country short term should rent, while those making a permanent move would do well to buy property in Luxembourg. Renting is incredibly costly, especially in the capital. Utilities also tend to be pricey, with electricity prices in Luxembourg being higher than the EU average.


Cost of healthcare in Luxembourg

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 expats salary, while their employer also pays towards it on their behalf. The public healthcare system offers excellent services and treatment. That said, private healthcare is also available for those who want more comprehensive cover, but expats will pay quite a lot for this.


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, but the fees can be exorbitant. Expats should therefore try to negotiate a school allowance into their employment package.


Food and eating out in Luxembourg

Grocery shopping is rather costly in Luxembourg. While certain supermarkets are cheaper than others, expats should expect to pay more for groceries in Luxembourg than in many other European countries.

Similarly, eating out is expensive in Luxembourg. Cheaper restaurants do exist, but even at these establishments, expats can expect to pay at least EUR 18 for a meal.


Cost of living chart for Luxembourg

Prices may vary depending on product and service provider. The list below shows average prices for Luxembourg in February 2022.

Accommodation 

Three-bedroom apartment in city centre

EUR 3,250

Three-bedroom apartment outside city centre

EUR 2,500

One-bedroom apartment in city centre

EUR 1,620

One-bedroom apartment outside city centre

EUR 1,270

Shopping

Eggs (dozen)

EUR 3.20

Milk (1 litre)

EUR 1.20

Rice (1kg)

EUR 1.45

Loaf of white bread

EUR 2.50

Chicken breasts (1kg)

EUR 11.25

Pack of cigarettes (Marlboro)

EUR 5.30

Eating out

Big Mac Meal

EUR 10

Coca-Cola (330ml)

EUR 2.95

Cappuccino 

EUR 3.55

Local beer (500ml)

EUR 5

Three-course meal for two at a mid-range restaurant

EUR 75

Utilities

Mobile-to-mobile call rate (per minute)

EUR 0.20

Internet (uncapped ADSL or cable – average per month) 

EUR 56

Basic utilities (per month for small household)

EUR 243

Transport

Taxi rate (per kilometre)

EUR 3

Bus/train fare in the city centre 

EUR 0

Petrol/gasoline (per litre)

EUR 1.25