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Cost of living in Luxembourg: rent, utilities, food and entertainment

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Luxembourg
Cost of living in Luxembourg: rent, utilities, food and entertainment

Luxembourg boasts a strong economy and politics. Although it is a fairly expensive country, the Grand Duchy is a popular destination for foreigners - so much so that almost half of Luxembourg's population is made up of foreign nationals. Find out about the total cost of living in Luxembourg per month, housing costs, utilities, healthcare and food prices

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Luxembourg is a rather expensive country. The capital of the state, the city of Luxembourg, ranks 52 out of 227 cities in the cost of living survey by the Mercer company. Although Luxembourg is much cheaper than Switzerland, the UK and the USA, it is more expensive than Spain, the Czech Republic and New Zealand.

At the same time, the economy of Luxembourg is flourishing, the state has a low unemployment rate. The Grand Duchy is a popular destination for foreigners – almost half of Luxembourg's population is made up of expats. It also has the highest minimum wage in the EU.

Luxembourg scores quite well on the Quality of Life Index. The country ranks highest in income and above average in work-life balance, community engagement, health and well-being, housing and environmental quality.

How much will you spend to live in Luxembourg? Detailed analysis in our material.


Total cost of living in Luxembourg per month


Estimated monthly expenses for one person in 2023 – 3210 euros. The average cost of living in Luxembourg for a family of four can be between €6,000 and €8,000 per month, including rent, utilities, healthcare and childcare.


Cost of housing in Luxembourg


In general, the cost of housing in Luxembourg is high. In 2022, real estate in the country was 87% more expensive than the EU average. Expats who move to Luxembourg for a short period should consider renting, those who plan to stay in the country for permanent residence should think about buying real estate.


- The average cost of renting a one-room apartment in the central part of Luxembourg is about 1,610 euros per month. For a three-bedroom apartment, you will have to pay from 4,000 euros.

Overall, the cost of renting a home is equivalent to 38% of income for a couple and 55% for a single person.

In addition to the monthly rent, you should be prepared to pay a hefty security deposit - the amount of rent for a period of 1 to 3 months, depending on the landlord.

Housing outside the city of Luxembourg is slightly cheaper. Many expats, in order to save money, even rent housing outside the country - in the border cities of France, Germany or Belgium. However, in this case, check the document requirements if you plan to obtain Luxembourg residency.


- When planning to buy real estate in Luxembourg, expect that the average price per square meter ranges from 7,000 to 15,000 euros. A one-room apartment in the central part of the capital can cost up to 500,000 euros, and a three-room apartment - about 1,000,000 euros. However, the further from the center, the lower the price. To purchase real estate, you can take out a mortgage, but the expat must be ready to make a deposit, usually 20-25% of the cost of the home.


Prices for utilities in Luxembourg


The total cost of utilities in an 85-square-meter apartment is approximately 250 euros per month - this is the payment for electricity, heating, water and garbage collection.

A package of Internet, television and telephone costs approximately 40 to 80 euros per month. Many telecommunication companies operate in the state - POST Luxembourg, Eltrona, Orange, Tango and Luxembourg online.


The cost of medical services in Luxembourg


The state health care system provides all residents of the country with free medical care.

Employees and self-employed persons pay 2.8% of their earnings to the health care fund every month. Employers usually cover 50% of the cost for their employees. This is called the social health insurance system.

In addition, family members are also insured through workers who pay social security contributions, meaning that children receive insurance from their parents. Those who have no income or are unable to contribute due to low income are entitled to receive basic health care with public funds.

State insurance covers the payment of rehabilitation, hospital treatment, childbirth, medical appointments and consultations, and even the purchase of pharmaceuticals.

Although the public healthcare system is sufficient for most expats, many expats also take out private health insurance policies.


Prices for education in Luxembourg


Public schools are free for children of expats who are registered in the Luxembourg social security system. Also, many children of foreigners attend international schools in Luxembourg. However, tuition fees here are very high, around 3,000 euros per year for pre-school institutions and up to 20,000 euros for schooling for children under the age of 16. The cost of education increases every year, depending on the age of the student.

Higher education in Luxembourg is much cheaper - 200 or 400 euros per semester for most bachelor's programs at public universities. This indicator is higher in private educational institutions.


The cost of food in Luxembourg


The cost of buying food in Luxembourg is about 25% higher than in most EU countries. The average budget for the purchase of products for a family of 2 people is about 450€ per month.

However, the cost depends significantly on where you plan to buy them. Local supermarket chains Cactus and Alima can be a bit more expensive than some foreign chains such as Auchan and Match & Smatch. For the lowest prices on groceries, head to Aldi and Lidl, both of which have several stores in Luxembourg.

Approximate prices for products in Luxembourg: a bottle of water 0.5 l - 4 euros, tomatoes (1 kg) - 4 euros, apples (1 kg) - 3 euros, milk (1 liter) - 1 euro, ground beef (1 kg) - 18 euros, eggs (12 pcs.) - 3.5 euros, shampoo - 4 euros, shower gel - 2.5 euros.


Restaurants and entertainment in Luxembourg


Lunch in a middle-class restaurant will cost an average of about 75 euros per person. If the budget is limited, you can also enjoy quality food in fast food establishments. The cost of lunch here is 10-25 euros per person.

Half a liter of local or imported beer in a pub or restaurant will cost you about 5 euros. At the same time, you can find beer much cheaper in supermarkets: from 2 to 3.5 euros. A bottle of mid-range wine costs around 10 euros.

A gym membership is 20–80 euros, depending on the duration. Renting a tennis court for an hour is about 19 euros.

One movie ticket costs 10-16 euros, as in other EU countries.


The cost of transport in Luxembourg


Luxembourg has an excellent public transport network, represented by buses and trains. A significant advantage is that trips on it in the country are free.

The only exception is first class travel, which costs €3 for two hours or €6 for a day ticket (valid until 04:00 the next day).

The starting fare for a taxi is around 4 euros, and the average cost per kilometer is 3 euros.

The cost of fuel is 1.5 euros per liter.


Moving to Luxembourg will be a new stage in your life and career, and the high cost of living in the country will be compensated by a considerable salary.





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Checklist for obtaining a visa and necessary documents in Luxembourg;

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