The Cost of Living in Luxembourg | An Expert Guide

Luxembourg, one of the world's smallest sovereign states and a founding member of the European Union, consistently ranks among the wealthiest nations globally. With a population of approximately 632,000 people, Luxembourg combines historical European charm with modern financial prowess, making it a prestigious but expensive destination for expatriates.

Luxembourg's economy is primarily driven by its robust financial services sector, European Union institutions, and growing technology industry. The country's role as a major financial center and home to several EU institutions has created a highly developed but expensive living environment, with a significant international population.

The expatriate community in Luxembourg is substantial, making up nearly half the population, particularly concentrated in and around Luxembourg City. Many are drawn by opportunities in banking, EU institutions, and international businesses, despite the high living costs. The country's multilingual environment and central European location add to its appeal.

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Regional Comparison

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Housing Costs in Luxembourg

Housing costs in Luxembourg are among the highest in Europe. In Luxembourg City center, a one-bedroom apartment typically rents for 1,800-2,500 EUR monthly, while similar accommodations in outer areas range from 1,400-1,800 EUR. Other towns offer slightly lower prices, though the difference is often minimal due to the country's small size. Most rentals require two to three months' deposit and competition for good properties is intense.

Summary:

• Rent, 1-bedroom apartment (City center): 1,800-2,500 EUR/month
• Rent, 1-bedroom apartment (Outer areas): 1,400-1,800 EUR/month
• Rent, 1-bedroom apartment (Other towns): 1,200-1,600 EUR/month

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Food Costs in Luxembourg

Food expenses in Luxembourg reflect the country's high standard of living. A meal at a casual restaurant costs 18-25 EUR, while dinner at an upscale restaurant might run 40-80 EUR per person. Monthly grocery shopping at supermarkets like Cactus or Delhaize typically costs 400-600 EUR for one person. Cross-border shopping in neighboring countries is common among residents seeking better prices.

Summary:

• Casual restaurant meal: 18-25 EUR
• Upscale dinner: 40-80 EUR
• Monthly groceries (1 person): 400-600 EUR

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Transportation Costs in Luxembourg

Public transportation in Luxembourg is free nationwide, a unique policy implemented to reduce car usage and promote sustainability. This includes trains, buses, and trams within the country. Taxis and ride-sharing services are expensive, with a 5km journey typically costing 15-25 EUR. Many residents own cars despite high purchase and maintenance costs due to the country's wealth and cross-border commuting needs.

Summary:

• Public transport: Free
• Taxi (5km journey): 15-25 EUR
• Car ownership costs: High due to insurance and maintenance

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Healthcare Costs in Luxembourg

Healthcare in Luxembourg operates through a state health insurance system, with mandatory enrollment for residents. The system covers about 80-90% of medical costs. Private health insurance, which some choose for additional coverage, typically costs 100-200 EUR monthly per person. A private doctor's consultation costs 50-70 EUR before reimbursement, while specialist visits range from 70-120 EUR.

Summary:

• Private health insurance: 100-200 EUR/month
• Doctor's consultation: 50-70 EUR
• Specialist visit: 70-120 EUR

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Utility Costs in Luxembourg

Utility costs in Luxembourg are moderate compared to overall living costs. Monthly utilities including electricity, heating, water, and garbage collection typically range from 150-250 EUR for an apartment. Internet service costs 40-60 EUR monthly for high-speed connections. Mobile phone plans with data typically range from 20-40 EUR monthly.

Summary:

• Basic utilities: 150-250 EUR/month
• Internet: 40-60 EUR/month
• Mobile phone plan: 20-40 EUR/month

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Example Monthly Expenses in Luxembourg

Average monthly expenses for a single person living in Luxembourg City:

• Rent (1-bedroom, decent area): 2,000 EUR
• Utilities: 200 EUR
• Food: 500 EUR
• Transportation: 0 EUR (free public transport)
• Healthcare (insurance): 150 EUR
• Internet/Phone: 80 EUR
• Entertainment: 400 EUR
• Total: 3,330 EUR

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Cost of Living vs Quality of Life Correlation

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If you want to know more about Luxembourg and the cost of living there you can also check out the Luxemburg page.