Cost of living in Luxembourg: how to figure out the monthly budget?

Accommodation costs in Luxembourg

Renting an apartment or buying real estate is rather expensive in the Grand Duchy due to big demand and developing budget-friendly real estate market. Buying property is very viable investment option in the country, because market prices grow each year. But if you are just moving and planning to stay in the country for a long time, it is better to rent first to assess the living conditions and different communes and neighbourhoods, they are quite different. Later, you can think about buying the property in one of them.

Rental costs in the City

Luxembourg is an expensive city for renters. According to Immotop, in April 2024, the average price for rental properties reached a new high of 27.15 euros per square meter per month. This represents an 11% increase compared to April 2023.

The average rent prices for different types of accommodations are about:

In order to save some money choose a commune outside of Luxembourg City, or even an accommodation outside the country, if you do not need a registration in the country for residence — in bordering France, Germany or Belgium. Prices there are much lower, but check your documents requirements in case you want to be a resident of Luxembourg. Most of the time you will need to be registered here.

Real estate costs in Luxembourg

Luxembourg's property market shows a stark difference in prices between regions. In 2024, those looking to buy faced the highest costs in the Center region, where properties sold for an average of 10,879 euros per square meter. This lowers the price tag in the North region, where properties were the cheapest nationwide at 5,996 euros per square meter. Interestingly, the rental market mirrored this trend. The Center region again commanded the highest rents at 30.80 euros per month per square meter, while the North offered the most affordable options at just 18.45 euros per month per square meter.

The average purchase prices for different types of accommodations are about:

If you want to buy a property with mortgage payments, you need to be prepared to pay a deposit. It is usually 20-25% of the price of the property. Read more about buying the property in our dedicated articles on the website:

Utility costs when living in Luxembourg

Photo by enovos

The cost of basic utilities in an apartment of 85 square meters in Luxembourg will come up to about 230 euros, including electricity, heating, air conditioning, water and garbage disposal. Compared to the EU average figures (0.13 euros per kWh), electricity prices in Luxembourg are higher, almost 0.15 euros per kWh.

Phone and internet services

Choosing a budget fitting option fully depends on how often you use internet, how much do you need, and if you travel a lot, etc. Generally speaking, there are several telecommunication companies in Luxembourg, offering packages for connection and telecom services. Most of them offer a number of cell phone service packages, TV and Internet.

Here are the most popular providers in Luxembourg:

• POST Luxembourg,
• Eltrona,
• Orange,
• Tango,
• Free.

When it comes to choosing and determining the costs, it is hard to name a price. It depends on the tariff, suiting your needs, data usage and more factors, such as family plans and a need for TV packages at home. Take into consideration a few details.

What do you use more?

Internet, calls, sms? If internet, how important is communication via messengers - WhatsApp, Telegram, Viber. This will help you make a more informed choice of tariff.

How far you plan to travel around?

If your work and life are mostly based in Luxembourg, it is worth paying attention to unlimited tariffs within the country. They usually have a good price and a large internet limit. But! Such offers may not work outside the country. Therefore, if you will constantly travel to Benelux or neighbouring countries, it is worth taking a tariff that exactly allows you to call and access the Internet outside the country.

Do you need roaming?

Officially, roaming charges in the EU were abolished in 2017. However, it's worth checking with your provider to see if there really is no roaming throughout the EU without any conditions.

Healthcare costs

The Luxembourg public health system provides all residents with free basic healthcare services.

• However, employees in the country pay monthly fees of 2.8% of their gross earnings to the healthcare fund. Employers usually cover half of the fees on behalf of their employees. This is called the social medical insurance system.
• Self-employed people are also obliged to make payments according to the type of their occupation in order to receive healthcare.
• Due to the higher risk of necessary medical treatment, manual workers pay a higher rate of almost 10% while other professionals pay 5.2%.

These fees cover residents with health care insurance for giving birth, rehabilitation, hospital treatment, medical appointments and consultations, and even pharmaceuticals. However, you will need to pay for treatment yourself first, and later you will be reimbursed by the state if you have contributed your fees.

Although the public health system is sufficient for most expats, you can also get private health insurance.

Health

Deductions

Social

Our comprehensive guide to healthcare in Luxembourg

Costs of childcare in Luxembourg

In most countries, the childcare costs are pretty high and due to the high overall cost of living in Luxembourg, it is difficult to find affordable childcare services.

Families with children can choose a nursery or creche, personal babysitter or an au pair (a helping person to be integrated into family life):

Education costs in Luxembourg

The Grand Duchy ranks high in the OECD Better Life Index, and education becomes one of the cornerstones that guarantees the progression of the quality of life for the residents of the country. State promotes lifelong learning and provides options for education at any age: starting with compulsory education for kinds since age of 3-4 years old, and promoting university education with affordable fees, even for international students.

Food and meal prices in Luxembourg

Luxembourg has one of the most exciting culinary scenes in Europe: Michelin-starred restaurants, gourmet chains and international cuisine to suit all tastes. But you can also find budget options, farmers' markets and much more. 

Groceries

The prices for food will mostly depend on where you buy groceries, if you cook at home, what are your dietary preferences and more. Luxembourg chains, such as Cactus, Alima and Co-Op may be slightly more expensive than foreign supermarkets present in the country, like Belgian and French networks such as Auchan, Match and Delhaize. If you are looking for the lowest prices possible for food, visit Aldi and Lidl – they have several stores in Luxembourg.

Costs of restaurant meals

A dinner in a high-range restaurant will cost you about 75 euros per person on average. For a lunch in a local cafe you will more likely pay around 15-20 euros per person. If you have a tighter budget, the standard lunch in Luxembourg can cost you 9 to 17 euros, but it will consist of sandwiches and snacks at the price of 5.50 to 10 euros. 

Beer, wine and other drinks

A pint of local or imported beer in a pub or restaurant would cost about 5-7 euros. Meanwhile, you can find much cheaper beers in supermarkets: from 2 to 3.50 euros. A bottle of mid-range wine costs about 15 euros, and the price can go as high, as you want.

Transportation costs in Luxembourg

Luxembourg has an excellent public transport network. It consists of buses, trains, trams, and even funiculars. Moreover, public transport is free in the Grand Duchy.

Taxi fares in the Grand Duchy are a completely different story. The basic rate is about 6 euros, and the average price per kilometer is around 3 euros.

If you live in one of the villages outside of Luxembourg, you will probably have to go to work every day and shopping on occasion. Gasoline prices in Luxembourg are about 1.50 euros per liter of unleaded petrol and 1.39 euros per liter of diesel.

Leisure time in Luxembourg

There are many things you can do in Luxembourg, and not all of them have to be paid for. There are various events, master classes and workshops, fairs and exhibitions that offer the whole family a chance to have fun on a budget. Take a look at our dedicated events page where we post the latest happenings and recommend activities.

Inflation in Luxembourg

This indicator shows if the purchasing power of money will fall and how exactly: it basically means that you can buy less food for the same amount of money. The inflation rate is an important indicator for understanding the cost of living in Luxembourg. 

According to STATEC, the statistical office of Luxembourg, inflation is forecasted to be 2.2% in 2024 and 3.3% in 2025. The rise in energy prices is expected to be the main driver of inflation in 2025. If the government dismantles the energy price shield, inflation could reach 3.4% in 2024 and 6.6% in 2025.

Cost of living in Luxembourg for a family

The final cost can vary significantly depending on several key factors. These include household size, pet ownership, and individual lifestyle choices. For example, larger families will naturally incur higher expenses. Similarly, pet owners will have additional costs for food, veterinary care, and other pet-related needs. Finally, lifestyle choices significantly impact living expenses. Those who prioritise health and well-being may opt for organic groceries and gym memberships, leading to a higher cost of living. Conversely, habits like smoking or excessive alcohol consumption can also lead to increased expenses, albeit in different areas.

Comparison of living costs in Luxembourg City and other European capitals

Generally speaking, the cost of living in Luxembourg City can also be compared with other capitals: it is 3% more expensive to live here than in Berlin, 4% more expensive than in Brussels and 11% more expensive than in Rome.

Rent

Average rents in Luxembourg City are significantly higher than in cities such as Berlin, Paris and Madrid. For example, a one-bedroom apartment in the center of Luxembourg can cost around 1,700 euros per month, while a similar apartment in Berlin costs around 1,000 euros per month.

Food

Food prices in Luxembourg are generally higher than in many other European cities. For example, a loaf of bread that costs 1 euro in Berlin might cost around 2 euros in Luxembourg.

Restaurants and cafés

Eating out in restaurants and cafés can also be relatively expensive in Luxembourg compared to other cities. The average price of a three-course meal for two people in a mid-range restaurant is around 80 euros.