Luxembourg vs. Italy for moving and living
Decisions, decisions, life is full of them, and if you’re here, it's likely because you’re weighing the pros and cons of living in Luxembourg or Italy. Which country offers a better option for moving?
While we’ll present many objective factors in this comparison, it’s very important to remember that personal preferences play a significant role in determining which country might be better for you. Ultimately, factors like lifestyle, culture, and your individual needs should guide your decision.
Luxembourg vs Italy: briefly about the main things
We’ll start our comparison by exploring some essential points defining Luxembourg and Italy. We will elaborate on key aspects such as land area, population, culture, climate, language and lifestyle. These factors form the foundation of each country’s identity and will provide a solid basis for understanding the broader differences between them.
Population and territory
Let's begin by comparing the size and population of Luxembourg and Italy. As expected, Italy is significantly larger and more populated, but by how much? Luxembourg is one of the smallest countries in Europe. In contrast, Italy is huge, meaning Luxembourg could fit into Italy about 116 times.
When it comes to population, Italy also dwarfs Luxembourg. In 2023 Italy had 58,997,201 people, nearly 89 times more than in Grand Duchy. Interestingly, the population trends in these countries reveal a lot.
Since 2012, Luxembourg's population has grown by 135,956 people, an increase of 25.90%. Meanwhile, Italy's population has decreased by 397,006 people, a decline of 0.67%, which is quite unusual in the European context.
Expat population
In terms of demographic composition, Luxembourg stands out for its high percentage of foreign residents. As of January 2023, 50.41% of its population was foreign-born, with most coming from Portugal and France. Italy, on the other hand, is far less international, with only 10.88% of its residents born abroad.
General vibe compared
When it comes to culture, lifestyle, climate, and language, Luxembourg and Italy offer distinct experiences that reflect their unique histories and geographical positions. Despite being European neighbours, the vibe in each country is quite different, shaped by a blend of tradition, modernity, and the diverse influences that have touched their shores.
Luxembourg is uniquely multilingual, with three official languages: Luxembourgish, French, and German. Most residents are fluent in all three, and English is also widely spoken, especially in business and international settings. This linguistic diversity reflects Luxembourg’s cultural blend and its role as a European crossroads.
Italy, in contrast, is predominantly Italian-speaking, although each region has its own dialects and linguistic nuances. While Italian is the official language, regional dialects are still spoken and cherished as a vital part of local identity. English is less commonly spoken in rural areas but is increasingly understood in tourist destinations and major cities.
The climate in Luxembourg is temperate, with four distinct seasons. Winters can be cold and damp, while summers are mild, rarely reaching extreme temperatures. This moderate climate contributes to Luxembourg’s lush green landscapes, making it ideal for outdoor activities like hiking and cycling.
Italy, in contrast, offers a more varied climate due to its elongated shape. Northern Italy experiences a climate similar to Luxembourg’s, with cold winters and warm summers. However, as you move south, the climate becomes increasingly Mediterranean, with hot, dry summers and mild, wet winters.
Great weather = great life
The sunny climate in much of Italy encourages an outdoor lifestyle, with a focus on dining al fresco, beach days, and open-air markets.
The lifestyle in Luxembourg is often described as calm and orderly, with a strong focus on work-life balance. The country’s small size means that everything is easily accessible, from nature trails to high-end shopping. Luxembourgers value privacy and quiet, making it a peaceful place to live. The international nature of the country means there’s a constant blend of traditions and cultures, adding a dynamic element to daily life.
In Italy, the lifestyle is more laid-back and sociable. Italians place a high value on family, food, and social connections. Life moves at a slower pace, especially in the South, where “la dolce vita” (the sweet life) is more than just a phrase, it’s a way of living. Meals are lengthy, social affairs, and there’s a strong emphasis on enjoying the moment. Whether it’s a Sunday family lunch or a spontaneous gathering with friends, Italians cherish their time together.
Luxembourg and Italy are both rich in cultural heritage, but they express it in different ways. Luxembourg is heavily influenced by its neighbours France, Germany, and Belgium. This melting pot is reflected in its architecture, cuisine, and even its multilingual population. Luxembourg is a hub for international institutions and businesses, making it a cosmopolitan place where multiple cultures intersect. This diversity is celebrated through various cultural festivals, museums, and galleries, giving Luxembourg a sophisticated yet understated cultural vibe.
Italy, on the other hand, is synonymous with cultural grandeur. As the birthplace of the Renaissance and home to countless UNESCO World Heritage sites, Italy’s culture is deeply embedded in its art, architecture, music, and cuisine. Italians take immense pride in their regional traditions, from the fashion-forward streets of Milan to the historic ruins of Rome and the artistic treasures of Florence. Italy’s cultural scene is vibrant and accessible, with a deep appreciation for history, beauty, and the arts. The Italian lifestyle often revolves around social gatherings, family, and enjoying life’s pleasures, whether through food, art, or leisurely strolls through picturesque cities.
Luxembourg is a great place to live. You can find a good job with good pay and enjoy a relaxed city life. Italy is a known place for many looking for luxurious lifestyle and laid-back atmosphere. No wonder, it is famous for its riposos and great cuisine, architecture and many famous artists.
Quality and cost of life
We will now focus on two key aspects of the comparison between Luxembourg and Italy: the quality of life and the cost of living. These factors are often closely related and play an important role in determining where you should live.
Assessing the quality of life is inherently subjective, but certain metrics can provide insight into how citizens in Luxembourg and Italy perceive their well-being. One such metric is the Global Life Satisfaction Index, a survey conducted across Europe where citizens rate their life satisfaction on a scale from 0 (very dissatisfied) to 10 (very satisfied).
According to this index, the average life satisfaction score in Europe is 7.1. Luxembourg scores slightly above this average with a 7.2, indicating a generally high level of contentment among its residents. Italy, on the other hand, scores a bit lower at 7.0 but still remains close to the European average.
Another useful tool for measuring quality of life is the Quality of Life Index provided by Numbeo, which aggregates eight sub-indices, including purchasing power, safety, health care, and pollution. In this index, Luxembourg scores 225.71, significantly higher than Italy's score of 153.13.
| Index | Luxembourg | Italy |
| Purchasing Power | 199.83 | 91.77 |
| Safety | 65.88 | 53.19 |
| Healthcare | 74.71 | 65.25 |
| Climate | 82.62 | 91.31 |
| Cost of Living | 68.49 | 56.4 |
| Property Price to Income Ratio | 8.15 | 8.99 |
| Traffic Commute Time | 28.15 | 32.35 |
| Pollution | 23.27 | 53.85 |
| Quality of Life | 225.71 | 153.13 |
This suggests that Luxembourg generally offers a higher quality of life, with better access to services, higher safety levels, and greater overall satisfaction among its residents.
This discrepancy between the results of the first and second studies shows how subjective this aspect is and how difficult it is to estimate. A better approach to this point would be to analyse the different characteristics of each country and see how they fit with your tastes and preferences.
Cost of living
Next, let’s explore the Luxembourg vs Italy cost of living comparison, which is crucial for anyone considering a move to either country. To get a clear picture, we’ll look at data from Numbeo, the world's largest database on the cost of living, which provides a range of indexes comparing global cities against New York City as a baseline.
The most comprehensive of these is the “Cost of Living Plus Rent Index,” which estimates the cost of consumer goods, services, and rent in comparison to New York City. According to this index, the cost of living in Luxembourg is significantly higher than in most European cities, including many in Italy. However, the exception is Milan, where the cost of living is slightly higher than in Luxembourg.
Overall, Luxembourg’s high cost of living is reflective of its status as a wealthy, small nation with a strong economy, high wages, and a high demand for housing. In contrast, Italy, with its more varied economy and regional differences, generally offers a lower cost of living, especially outside major cities like Milan or Bologna.
Employment and job opportunities
We have arrived at a crucial point: employment and work opportunities. Both countries offer ample opportunities, but each excels in different areas.
Both Luxembourg and Italy are prominent destinations for international professionals, though their approaches and scales differ significantly due to their size and economic environments.
BYOB (Bring Your Own Business)
Both Luxembourg and Italy are ideal countries to take your business there or to start one, if you want more information on this subject we recommend a couple of sites with information on it, one for Luxembourg and one for Italy.
Top industries
Luxembourg's economy is renowned for its dynamism and openness, consistently ranking among the top in global competitiveness, digitalisation, and innovation. Historically, the steel industry was the cornerstone of Luxembourg’s economic success, making the country a leading global steel producer in the mid-20th century. The sector significantly contributed to the nation's wealth and employment, but after the steel crisis of the 1970s, Luxembourg's government undertook substantial efforts to diversify its economy.
One of the most notable achievements in this diversification was the establishment of Luxembourg as a major financial centre. Today, the financial sector is a vital component of Luxembourg's economy, representing about 25% of the country's GDP. As of April 2024, Luxembourg is home to 117 banks, including major international financial institutions like JP Morgan and Deutsche Bank.
The country has also become a prominent European hub for investment funds, attracting numerous multinational corporations such as Pepsi, IKEA, and Amazon. This shift towards finance and high-end services has transformed Luxembourg into one of the world’s leading financial hubs.
How to get a job in Luxembourg: application, interview, contract
Italy boasts a diverse and advanced economy, ranking as the third-largest in the Eurozone and the thirteenth-largest globally in terms of GDP by purchasing power parity. The Italian economy is characterised by its strong presence in several key sectors.
- Agriculture
Italy is a major player in global agriculture, particularly known for its wine production. Although agriculture constitutes a smaller portion of Italy’s GDP, it remains crucial in certain regions, with products like wine and olive oil enjoying international acclaim.
- Manufactures
The manufacturing sector is the backbone of Italy's economy, with the country ranking as the sixth-largest global producer. Italy excels in producing high-quality goods, especially in niche markets. The automotive industry features luxury brands like Ferrari and Lamborghini, which are symbols of excellence and innovation. Additionally, Italy is a leader in machinery, design, and fashion, all contributing significantly to its economic strength.
- Natural resources
Italy has moderate reserves of natural gas, primarily located in the Po Valley and under the Adriatic Sea. It also produces notable mineral resources, including pumice, pozzolana, and feldspar. The extraction of Carrara marble, renowned for its quality, is particularly significant.
- Financial sector
Italy's financial sector includes historic institutions such as Banca Monte dei Paschi di Siena, one of the world’s oldest banks. Milan stands out as a global financial center and the capital of fashion. Italy’s role in international trade is substantial, ranking as the tenth-largest exporter in the world as of 2019, with most trade connections within the European Union.
Professions in-demand in Luxembourg vs. Italy
The following table shows the most in-demand professions in both countries, with data sourced from Luxembourg's ADEM (Agence pour le Développement de l’Emploi), while data for Italy are sourced from Schengen News.
| 🇱🇺 Luxembourg | 🇮🇹 Italy |
| Analysis of loans and banking risks | Manufacturing labourers |
| Bank customer management | Welders and flame cutters |
| Office and middle management in the financial | Bakers, pastry cooks, and confectionery makers |
| Paving and restoration of pavements | Food service counter attendants |
| Management and engineering industrial researchers | Healthcare assistants |
| Production management and engineering | Medical imaging and therapeutic equipment technicians |
| Installation and maintenance of industrial equipment | Computer network and system technicians |
| Caregiver Assistant / Nurse | Physicians and engineering science technicians |
| Psychologist | Software and applications developers, analysts |
Attracting international workers
In 2023, Luxembourg welcomed 3,151 international workers. Italy, being a larger country with a more diverse economy, naturally experiences higher levels of labor immigration. In 2023, Italy hosted 38,103 international workers, almost 12 times more.
The data highlight a somewhat particular labor immigration trend in Italy over the years. The country experienced a spectacular peak in 2010, with the arrival of more than 350,000 international workers. However, this number saw a sharp decline, reaching a low of 8,409 in 2017.
Since 2021, the numbers have been on the rise again, although there was a slight decrease in the most recent year. In contrast, Luxembourg's immigration trends have been more stable.
Minimum wages and salaries
In Luxembourg, there are two minimum wages: one for unskilled workers and another for skilled workers. The minimum wage for an unskilled worker aged 18 or older is 2,570.93 euros, while for a skilled worker, it is 3,085.11 euros. According to the International Labour Organization (ILO), the average monthly salary in Luxembourg in 2022 was an impressive 7,044 euros.
No minimum wage
In contrast, Italy does not have a national minimum wage. It is one of the five European Union countries without a statutory minimum wage, which has been a topic of ongoing political and social debate. Instead, wages in Italy are determined through collective bargaining agreements negotiated between trade unions and employers’ organisations.
The collective agreements, which began to take shape after World War II, cover not only wages but also working conditions and other employment terms. Currently, there are over 800 collective agreements in Italy, leading to significant variations in wages across different professional categories. The lack of a unified minimum wage means that adherence to these agreements can be inconsistent, with some companies potentially paying less than what is agreed upon.
Now, to get an idea of wages in Italy, we can examine the average wage. According to ILO data, the average monthly wage in Italy was 3,116.2 euros in 2022. Almost half that of Luxembourg.
Taxation of the income
When comparing taxes between Luxembourg and Italy, it’s essential to note that the tax systems in both countries are complex, with various types of taxes impacting residents and businesses differently. To provide a starting point for understanding the tax landscape, we can compare the top income tax rates in each country.
- In Luxembourg, the highest income tax rate is 45.80%. This rate applies to individuals with high-income levels and is part of a progressive tax system designed to increase with income brackets. Luxembourg’s tax system is generally known for its favourable conditions for individuals and businesses, contributing to its reputation as a financial hub.
- In Italy, the top income tax rate is slightly higher at 47.3%. Italy also has a progressive tax system, where higher income levels are taxed at higher rates. This rate reflects the country’s approach to income taxation, which aims to address income disparities but results in a higher burden on high earners compared to Luxembourg.
It’s important to note that these figures represent just a snapshot of the tax situation. Both countries have a range of taxes beyond income tax, including corporate taxes, value-added tax (VAT), and social security contributions, all of which can influence the overall tax burden. Additionally, tax regulations and deductions can vary significantly based on individual circumstances and specific financial situations.
Therefore, while comparing the top income tax rates provides an initial perspective, it is advisable to seek professional tax advice to fully understand how the tax systems in Luxembourg and Italy may affect you personally or for your business.
Relocation procedures and options
Now that there is more clarity on the question of which is better Luxembourg or Italy, it is time to move on to more practical things like relocation procedures. Relocating to a new country involves a myriad of questions and considerations. When contemplating a move to Luxembourg or Italy, one might wonder about the visa requirements, residency permits, and the overall process of settling into a new environment.
Popular grounds for relocation
Many individuals relocate for educational opportunities. Luxembourg and Italy are home to prestigious universities and research institutions, attracting students from around the globe. To study in these countries, one typically needs to secure a student visa.
Requirements usually include:
- Proof of enrolment at a recognised institution,
- Evidence of sufficient financial resources to cover tuition and living expenses,
- Valid health insurance,
- A valid passport.
Relocating for employment is another prevalent reason. Both Luxembourg and Italy have robust job markets in various sectors.
Requirements usually include:
- A valid job offer from a company in the destination country,
- A work visa or permit, which the employer often assists in obtaining,
- Proof of qualifications and sometimes proficiency in the local language(s),
- Valid health insurance and a clean criminal record.
Work documents required
If you are interested in working in Luxembourg, we recommend our detailed article on how to obtain a work visa for Luxembourg.
A special option in this area is the European Blue Card, which is available in most European countries, including Luxembourg and Italy. This card is intended for highly qualified workers, it offers certain advantages but also comes with special conditions for obtaining it.
Role and qualification
Great salary
ADEM approval
Moving to join family members is a common motivation for relocation. Family reunification visas allow spouses, children, and sometimes extended family members to live together.
Requirements typically include:
- Proof of relationship (marriage certificate, birth certificates),
- Evidence that the family member residing in the destination country can financially support the applicant,
- Accommodation that meets local standards,
- Health insurance coverage.
How to choose where to relocate between Luxembourg and Italy?
Deciding where to relocate can be a challenging decision, especially when comparing two diverse destinations like Luxembourg and Italy. Each country offers unique advantages and challenges that can influence your choice.
Frequently Asked Questions (FAQ)
Which country has a higher cost of living, Luxembourg or Italy?
How do Luxembourg and Italy differ in terms of cultural experiences?
How do the average salaries compare between Luxembourg and Italy?
Source: es.wikipedia.org, en.wikipedia.org, ec.europa.eu, ec.europa.eu, ec.europa.eu, numbeo.com, numbeo.com, rshiny.ilo.org, arlettipartners.com, schengen.news, gestionistaitalia.com, immigration-portal.ec.europa.eu, idealista.it
We took photos from these sources: Dan Novac on Unsplash
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