Luxembourg vs. Belgium: Salaries, costs of living and advantages of two countries
Belgium and Luxembourg are two neighbours in the heart of Europe, sharing a rich history, a common language and deep economic ties, but also striking contrasts. While Belgium is famous for its beer, chocolate and diverse culture, Luxembourg is a financial powerhouse with an exceptional quality of life. This article explores everything from the population and culture to employment opportunities, taxes, salaries and more.
If you have come here in search of an idea of where it is better to live, you should bear in mind that this article presents an objective view of the subject by analysing factual elements and statistical data. However, the question of which country is better to live in involves many subjective variables that depend on your own assessment, personal preferences and circumstances.
Luxembourg vs. Belgium: a general overview
What do one of the world's most influential financial centres and the seat of the European Union's most important institutions have in common? Luxembourg and Belgium are two European neighbours that share many characteristics, such as the French language, which acts as a cultural bridge between their identities, yet they stand out in very different ways. Belgium stands out for its art, gastronomy and global political importance, while Luxembourg stands out for its economic stability and quality of life. Comparing their populations, cultures and lifestyles reveals unique stories worth discovering.
Population and territory
Looking at the surface of the two countries, one of the first things they have in common is that they are both among the smallest countries in Europe, although Luxembourg is much smaller than Belgium. On the one hand, Luxembourg has only 2595 km, and it is possible to drive from north to south in only one and a half hours. On the other hand, Belgium is the country with 30,666 km, enough to accommodate Luxembourg almost 12 times!
In terms of population, Luxembourg is, as expected, much less populated: on 1 January 2024, it had 672,050 inhabitants, while Belgium had 11,817,096 inhabitants on the same date, about 17 times more than Luxembourg.
Another interesting point is the evolution of the population of the two countries. Belgium increased its population much more in absolute terms, with an increase of 636,256 people between 2014 and 2024, while Luxembourg only increased by 122,370 people. In relative terms, however, Luxembourg's population will increase much more, by 22.26%, compared with a modest 5.69% for Belgium.
With regard to the origin of the population, it is interesting to note that almost half of Luxembourg's population is of foreign origin, 51.03% to be precise on 1 January 2024. The majority of this foreign population is of Portuguese and French nationality. Belgium, on the other hand, had 19.67% of its population of foreign origin on the same date, a much smaller but still significant percentage.
General vibe
When comparing the general environment of Luxembourg and Belgium, many cultural and lifestyle differences stand out; however, given their proximity, they also have many aspects in common.
Although Luxembourg and Belgium have unique cultures, both countries share multiple aspects in common that are worth noting:
Quality and cost of life in Luxembourg and Belgium
The next two aspects we will analyze are the quality of life and the cost of living in both countries, two extremely important elements that often go hand in hand.
Quality of Life
Capturing trends in the well-being of European citizens is quite complicated due to the subjective nature of this aspect, however, there are European Union statistics that shed some light on this aspect. One of them is the global life satisfaction index, for which Europeans rated their life satisfaction on a scale from 0 (very dissatisfied) to 10 (very satisfied).
According to this index, the European average in 2023 was 7.3 points, with 15 countries scoring at or above the EU average, Finland leading the list with 7.8 points, followed by Switzerland and Belgium in third place with 7.7 points. Luxembourg has a slightly lower score, exactly the same as the EU average of 7.3 points.
Cost of Living
When turning to the cost of living in Luxembourg vs Belgium, we will rely on Numbeo data as they have the world's largest database on the cost of living, allowing us to have a clearer picture.
Numbeo offers several indices, all based on a comparison with the cost of living in New York City. Their most comprehensive index, the Cost of Living Plus Rent Index, calculates the prices of consumer goods, including rent, in comparison to New York City.
This index compares data from 146 of the most important cities in Europe and shows that Luxembourg is one of the most expensive countries in Europe, ranking 15th, ahead of all the Belgian cities in the list. Brussels is the most expensive Belgian city, followed by Antwerp and Ghent.
Employment and work opportunities in Luxembourg and Belgium
One of the most interesting factors in the comparison is employment and job opportunities, as this is a key factor for many people when choosing a destination. Both countries offer plenty of opportunities in this area, but some are more developed than others.
Industry Sectors
Both countries have robust economies, although they are engaged in different economic sectors.
The Luxembourg economy is one of the most dynamic in Europe and one of the most open in the world. It regularly ranks in the top 10 in global rankings based on territorial competence, digitalization and innovation. In Luxembourg, the most developed industrial areas include the steel industry and financial services.
The Luxembourg steel industry has long been the country's main source of employment and wealth, accounting for a large percentage of the national GDP. In fact, in the mid-20th century, the country became the world's largest steel producer.
The boom in this sector contributed greatly to the country's economic development for a long period. However, after the first steel crisis of the 1970s, the government made considerable efforts to diversify the economy by developing a favourable fiscal environment, which soon made Luxembourg one of the world's leading financial centres.
Today, the financial sector is one of the most important in the country, accounting for 25% of Luxembourg's GDP. In addition, over the last fifteen years, Luxembourg has become the leading European centre for investment funds.
Many of the world's largest multinational companies, such as Pepsi, Ikea, Accenture, Burberry, Procter & Gamble, Heinz, JP Morgan, FedEx, Amazon or Deutsche Bank, among others, have set up in Luxembourg.
Belgium has a diversified and highly developed economy, with a GDP of approximately 689 billion dollars in 2025, which places it among the strongest economies in Western Europe. Its economic structure is divided into three main sectors: primary, secondary and tertiary.
The primary sector, which includes agriculture, fisheries and forestry, accounts for less than 1% of GDP. The main agricultural products are sugar beet, fruit, and meat and it employs less than 1% of the working population.
The secondary sector contributes around a fifth of GDP and is characterised by its manufacturing industry. Belgium excels in the production of chemicals, pharmaceuticals, base metals and automobiles. Antwerp is an important centre for petrochemicals, while Wallonia is undergoing restructuring following the closure of mines and steel plants. This sector is essential for Belgian exports, which will account for 69% in 2023.
Finally, the tertiary sector dominates the economy, accounting for around three quarters of GDP. It includes financial services, trade, transport and tourism. Brussels is home to European institutions and specialised service companies. Belgium also relies on technological innovation to boost its competitiveness.
Attracting global talent
Both countries continue to attract professionals from all over the world, although Belgium has a higher rate of immigration for employment purposes, as you would expect from a larger country. In 2023, Luxembourg will receive 3,151 people for work purposes, while Belgium will receive 8,631, almost three times as many.
Most In-Demand Professions
Both Luxembourg and Belgium need professionals in several sectors of the economy, such as technology, finance or health, but each country has a higher demand in certain sectors. While Luxembourg, as a financial centre, requires more profiles in the financial, legal and IT sectors, Belgium has a slightly more diversified economy and is looking for professionals in several sectors, of which finance, IT, engineering and construction, logistics and health stand out. The table below illustrates some of the most sought-after occupations in both countries across multiple sectors of the economy.
| Sector | Luxembourg | Belgium |
| Finance | Fund officers, KYC and AML analysts, fund accountants and risk managers. | Data analyst, wealth managerFinancial auditor. |
| IT | IT developer, data /BI Analyst, IT consultant. | Cybersecurity expert, cloud architect, DevOps developer. |
| Construction | Industrial and R&D engineers and managers, manual assembly workers and factory machine operators. | Specialized engineers. |
| Health | Nurses, care assistants, senior and social workers, psychologists and medical secretaries. | Nurses, caregivers, midwives, doctors and medical technicians. |
| Hospitality | Kitchen staff, restaurant service staff, dishwashers, and bartenders. | Food & beverage managers, housekeeping supervisors, waitstaff. |
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Salaries in Luxembourg and Belgium
Let's compare salaries in Luxembourg vs. Belgium. In Luxembourg, there are two minimum wages, one for unskilled workers and one for skilled workers. The minimum wage for unskilled workers amounts to 2,637.79 euros, while for skilled workers it amounts to 3,165.35 euros. Both wages position place the country as the country with the highest minimum wages in Europe. The average wage is also extremely somewhat, according to the International Labour Organisation (ILO) in 2022 the average wage in Luxembourg stood at 7044 euros per month.
Belgium has a rather more modest minimum wage of 2,070 euros per month. As for the average wage, it stood at 5418 euros per month in 2022, about 77% of the average Luxembourg wage.
Taxes
Comparing the taxation of Luxembourg and Belgium in a few lines is a complicated matter, as there are many types of tax and many variables at play. A complete comparative analysis would require several large articles, but it is possible to have a first look at the subject and a starting point to shed some light in this area is the maximum income tax rates. If we compare the two countries in this respect, we can see that the highest rate in Belgium is 53.50% and is positioned as the fifth highest in Europe, while that of Luxembourg is more moderate and is positioned at 45.80%.
If you would like to get an idea of how much tax you would have to pay in Luxembourg, we recommend you have a look at our tax calculator.
Relocation procedures and options
Relocating to a new country involves a myriad of questions and considerations, visa requirements, residency permits and the overall settlement process. Below, we explore the most common relocation options and the main requirements associated with each.
Common Relocation Reasons
- Study
One of the most frequent reasons for immigration in both countries is studies. However, it is not possible to offer a single answer to students faced with the dilemma: Luxembourg vs. Belgium, which is better for international students? Both countries have prestigious universities and research institutions, the answer to this question depends on multiple subjective factors such as the field of study and personal preferences and therefore a personal analysis of the issue is required.
However, regardless of which country you choose, unless you are a European citizen, you will need to obtain a student visa to study in these countries, the requirements for which are usually as follows:
- Proof of enrolment at a recognized institution.
- Evidence of sufficient financial resources to cover tuition and living expenses.
- Valid health insurance.
- A valid passport and possibly a background check.
- Work
Another frequent reason is to relocate for work purposes, as both Luxembourg and Belgium have strong job markets in various sectors. To relocate for work purposes, the following requirements are usually necessary:
- 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.
- Family Reunification
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.
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How to choose where to relocate between Luxembourg and Belgium?
Moving to a new country is an important decision that involves taking into account many factors, such as quality of life, cost of living, employment opportunities and personal preferences. Luxembourg and Belgium each offer different characteristics and the choice between the two depends on individual priorities and circumstances. Here we highlight some positives and negatives of each country to help you make an informed decision.
Frequently Asked Questions (FAQ)
Which languages are spoken in Luxembourg and Belgium?
Which country is more suitable for expats or international employees?
Is it easier to find accommodation in Belgium or Luxembourg?
Source: ec.europa.eu, www.numbeo.com, www.imf.org, www.euskadi.eus, econostrum.info, www.belgique-emploi.com, www.roberthalf.com
We took photos from these sources: Getty images on Unsplash
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