Luxembourg vs. France: Salaries, costs of living and advantages of two countries

Luxembourg vs France: an overview of general points

Although Luxembourg and France share borders and centuries of European history, their general characteristics make them unique. While Luxembourg impresses with its cultural diversity and modernity, France surprises with its territorial extension and regional diversity. In this first section, we will take a closer look at general aspects such as surface area, population, culture, climate, languages and lifestyle to get an overall picture.

Population and territory

Source: Eurostat

In terms of surface area, the two countries are at opposite extremes. On the one hand, Luxembourg is one of the smallest countries in Europe with only 2595 km2 and the possibility to be driven from north to south in only one and a half hours. On the other hand, France is the largest country in Europe with 549,060 km2, enough to cover Luxembourg about 210 times!

In terms of population, as expected, Luxembourg is much less populated. As of January 1, 2024, it had 672,050 inhabitants, while France had 68,467,362 on the same date. France has about 100 times more inhabitants. 

In addition to this, it is interesting to see the evolution of the population of both nations. France increased its population much more in absolute terms with an increase of 2,301,382 people between 2014 and 202,4 while Luxembourg only increased by 122,370 people. However, in relative terms, Luxembourg increased its population much more with an increase of 22.26% versus a modest 3.48% for France. 

As for the composition of the population, it is interesting to note that almost half of Luxembourg's population is of foreign origin, exactly 51.03% as of January 1, 2024. The majority of this foreign population is of Portuguese and French nationality, the latter representing an impressive 7.33% of the country's total population. France, on the other hand, had 13.63% of its population of foreign origin on the same date, a much smaller but still quite considerable percentage.

General vibe

When comparing the general vibe of Luxembourg and France, many cultural and lifestyle differences stand out; however, given their proximity, they also have many aspects in common.

Culture

French culture is world-famous for its art, gastronomy, fashion, and literature. France has been the cradle of important cultural movements, such as impressionism, and its influence is undisputed in world history. Luxembourg, although smaller, has a rich cultural heritage that combines German, French and Belgian influences, making it a true mosaic of traditions. Both countries have great expression in the areas of music, art, and literatur,e but Luxembourg tends to be more reserved in its cultural expression due to its size.

Climate

The climate in France varies quite a bit depending on the region. Cold winters can be found in the Alps or the Alsace and Les Vosges areas, while other regions are much warmer, such as the Côte d'Azur. Luxembourg, being more compact, has a more uniform climate, with moderately cold winters and mild summers.

Languages

France has one official language, French, which is not only a symbol of national identity but also the basis of its rich literature and philosophy. In Luxembourg, on the other hand, there are three official languages: Luxembourgish, German and French.

Lifestyle

The French lifestyle is famous for its elegance and focus on the enjoyment of simple things. The French deeply value good wine, gastronomy, long conversations in cafés and a balance between work and leisure. Luxembourg, on the other hand, offers a more pragmatic lifestyle focused on comfort, security, and business. The quality of life in both countries is high, but in Luxembour,g multiculturalism and modernity permeate daily life, while in France, there are deep-rooted traditions.

Cultural heritage and festivals

France is a country deeply rooted in its history and traditions, with a cultural heritage that is reflected in its impressive monuments, such as the Eiffel Tower, the Loire Chateaux and the Louvre Museum. Its festivals, such as the prestigious Cannes Film Festival and the emblematic Bastille Day, are recognized worldwide for their magnitude and historical significance. Luxembourg, although more discreet, also has a rich and unique heritage, such as the centuries-old “Schueberfouer” fair and Luxembourg's National Day celebrations.

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Although Luxembourg and France share cultural similarities due to their location as neighbours in the heart of Europe, each country preserves a unique identity that is reflected in their lifestyles and traditions.

Multiculturality

France has multiple regions with diverse identities, while Luxembourg integrates German, Belgian, and French influences into its DNA.

Passion for gastronomy

From French cheeses and wines to Luxembourgish dishes such as Judd mat Gaardebounen, food is an art in both countries.

Outstanding quality of life

Both countries have a strong commitment to work-life balance and have efficient public services and green spaces.

Languages

French is an official language in both countries, which serves as an important linguistic and cultural link between the nations.

Quality and cost of life

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

Source: Eurostat

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, in 2023, the average in Europe stood at 7.3 points, 15 countries scored at or above the EU average with Finland topping the list with 7.8 points, followed by Switzerland, Belgium, and Austria. Luxembourg shared the same EU average score, and France was close behind with 7.1 points. 

Cost of Living

Source: Numbeo

When turning to the cost of living in Luxembourg vs France, 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 indexes, all based on a comparison with New York City costs. Its most comprehensive index, “Cost of Living Plus Rent Index”, calculates the prices of consumer goods, including rent, compared 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 and surpassing any of the French cities on the list. Paris is the most expensive French city followed by Lyon, Montpellier, and Toulouse.

Employment and work opportunities

When considering which country to live in, one of the most important factors in a comparison is that of employment and job opportunities. On this point, both countries offer ample opportunities, but some are more developed in some areas than others.

Industry Sectors

Both countries have robust economies, although they are engaged in different economic sectors.

Luxembourg

France

Attracting global talent

Source: Eurostat

Both countries continually attract professionals from all over the world, although France, as might be expected as a larger country, has a higher rate of immigration for employment purposes. In 2023, France welcomed 58,221 people for employment purposes, while Luxembourg welcomed 3,151.

Most In-Demand Professions

In the following table, we can see which are the most demanded professions in both countries; the data for Luxembourg come from ADEM (Agence pour le développement de l'emploi), while the data for France come from multiple sources.

Salaries

Let's now turn to a comparison of the salary in Luxembourg vs France. 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 the country as the country with the highest minimum wages in Europe.  The average wage is also extremely somewhat; according to the International Labour Organization (ILO) in 2022, the average wage in Luxembourg stood at 7044 euros per month. 

France has a rather more modest minimum wage of 1,802 euros per month. As for the average wage, it stood at 3958 euros per month in 2002, less than half the average wage in Luxembourg. 

Taxes

Source: Tax Foundation

Comparing in a few lines the taxation of Luxembourg vs France is a complicated matter as there are many types of taxes and many variables at play. A complete comparative analysis would take several large articles, however, 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. When comparing both countries in this aspect, we have that the highest step in France is at 55.40% and is positioned as one of the highest in Europe, Luxembourg's is a little more moderate and is located 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.

How to choose where to relocate between Luxembourg and France?

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 France 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.