Luxembourg boasts a strong economy and a stable political system. The Grand Duchy is a popular destination for foreigners. However, an important factor when choosing a country to move to is the cost of living. Find out about the total cost of living in Luxembourg per month, the cost of housing, the cost of utilities, medicine and food in 2025

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Luxembourg, a small but prosperous country nestled between Belgium, France, and Germany, is known for its high standard of living, strong economy, and stunning landscapes. The country’s wealth and appeal as a financial hub make it a desirable destination for expatriates and international professionals from Kenya, Cuba, Venezuela, Mauritius, and many other countries around the world. However, with a strong economy comes a high cost of living, which can sometimes catch newcomers off guard. In this article, we’ll look at the main components of the cost of living in Luxembourg, including housing, transportation, food, and other daily expenses.

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Is Luxembourg expensive to live in 2025?

Luxembourg is one of the most expensive countries in Europe. The capital of the country, the city of Luxembourg, ranks 52 out of 227 cities in the cost of living survey by the Mercer company.

Average cost of living in Luxembourg per month in 2025:

- For a family of four - from 6,000 to 8,000 euros (including rent, utilities, medical care and childcare).

- Per person – 3210 euros (including rent).

Life in Luxembourg is more expensive:

- by 23% than in Spain,

- by 40% compared to the Czech Republic;

- by 10% than in New Zealand.

However, it will be cheaper here:

- by 30% than in Great Britain,

- by 40% than in Switzerland

- by 45% compared to New York.

Prices for renting and buying housing in Luxembourg

In general, prices for renting and buying housing in Luxembourg are 87% higher than the EU average.

The cost of renting real estate:

- A one-bedroom apartment in central Luxembourg costs between 1,500 and 2,200 euros per month. Outside the city center, rents can be slightly lower, between 1,200 and 1,600 euros.

- For a three-bedroom apartment, expect to pay between 2,500 and 3,800 euros in the city center and between 2,000 and 2,800 euros outside the city.

Overall, the cost of renting a home is equivalent to 38% of income for a couple and 55% for a single person. Also, when renting, you will need to make a deposit in the amount of the rent for 1-3 months, depending on the landlord.

Prices for buying a house in Luxembourg:

- The average price per square meter ranges from 7,000 to 15,000 euros.

- A one-room apartment in the central part of the capital will cost up to 500,000 euros;

- Three-room apartment - about 1,000,000 euros.

However, the further from the center, the lower the price.

To purchase real estate, you can take out a mortgage, but the expat must be ready to make a deposit, usually 20-25% of the cost of the home.

Although housing in Luxembourg is expensive compared to other European countries, salaries tend to match the high cost of living, which helps offset these housing costs for many residents.

The cost of utilities in Luxembourg

- Utilities (electricity, heating, water and garbage collection) per month for an apartment with an area of 85 square meters - 250 euros per month.

- Internet, television and phone package - from 40 to 80 euros per month.

The cost of medical services in Luxembourg

The state health care system provides all residents of the country with free medical care.

Employees and self-employed persons pay 2.8% of their earnings to the health care fund every month.

Family members are also insured through workers who pay social security contributions, meaning children receive insurance from their parents.

In general, the prices for medical services in Luxembourg are as follows:

- Cold medicine for 6 days - 7 euros,

- 1 package of antibiotics (12 doses) – 15 euros,

- Short visit to a private doctor (15 minutes) – 49 euros.

Prices for education in Luxembourg

- Public schools are free.

- Preschool institutions - 3,000 euros per year.

- International school for children under the age of 16 - 20,000 euros. Every year, the cost of education increases, depending on the age of the student.

- Higher education in Luxembourg is much cheaper - 200 or 400 euros per semester for most bachelor's programs at public universities.

Prices are higher in private educational institutions.

The cost of food in Luxembourg

Food prices in Luxembourg are about 25% higher than in most EU countries.

Grocery prices in Luxembourg vary widely, but a basic shopping list for one person will typically cost between €50 and €75 per week, depending on the type of products you buy. Popular grocery chains include Cactus, Auchan and Lidl, all of which offer a wide range of products, including international ones.

Approximate prices for products in Luxembourg:

- a bottle of water 0.5 l - 4 euros,

- tomatoes (1 kg) – 4 euros,

- apples (1 kg) – 3 euros,

- milk (1 liter) – 1 euro,

- minced beef (1 kg) – 18 euros,

- eggs (12 pcs.) – 3.5 euros,

- shampoo - 4 euros,

- shower gel - 2.5 euros,

- a bottle of wine – 10 euros,

- a pack of cigarettes – 5.7 euros.

Restaurants and entertainment in Luxembourg

- Lunch in a middle-class restaurant - 75 euros per person.

- Lunch at a fast food chain restaurant – 10–25 euros per person.

- Half a liter of local or imported beer in a pub - 5 euros.

- Cappuccino – 3.7 euros.

- Theater ticket – 36 euros.

- Movie ticket – 12 euros.

- Gym membership – 20–80 euros.

- Tennis court rental per hour – 19 euros.

Prices for transport in Luxembourg

Luxembourg has good public transport connections, and in 2020 the government introduced free public transport for all residents and visitors. This includes buses, trams and trains, making commuting to and from work more affordable.

- Travel in first class - 3 euros for two hours or 6 euros for a day ticket (valid until 04:00 the next day).

- The starting price for a taxi is around 4 euros, with an average cost per kilometer of 3 euros. A taxi ride in the city center will cost around 5 to 15 euros, depending on the distance. For longer trips, such as to the airport or nearby areas, the fares can increase significantly.

- The cost of gasoline is 1.5 euros per liter. Parking fees, especially in Luxembourg City, can be quite high. If you decide to rent a car, expect to pay between 30 and 70 euros per day for a mid-range car.

Taxes in Luxembourg

Luxembourg has a relatively favorable tax system, especially for high-income earners. Income tax rates range from 0% to 42% depending on your income level. For individuals living and working in Luxembourg, social security contributions are also mandatory, typically around 12% of gross income.

Therefore, the cost of living in Luxembourg is above average. However, moving here will be a new stage in your life and career, and the high cost of living in the country is compensated by a considerable salary.

Expats moving to Luxembourg should be prepared for housing costs, but they can also enjoy a comfortable lifestyle with access to quality services and a strong economy.

To safely move, travel or find work in a new country, you will need health insurance. Purchase an extended policy on the Visit World portal!

As a reminder! Luxembourg is a country of opportunities that attracts the best global talents with its thriving economy and career prospects. In 2025, Luxembourg will continue to attract foreign workers. We have already talked about working in Luxembourg in 2025 for foreigners and the most popular job vacancies.