Living in Luxembourg is more expensive than in Dubai

According to the 2026 Cost of Living Index from the Numbeo platform, Luxembourg with an index of 80.6 ranks 33rd in the world, overtaking cities such as Paris (78.6), Munich (76.1) and even Hong Kong (75.2).

The cost of living in Luxembourg is made up of many factors: high rents, expensive food and extensive social guarantees.

Interestingly, in this ranking, which focuses on average living costs (excluding rent), Dubai, often perceived as a symbol of luxury and overconsumption, ranked only 213th with an index of 61.8. This is almost 20 points lower than Luxembourg. Despite skyscrapers, private beaches and luxury boutiques, life in the emirate is cheaper, primarily due to subsidised fuel and energy prices, lower taxes, cheaper labour and a variety of consumer options, including more affordable food.

However, the differences lie not only in the numbers, but also in the approach. Luxembourg offers compact but quality European-style living, with sustainable infrastructure, clear regulation and one of the best healthcare systems in Europe. In contrast, Dubai often balances a high quality of life with an apparent social hierarchy - expats of different income levels live in parallel worlds.