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How Much Does It Cost to Live in Luxembourg? How Can You Know Your Spending?

Last update: 24 august, 2022

Spending forecasting can help to understand your monthly expenses. 

The Cost of Accommodation in Luxembourg

Renting or buying real estate is expensive. But if you are going to stay in the country for a long time, you should better rent it. Later, you can think about buying it.

Rental Cost 

The average rent is about: 

  • 876 euros a month for a studio apartment. 
  • 1400 euros a month for a two-bedroom apartment. 
  • 2500 euros a month for four-bedroom accommodation.

In addition to the monthly rent, you have to pay a deposit for a period of 1 to 3 months.

You can also live in a neighboring country and go to Luxembourg to save money.

Luxembourg Real Estate Prices

Luxembourg’s average price per square meter varies considerably, from 7000 to 15,000 euros.

In the most popular districts, you can pay up to 500,000 euros for a one-bedroom apartment and about 1,000,000 euros for a three-bedroom apartment. But the further away from Luxembourg, the lower the price per square meter.

IMPORTANT!

If you want to buy a mortgaged property, you need a deposit of 20-25%. 

Utility Payments 

The cost of basic utilities in an apartment of 85 square meters in Luxembourg is about 230 euros, including electricity, heating, air conditioning, water and garbage removal. Compared to the EU average figures (0.13 euros per kWh), electricity prices in Luxembourg are pretty high, almost 0.15 euros per kWh.

Telecommunication Services 

There are several telecommunication companies in Luxembourg. Most of them offer a number of mobile packets, TV and Internet services. 

IMPORTANT!

POST Luxembourg offers internet, TV and phone packets from 60 euro per month (download speed is 20 Mbps, 55 channels) to 74 euro per month (download speed is 1 Gbps, unlimited calls to subscribers from more than 40 countries, 120 channels and other options).

Health Cost 

The Luxembourg public health system provides all residents with free basic healthcare services.

However, employed persons pay monthly fees of 2.8% of their gross earnings. Employers also pay half of the fees on behalf of their employees.

Self-employed persons must also make payments according to the type of their work. 

Because of the high risk of medical treatment, manual workers pay a higher rate of almost 10% while other occupations pay 5.2%.

These fees cover residents with health care for births, rehabilitation, hospital treatment, medical appointments and consultations. However, you need to pay for treatment in advance, and later, you will be reimbursed if you have contributed sufficiently.

Although the public health system is sufficient for most expatriates, you can also get private health insurance.

Childcare Costs in Luxembourg

In most countries, childcare costs are high and, due to the high cost of living in Luxembourg, it is difficult to find affordable childcare solutions.

Families with children can choose a nursery, personal babysitter or an au pair:

  • Nurseries accept children from three months to four years of age, and parents must pay according to their income. Low-income families can obtain subsidies known as a check service (CSA) for help with childcare costs.
  • If you need a full-time babysitter in Luxembourg, you can hire an au pair. There are several criteria that you and your au pair must meet; you can find them on the Luxembourg public information portal. They are entitled to a fifth of the minimum wage as their allowance and must be provided with food and housing. 
IMPORTANT!

Keep in mind that the au pair’s work will increase your food bills. But this can still be cheaper than paying for a private kindergarten.

The Cost of Studying in Luxembourg

Even though the Grand Duchy ranks high in the OECD Better Life Index, it lags behind in education.

Public schools are free for emigrants registered in the Luxembourg social security system.

Immigrant children usually attend international schools in Luxembourg. But school fees are quite high: about 3000 euros for pre-school centers and up to 20,000 euros a year for 16-year-old students. The fee increases every year depending on the student’s age. 

Fees for Luxembourg universities are much lower – 200 or 400 euros per semester for most Bachelor’s Degree programs at public universities. The rate is higher in private schools.

Food and Drink Prices 

Groceries 

The cost of groceries in Luxembourg is higher than in most other places. Visit Numbeo to learn about the latest average prices for staple foods.

The prices, however, depend on where you buy products. Cactus, Alima and Co-Op owned by Luxembourg may be slightly more expensive than some foreign networks such as Auchan, Match and Delhaize. If you want the lowest prices for products, visit Aldi and Lidl – they have several stores in Luxembourg.

The Cost of Dinners in Restaurants and Public Venues 

You can enjoy high-quality food in inexpensive restaurants for 18 to 30 euros per person. 

Lunch in a middle-range restaurant would on average cost you about 75 euros per person. If you have a tight budget for eating, the standard lunch would cost you 9 to 17 euros, but you can buy sandwiches and snacks at 5.50 to 10 euros.

Beer, Wine and Alcohol Drinks 

A pint of local or imported beer in a pub or restaurant would cost about 5 euros. Meanwhile, you can find much cheaper beers in supermarkets: from 2 to 3.50 euros. A bottle of mid-range wine costs about 10 euros.

The Cost of Transportation in Luxembourg

Luxembourg has an excellent public transport network consisting of buses and trains. Moreover, public transport is free there

The only exception is first-class train travel. The ticket costs 3 euros for two hours or 6 euros for a day’s travel (until 4 a.m. the next day). You can also buy ten two-hour tickets for 24 euros.

Taxi fares in the Grand Duchy are a completely different story. The basic rate is about 3 euros, and the average kilometer cost is 3 euros.

If you live in one of the villages outside of Luxembourg, you will probably have to go to work and perhaps even shopping. Gasoline prices in Luxembourg come to about 1.50 euros per liter of unleaded petrol and 1.39 euros per liter of diesel.

Recreation in Luxembourg

Clothing 

Buying clothes in Luxembourg would cost you slightly more than in neighboring countries. For example, the price for a pair of mid-range jeans is an average of 95 euros, while a summer dress costs 35 euros. You may spend about 100 euros on a pair of training shoes and 140 euros on classic shoes.

Hobby 

If you are engaged in sports, you can spend 25 to 80 euros for a gym membership depending on what facilities you want to partake in and when. For example, renting a tennis court for an hour would cost about 25 euros.

For a movie ticket, you will pay 10 to 15 euros. This is similar to other European countries.

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