Cost of living in Luxembourg: how to figure out the monthly budget?

Accommodation costs in Luxembourg

Renting an apartment or buying real estate is rather expensive in the Grand Duchy. But if you are planning to stay in the country for a long time, it is better to rent first. Later, you can think about buying the property.

Rental Costs

The average rent is about:

In order to save some money choose a commune outside of Luxembourg City, or even an accommodation outside the country — in bordering France, Germany or Belgium. Prices there are much lower, but check your documents requirements in case you want to be a resident of Luxembourg. Most of the time you will need to be registered here.

Luxembourg Real Estate costs

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

Utility Bills

Photo by enovos

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 disposal. Compared to the EU average figures (0.13 euros per kWh), electricity prices in Luxembourg are higher, almost 0.15 euros per kWh.

Telecom Services

There are several telecommunication companies in Luxembourg. Most of them offer a number of cell phone service packages, TV and Internet services.

• POST Luxembourg,
• Eltrona,
• Orange,
• Tango,
• Luxembourg online, etc.

Healthcare Costs

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

• However, employees in the country pay monthly fees of 2.8% of their gross earnings to the healthcare fund. Employers usually cover half of the fees on behalf of their employees. This is called the social medical insurance system.
• Self-employed people are also obliged to make payments according to the type of their occupation in order to receive healthcare.
• Due to the higher risk of necessary medical treatment, manual workers pay a higher rate of almost 10% while other professionals pay 5.2%.

These fees cover residents with health care insurance for giving birth, rehabilitation, hospital treatment, medical appointments and consultations, and even pharmaceuticals. However, you will need to pay for treatment yourself first, and later you will be reimbursed by the state if you have contributed your fees.

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

Costs of childcare in Luxembourg

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

Families with children can choose a nursery or creche, personal babysitter or an au pair (a helping person to be integrated into family life):

Education Costs in Luxembourg

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

Food and Drink Prices

The cost of food in Luxembourg is higher than in most other places.

Groceries

The prices, however, will mostly depend on where you buy food products. Luxembourgish Cactus, Alima and Co-Op may be slightly more expensive than foreign Belgian and French networks such as Auchan, Match and Delhaize. If you are looking for the lowest prices possible for food, visit Aldi and Lidl – they have several stores in Luxembourg.

Costs of eating out

Lunch in a middle-range restaurant will cost you about 75 euros per person on average. If you have a tighter budget, the standard lunch in Luxembourg can cost you 9 to 17 euros, but it will consist of sandwiches and snacks at the price of 5.50 to 10 euros.

Beer, wine and alcoholic 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.

Transportation Costs in Luxembourg

Luxembourg has an excellent public transport network. It consists of buses, trains, trams, and even funiculars. Moreover, public transport is free in the Grand Duchy.

Taxi fares in the Grand Duchy are a completely different story. The basic rate is about 6 euros, and the average price per kilometer is around 3 euros.

If you live in one of the villages outside of Luxembourg, you will probably have to go to work every day and shopping on occasion. Gasoline prices in Luxembourg are about 1.50 euros per liter of unleaded petrol and 1.39 euros per liter of diesel.

Leisure time in Luxembourg

Photo by Luxtoday

Inflation in Luxembourg

This indicator shows if the purchasing power of money will fall and how exactly: it basically means that you can buy less food for the same amount of money. The inflation rate is an important indicator for understanding the cost of living in Luxembourg. The National Statistical Agency Statec constantly forecasts the inflation rates in the country.

Cost of living in Luxembourg for a family

The amount depends on a variety of factors. Your actual cost may fluctuate depending on your personal circumstances — the size of your family size, if you have pets, and all of your healthy or unhealthy habits (smoking and drinking, or organic food and sports).

Comparison of living costs in Luxembourg City and other European capitals

Housing costs in Luxembourg are notoriously high. 

Rent

Average rents in Luxembourg City are significantly higher than in cities such as Berlin, Paris and Madrid. For example, a one-bedroom apartment in the center of Luxembourg can cost around 1,700 euros per month, while a similar apartment in Berlin costs around 1,000 euros per month.

Food

Food prices in Luxembourg are generally higher than in many other European cities. For example, a loaf of bread that costs 1 euro in Berlin might cost around 2 euros in Luxembourg.

Restaurants and cafés

Eating out in restaurants and cafés can also be relatively expensive in Luxembourg compared to other cities. The average price of a three-course meal for two people in a mid-range restaurant is around 80 euros.

Generally speaking, the cost of living in Luxembourg City can also be compared with other capitals: it is 3% more expensive to live here than in Berlin, 4% more expensive than in Brussels and 11% more expensive than in Rome.