Luxtoday
Banking and finance

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

In this article we will look at how much money you need to live in the Grand Duchy, what are the average prices of rent, food, entertainment, childcare and healthcare in Luxembourg.

Last time updated
17.06.24

Luxembourg ranks among the top 10% of the most expensive cities in Europe, according to Numbeo's Cost of Living Plus Rent Index. Out of 260 major European cities included in the ranking, Switzerland holds the lead for having the most expensive cities on the continent, and Luxembourg is ranked 23rd. A forecast of living costs and spending can help you plan your budget when first moving to Luxembourg and understand your monthly expenses. 

Accommodation costs in Luxembourg

Renting an apartment or buying real estate is rather expensive in the Grand Duchy due to big demand and developing budget-friendly real estate market. Buying property is very viable investment option in the country, because market prices grow each year. But if you are just moving and planning to stay in the country for a long time, it is better to rent first to assess the living conditions and different communes and neighbourhoods, they are quite different. Later, you can think about buying the property in one of them.

Rental costs in the City

Luxembourg is an expensive city for renters. According to Immotop, in April 2024, the average price for rental properties reached a new high of 27.15 euros per square meter per month. This represents an 11% increase compared to April 2023.

The average rent prices for different types of accommodations are about:

1,000-1,500
euros per month for a studio in the City
2,000-3,000
euros per month for a 2-bedroom apartment
3,500-5,000
euros per month for a 4-bedroom private house
Additional costs

In addition to the monthly rent, you must prepare to pay a hefty deposit — the sum of rent for a period of 1 to 3 months, depending on the landlord. Sometimes, you will also need to pay the services of the agent.

In order to save some money choose a commune outside of Luxembourg City, or even an accommodation outside the country, if you do not need a registration in the country for residence — 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.

Real estate costs in Luxembourg

Luxembourg's property market shows a stark difference in prices between regions. In 2024, those looking to buy faced the highest costs in the Center region, where properties sold for an average of 10,879 euros per square meter. This lowers the price tag in the North region, where properties were the cheapest nationwide at 5,996 euros per square meter. Interestingly, the rental market mirrored this trend. The Center region again commanded the highest rents at 30.80 euros per month per square meter, while the North offered the most affordable options at just 18.45 euros per month per square meter.

The average purchase prices for different types of accommodations are about:

300-500
thousand euros for a studio apartment in Gare
500-900
thousand euros for a 2-bedroom apartment in City
1.7-5.4
million euros for a family house with 4 bedrooms

In the most popular districts, you can pay up to 800,000 euros for a one-bedroom apartment and about 1,300,000 euros for a three-bedroom apartment. But the further away from Luxembourg — the lower the price per square meter.

If you want to buy a property with mortgage payments, you need to be prepared to pay a deposit. It is usually 20-25% of the price of the property. Read more about buying the property in our dedicated articles on the website:

What documents do you need to buy real estate?
Mortgage in Luxembourg: requirements, rates and loans
Additional costs when buying a house in Luxembourg

Utility costs when living in Luxembourg

Photo by enovos
Photo by enovos

The cost of basic utilities in an apartment of 85 square meters in Luxembourg will come up to 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.

Bills
Living
2024
Find out how to pay utility bills in the country and ways to reduce them in our article
Read our article

Phone and internet services

Choosing a budget fitting option fully depends on how often you use internet, how much do you need, and if you travel a lot, etc. Generally speaking, there are several telecommunication companies in Luxembourg, offering packages for connection and telecom services. Most of them offer a number of cell phone service packages, TV and Internet.

7-23
euros a month will cost mobile and internet with Orange for instance
30-50
euros a month will cost home internet without any additional packages
20
euros a month will cost TV with Orange, but without any packages
Bundle deals

Many companies offer packages, that include both TV, Internet and mobile services, and even more. You need to find a package suitable for you.

Here are the most popular providers in Luxembourg:

When it comes to choosing and determining the costs, it is hard to name a price. It depends on the tariff, suiting your needs, data usage and more factors, such as family plans and a need for TV packages at home. Take into consideration a few details.

What do you use more?
Internet, calls, sms? If internet, how important is communication via messengers - WhatsApp, Telegram, Viber. This will help you make a more informed choice of tariff.
How far you plan to travel around?
If your work and life are mostly based in Luxembourg, it is worth paying attention to unlimited tariffs within the country. They usually have a good price and a large internet limit. But! Such offers may not work outside the country. Therefore, if you will constantly travel to Benelux or neighbouring countries, it is worth taking a tariff that exactly allows you to call and access the Internet outside the country.
Do you need roaming?
Officially, roaming charges in the EU were abolished in 2017. However, it's worth checking with your provider to see if there really is no roaming throughout the EU without any conditions.

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.

Health
Deductions
Social

Our comprehensive guide to healthcare in Luxembourg

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):

Kindergarten

Daycare accepts children from three months to four years of age, and parents must pay accordingly to their income. Low-income families can receive subsidies known as a check service (CSA) for help with child upbringing costs.

Nanny and help

If you need full-time help with kids 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 a room to live in.

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.

Education costs in Luxembourg

The Grand Duchy ranks high in the OECD Better Life Index, and education becomes one of the cornerstones that guarantees the progression of the quality of life for the residents of the country. State promotes lifelong learning and provides options for education at any age: starting with compulsory education for kinds since age of 3-4 years old, and promoting university education with affordable fees, even for international students.

Public schools are free for children in country. Those registered in the Luxembourg social security system must attend and can count on support system for parents: maison relais and creches are accessible and will be partially covered based on the employment situation of the parents.

School

Expat children may attend international schools in Luxembourg. But school fees are quite high: about 3,000 euros for preschool centers and up to 20,000 euros a year for older students. The fee increases every year depending on the student’s age. Nonetheless, state also provides options for education for free.

University

Fees for Luxembourg State University (University of Luxembourg) are much lower than in many countries– 200 or 400 euros per semester for most Bachelor’s Degree programs. The rate is higher in private educational facilities, but you can choose from a variety of options.

Food and meal prices in Luxembourg

Luxembourg has one of the most exciting culinary scenes in Europe: Michelin-starred restaurants, gourmet chains and international cuisine to suit all tastes. But you can also find budget options, farmers' markets and much more. 

Groceries

The prices for food will mostly depend on where you buy groceries, if you cook at home, what are your dietary preferences and more. Luxembourg chains, such as Cactus, Alima and Co-Op may be slightly more expensive than foreign supermarkets present in the country, like 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.

Average cost of groceries and day-to-day goods in Luxembourg in 2024
Product Approximate priceQuantity
Milk1.34 euros1 litre
Mineral water0.80 euros1,5 litre
Tomatoes3.95 euros1 kilo
Potato1.68 euros1 kilo
Rice2.19 euros1 kilo
Ground beef19 euros1 kilo
Eggs3.77 euros12 pcs
Chicken11.69 euros1 kilo
Apples2.56 euros1 kilo
Oranges2.47 euros1 kilo
Bread2.62 euros500 g
Oat milk3.69 euros1 litre
Cappuccino4.50 euros1 cup
Shampoo3.70 euros1 bottle
Soap2 euros1 bar
Beer7 euros1 pint
Cigarettes5.5 euros1 package

Visit Numbeo to learn about the latest average prices for basic groceries, the database updated by users.

Costs of restaurant meals

A dinner in a high-range restaurant will cost you about 75 euros per person on average. For a lunch in a local cafe you will more likely pay around 15-20 euros per person. 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. 

How to eat in restaurants for half the price?

You can enjoy high-quality prepared food in various inexpensive restaurants for 18 to 30 euros per person. But if you want to try fancy places and not leave a whole lot of money, read our article about the RestoDays.

Beer, wine and other drinks

A pint of local or imported beer in a pub or restaurant would cost about 5-7 euros. Meanwhile, you can find much cheaper beers in supermarkets: from 2 to 3.50 euros. A bottle of mid-range wine costs about 15 euros, and the price can go as high, as you want.

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.

The only exception will be 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 10 two-hour tickets for 24 euros.

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

There are many things you can do in Luxembourg, and not all of them have to be paid for. There are various events, master classes and workshops, fairs and exhibitions that offer the whole family a chance to have fun on a budget. Take a look at our dedicated events page where we post the latest happenings and recommend activities.

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 95 euros on average, while a summer dress costs around 35 euros. You will spend about 100 euros on a pair of training shoes and 140 euros on classic shoes. Of course, this varies greatly depending on the brand, shop, and style preferences.

Hobbies

If you are into sports, you can spend 25 to 80 euros on a gym membership depending on what facilities you want to go to 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 type of entertainment cost is similar to other European countries.

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. 

According to STATEC, the statistical office of Luxembourg, inflation is forecasted to be 2.2% in 2024 and 3.3% in 2025. The rise in energy prices is expected to be the main driver of inflation in 2025. If the government dismantles the energy price shield, inflation could reach 3.4% in 2024 and 6.6% in 2025.

The annual inflation rate in March of 2024 was 3.1%, which is 0.1% lower than in February. Decreases in one sector usually are followed by the increases in other sectors.

Cost of living in Luxembourg for a family

The final cost can vary significantly depending on several key factors. These include household size, pet ownership, and individual lifestyle choices. For example, larger families will naturally incur higher expenses. Similarly, pet owners will have additional costs for food, veterinary care, and other pet-related needs. Finally, lifestyle choices significantly impact living expenses. Those who prioritise health and well-being may opt for organic groceries and gym memberships, leading to a higher cost of living. Conversely, habits like smoking or excessive alcohol consumption can also lead to increased expenses, albeit in different areas.

Average budget

The average cost of living in Luxembourg for a family of four can be between 6,000 and 8,000 euros per month, including rent, utilities, healthcare and childcare costs.

Comparison of living costs in Luxembourg City and other European capitals

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.

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.

While Luxembourg boasts a relatively high cost of living, it's important to note that many other capitals, for instance "nearby" Paris, remain a more expensive city. Estimates suggest a cost of living differential of approximately 5% in favor of Luxembourg. This means that you could expect to maintain a similar standard of living in Luxembourg for slightly less than the cost of living in Paris.

faq

Frequently Asked Questions (FAQ)

What is the cost of living in Luxembourg?

What are the average salaries in Luxembourg?

How high is inflation in Luxembourg in 2024?

Send feedback

We took photos from these sources: enovos, Unsplash

Authors: Daria
Was this article helpful?
Very helpful!
Informative!
I didn’t get it.
This is outdated.