Luxembourg vs. UK: two countries with high salaries and living standards
Today's contest: Luxembourg vs. the UK. Which country is better?Where are there more jobs? If you're thinking of living in either of these countries, you probably have questions. That's why we're here. This article compares Luxembourg and the UK to answer these questions.
Unless you've been living under a rock, you're surely aware that the United Kingdom left the European Union in 2020. Since then, the relationship between the EU and the UK has been primarily governed by four agreements: the Withdrawal Agreement, the Trade and Cooperation Agreement, the Information Security Agreement, and the Agreement for Cooperation on the Safe and Peaceful Uses of Nuclear Energy.
Luxembourg vs UK: briefly about the main things
We begin our analysis by comparing Luxembourg and the UK on several essential points: their land area, population, culture, climate, language, and lifestyle. This should give us a foundational understanding of these two countries' key differences and similarities, setting the stage for a more detailed comparison in the subsequent sections.
Population and territory
When comparing the size and population of the United Kingdom and Luxembourg, the differences are striking. Luxembourg is one of the smallest countries in Europe, while the United Kingdom spans on islands, and Luxembourg could fit into the UK approximately 94 times. Luxembourg is bordered by 3 countries: Germany on the east side, Belgium on the west and north, France on the south.
The population of Luxembourg is close to 700,000 people and in terms of population, the disparity is even more pronounced. The United Kingdom has about 67,736,802 people. This makes the UK roughly 102 times more populous than Luxembourg. Despite this, the population density of both countries is relatively similar because the UK's land area is also significantly larger.
Examining population growth over the past decade reveals interesting trends. Since 2012, Luxembourg's population has increased by 135,956 people, a 25.90% rise. The UK's population grew by 4,268,714 in the same period. Although this is a larger absolute increase, it represents only a 6.72% rise, indicating that Luxembourg's population growth rate is significantly higher.
Expat population
In terms of demographics, as of in 2021, Luxembourg had a notably high percentage of foreign residents, with 48.71% of its population being non-native, primarily from Portugal and France. Meanwhile, the United Kingdom, known for its diverse and cosmopolitan society, had 14.23% of its population born abroad, which is a pretty substantial figure but still much lower than Luxembourg's.
General vibe compared
When comparing the cultural and lifestyle differences between Luxembourg and the United Kingdom, there are both notable similarities and distinct differences.
Language is another area where these two countries show both similarities and differences. In Luxembourg, the official languages are Luxembourgish, French, and German. This trilingualism reflects the country's diverse cultural influences and is a key part of its national identity.
In contrast, the United Kingdom's primary language is English, spoken by the vast majority of its population. English serves as the global lingua franca and is integral to the country's cultural and economic influence worldwide. Regional accents and dialects add colour to the language landscape, reflecting the UK's diverse cultural heritage and local identities.
The climate in Luxembourg and the United Kingdom are quite similar, with both countries experiencing temperate conditions. Luxembourg has a moderate climate with mild winters and cool summers. Rainfall is evenly distributed throughout the year, making the environment lush and green.
The United Kingdom's maritime climate is characterised by mild temperatures and frequent rainfall throughout the year. The Gulf Stream moderates temperatures, resulting in cooler summers and milder winters compared to other countries at similar latitudes.
So alike
Luxembourg is often compared to the UK in terms of its climate. It's rainy, with moderate summers, and often covered with mists in the morning, too.
The lifestyle in Luxembourg is cosmopolitan, reflecting its status as a major financial hub and the presence of numerous international institutions. The country offers a high standard of living, excellent healthcare, and education systems. Luxembourg City, in particular, has a dynamic urban vibe with numerous dining, shopping, and entertainment options.
United Kingdom's lifestyle is shaped by its dynamic urban centres and picturesque rural landscapes. London, a global financial hub, contrasts with quaint villages and seaside towns offering diverse lifestyles.
Luxembourg and the UK both have a rich cultural heritage, shaped by their European neighbours. Luxembourg is in a great spot, right on the border with Belgium, France, and Germany. It has a really diverse cultural scene. The country has lots of cultural events and festivals, which reflect its multicultural population. The capital, Luxembourg City, is known for its lively arts scene, including theaters, museums, and music festivals.
The UK has a rich cultural history. It has iconic landmarks like Buckingham Palace and the Tower of London. It is also known for its literary figures like Shakespeare and Dickens. The UK is a global hub of cultural influence. Its arts scene includes renowned institutions like the Tate Modern and the Royal Opera House. It also has festivals like the Edinburgh Festival Fringe.
Luxembourg is a great place to live. You can find a good job with good pay and enjoy a relaxed city life. London is more fast-paced and offers more cultural events, a vibrant nightlife, and lots of tourists.
Quality and cost of life
Our next point of analysis focuses on the comparative aspects of quality of life and cost of living in Luxembourg vs the UK, two crucial factors that often go hand in hand.
Assessing the well-being trends of European citizens is complex due to its subjective nature. However, European Union statistics provide some insights. Although the UK no longer participates in EU surveys post-2020, data up to 2018 can still offer a preliminary overview.
One significant metric is the Global Satisfaction with Life Index, where Europeans rate their life satisfaction on a scale from 0 (very dissatisfied) to 10 (very satisfied). Luxembourg scores 7.5, slightly above the European average of 7.3, while the UK rates at 7.6, indicating comparable levels of satisfaction.
| Index | Luxembourg | United Kingdom |
| Purchasing Power | 190.68 | 117.33 |
| Safety | 65.78 | 52.25 |
| Healthcare | 74.58 | 73.2 |
| Climate | 82.62 | 86 |
| Cost of Living | 63.36 | 63.38 |
| Property Price to Income Ratio | 8.62 | 9.06 |
| Traffic Commute Time | 28.15 | 34.69 |
| Pollution | 23.27 | 40.45 |
| Quality of Life | 221.99 | 171.29 |
Numbeo Quality of Life Index provides a different perspective, aggregating 8 sub-indices. Luxembourg scores 221.99, reflecting favourable living conditions, whereas the UK lags behind at 171.29 points.
This discrepancy between the results of the first and second studies shows how subjective this aspect is and how difficult it is to estimate. A better approach to this point would be to analyse the different characteristics of each country and see how they fit with your tastes and preferences.
Cost of living
Let's now look at the cost of living in Luxembourg compared to the UK. Both countries are known for their relatively high costs of living, but using reference indexes can provide clarity. Numbeo offers a comprehensive database and indexes for global cost of living comparisons, including the "Cost of Living Plus Rent Index," which compares consumer prices, including rent, to those in New York City.
London ranks among the world's most expensive cities, surpassed only by major Swiss cities, significantly outstripping Luxembourg. However, Luxembourg's cost of living is comparable to other UK cities like Edinburgh or Bristol, and slightly higher than places such as Belfast, Newcastle upon Tyne, or Sheffield.
In addition to the indices and statistics, it is interesting to mention concrete aspects such as the fact that transportation in Luxembourg is free, something that favours the quality of life and lowers the cost of living.
Employment and job opportunities
We have arrived at a crucial point: employment and work opportunities. Both countries offer ample opportunities, but each excels in different areas.
BYOB (Bring Your Own Business)
Both Luxembourg and the United Kingdom are ideal countries to take your business there or to start one, if you want more information on this subject we recommend a couple of sites with information on it, one for Luxembourg and one for the United Kingdom.
Top industries
Luxembourg's economy is one of the most dynamic in Europe and among the most open in the world. It regularly ranks in the top 10 globally for competitiveness, digitalisation and innovation. The most developed industrial areas in Luxembourg include the steel industry and financial services.
Today, the financial sector is one of the most important in the country, representing 25% of Luxembourg's GDP. As of the end of April 2024, there were a total of 117 banks in the Grand Duchy, with private banking playing a significant role. Over the past fifteen years, Luxembourg has become the main European center for investment funds. Luxembourg serves as an operational hub for many international financial institutions.
How to get a job in Luxembourg: application, interview, contract
The UK is known for its diverse and robust industrial sectors. Key industries include machinery, transportation equipment (vehicles, railways, aerospace), and chemicals, while textiles and shipbuilding have faced decline. The service sector dominates the UK's GDP, notably financial services centred around the London Stock Exchange, the world's second-largest financial market after New York City. Edinburgh also plays a vital role, hosting major financial and industrial firms.
The country also excels in technology and innovation, with vibrant clusters in cities like London, Manchester, and Edinburgh. Startups in AI, biotechnology, and cybersecurity flourish, supported by renowned universities and entrepreneurial policies. The creative industries are a significant force, encompassing entertainment (film, television, music), design, fashion, and digital media. London stands out as a global hub for these activities, attracting creative talent worldwide.
In contrast
Agriculture in the UK contributes only 1% to GDP and faces challenges. Highly mechanised, it focuses on potatoes, sugar beets, wheat, and barley. Livestock farming, particularly sheep and cattle, makes the UK a major producer of dairy products. Fisheries, however, undergo significant restructuring, reflecting EU-wide declines in traditional fishing grounds.
Professions in-demand in Luxembourg vs. UK
The following table shows the most in-demand professions in both countries, with data sourced from Luxembourg's ADEM (Agence pour le Développement de l’Emploi), while data for the UK are sourced from Grabbojs, a prominent job advertisement portal.
| 🇱🇺 Luxembourg | 🇬🇧 United Kingdom |
| Analysis of loans and banking risks | Project Manager |
| Bank customer management | Java Developer |
| Office and middle management in the financial | Cyber Security Specialist |
| Paving and restoration of pavements | Graphic Designer |
| Management and engineering industrial researchers | Business Analyst |
| Production management and engineering | Product Manager |
| Installation and maintenance of industrial equipment | Pilot |
| Caregiver Assistant / Nurse | University Professor |
| Psychologist | Human Resources Director |
Attraction of international talent
Both countries continuously attract professionals from around the world, though as expected due to its larger size, the UK sees higher immigration for employment reasons.
The graph above illustrates labour immigration trends in both countries. But before analysing the data it's crucial to note that this graph combines data from two sources. The first source is EU statistics, which include data up to 2018 for the UK. For data from 2019 onwards for the United Kingdom, data from the Office for National Statistics is used.
According to these combined statistics, in 2022, Luxembourg welcomed 3,204 individuals for labour-related reasons, whereas the UK hosted a significantly higher number at 152,000. The UK's substantial and increasing labour immigration highlights its attractiveness as a destination for international talent seeking employment opportunities.
Minimum wages and salaries
In Luxembourg, there are two minimum wages: one for unskilled workers and another for skilled workers. The minimum wage for an unskilled worker aged 18 or older is 2,570.93 euros, while for a skilled worker, it is 3,085.11 euros. Additionally, it is interesting to note the average salary. According to the International Labour Organization (ILO), in 2022, the average salary in Luxembourg was 7,417.7 dollars per month, amounting to about 89,012 dollars per year.
In the United Kingdom, the minimum wage was set at 11.44 pounds as of April 2024. Considering a maximum 48-hour workweek, this amounts to 2,379.52 pounds per month, which translates to approximately 2,825 euros at the exchange rate as of early July 2024. The UK minimum wage is notably lower compared to Luxembourg, especially considering the 48-hour workweek in the UK versus 40 hours in Luxembourg.
Taxation of the income
Comparing tax systems across countries can be complex due to the variety of different taxes imposed. To shed light on this topic, a starting point is to examine income tax and compare the maximum tax rates. In Luxembourg, the highest tax bracket reaches 45.80%, while in the United Kingdom, it stands at 45%. These rates are closely aligned, indicating a comparable tax burden at the upper-income levels in both countries.
But this is only an initial perspective. Many other factors should be considered. This overview provides a starting point for evaluation, but seeking professional advice tailored to individual circumstances is highly recommended.
Relocation procedures and options
Relocating to a new country involves a myriad of questions and considerations. When contemplating a move to Luxembourg or United Kingdom, one might wonder about the visa requirements, residency permits, and the overall process of settling into a new environment. These are the common procedures required.
Popular grounds for relocation
Many individuals relocate for educational opportunities. Luxembourg boast prestigious universities and research institutions, attracting students from around the globe, while UK is world-famous for the best educational establishments in the world, such as Oxford and Cambridge. To study in these countries, one typically needs to secure a student visa.
Requirements usually include:
- Proof of enrolment at a recognised institution,
- Evidence of sufficient financial resources to cover tuition and living expenses,
- Valid health insurance,
- A valid passport.
Relocating for employment is another prevalent reason. Both Luxembourg and the UK have robust job markets in various sectors. To move for work, the following are generally required.
Requirements usually include:
- A valid job offer from a company in the destination country,
- A work visa or permit, which the employer often assists in obtaining,
- Proof of qualifications and sometimes proficiency in the local language(s),
- Valid health insurance and a clean criminal record.
Work documents required
If you are interested in working in Luxembourg, we recommend our detailed article on how to obtain a work visa for Luxembourg.
A special option in this area is the European Blue Card, which is available in most European countries, including Luxembourg. This card is intended for highly qualified workers, it offers certain advantages but also comes with special conditions for obtaining it.
Role and qualification
Great salary
ADEM approval
Moving to join family members is a common motivation for relocation. Family reunification visas allow spouses, children, and sometimes extended family members to live together.
Requirements typically include:
- Proof of relationship (marriage certificate, birth certificates),
- Evidence that the family member residing in the destination country can financially support the applicant,
- Accommodation that meets local standards,
- Health insurance coverage.
How to choose where to relocate between Luxembourg and the UK?
Relocating to a new country is a significant decision that involves considering numerous factors. As mentioned before, quality of life, safety, income and even taxes are quite comparable for both of them. So it might be very difficult to make a choice for one.
Frequently Asked Questions (FAQ)
Which country has a higher cost of living, Luxembourg or the United Kingdom?
How do the climates of Luxembourg and the United Kingdom differ?
How does the minimum salary compare between Luxembourg and the United Kingdom?
Source: consilium.europa.eu, ec.europa.eu, ons.gov.uk, ons.gov.uk, worldometers.info, migrationobservatory.ox.ac.uk, ec.europa.eu, ec.europa.eu, numbeo.com, es.wikipedia.org, rshiny.ilo.org, gov.uk, gov.uk, miielts.com
We took photos from these sources: Daniil Korbut on Unsplash
Very helpful!
Informative!
I didn’t get it.
This is outdated.
