Luxembourg vs. the USA for future expats
The article will help future expats to make a choice between living in the USA or Luxembourg. A comparison of population, quality of life, cost of living, job opportunities, minimum and average wages and tax systems.
Luxembourg is a small country in northwest Europe. The USA is one of the largest in the world, on another continent. Can you compare Luxembourg and the USA? Which country is better? Let's find out.
Luxembourg vs USA: briefly about the main things
Bounded by two oceans, the North Atlantic ocean in the east, North Pacific ocean on the west, and Canada in the north and Mexico in the south, USA is one of the biggest countries in the world. The USA has a population of almost 335 million people from many different cultures. Most people are white (61.6%), followed by African American (12.4%), two or more races (10.2%), and Native American (1.1%). The USA has plains, steppes, mountains, and big lakes. People are friendly.
Luxembourg has borders with 3 other countries too: 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. Luxembourg is well known for its mountains and beautiful nature. People are kind and sincere. The pace of living in Luxembourg is relaxed.
In the next few sections, we'll look at the main things that affect the decision for relocation, from the cost of living to job opportunities.
Population and territory
Luxembourg is much smaller than the USA. It is only 2,586 square kilometers, while the USA is 9,833,520 square kilometers. Luxembourg is 3,802 times smaller than the USA. The USA has seven lakes that all are bigger than Luxembourg.
It is hard to compare Luxembourg and the USA because of the huge differences in territory and population. The enormous scale of the population of the USA, at nearly 335 million, is roughly 478 times the entire population of Luxembourg. There are 20 cities in the USA with a population that is larger than the population of Luxembourg. Though, the growth of the population in the USA since 2000 is only 18.1% while in the Grand Duchy it is 49.7%.
Expat population
In terms of the composition of population, Luxembourg had a considerable proportion of its population born in other countries, amounting to 43%. The majority of these individuals were of Portuguese and French nationality. In USA 15.4% of the population are expats, the majority of them is from Asia (40%) followed by 35% from North America and 12% from Europe.
General vibe compared
GDP is a good indicator of a country's overall well-being. In this case, both countries have above-average GDP, with Luxembourg leading the way in 2022 with a GDP per capita of 125,006 USD, compared to the USA's 76,329.58 USD.
Language will not be a problem for foreigners living in one of those two countries. In both countries most people speak English. In the USA there is a large group of people who speak Spanish. In Luxembourg German, French and Luxembourgish are the official languages. Next to that almost everybody speaks English too.
Luxembourg has mountains and overall a beautiful and great nature. The winters are moderate with temperatures between +3°C to -6°C, and the summers are warm and pleasant. Depending on which state in the USA you want to live in, the nature will be different, from very hot and dry in Texas to cold and long winters in Alaska.
Some states are flat, other states have mountains. Here you can find the weather per state. To make it a bit more complicated, the USA uses Fahrenheit to tell the temperature.
Caclulations
The correct formula is ºF = (ºC * 1.8) + 32.
Life in Luxembourg is relaxed and family-friendly. Because it is small, everything is conveniently close, and there is a strong emphasis on community and quality of life. The Grand Duchy is well known for its high standard of living, excellent healthcare, and affordable education systems. People living in Luxembourg take the benefits of living in a mixed environment of city and village life, with picturesque villages and modern city facilities. Another factor which could be interesting is the work/life balance, which is very good in comparison to the USA.
Of course there are many cities in the USA, and it depends very much which location you choose to settle down. Overall health care is much more expensive than what you can see in the health care index comparison. Living in a big city in the USA also means that almost everything is available 24/7, but comes with high expenses for renting or buying property.
Living in Luxembourg can be very satisfying. It is not difficult to find an outstanding job with high wages and feel happy in a relaxing city. The USA has many great opportunities to make your life awesome, but that depends very much on in which location you want to live and how deeply you believe in American dream.
Quality and cost of life
The next two aspects we'll analyse are the quality of life and the cost of living in both countries, two extremely important elements that often go hand in hand.
Quality index
Assessing the well-being trends of European citizens is quite complex due to the subjective nature of this aspect. However, European Union statistics provide some insights. One such metric is the Global Life Satisfaction Index, where Europeans rate their life satisfaction on a scale from 0 (very dissatisfied) to 10 (very satisfied).
The overall Global life satisfaction index in both countries is quite comparable, with a 7.4 for Luxembourg and a 7.0 for the USA. Luxembourg claims the first place, whereas the USA follows on the 15th place on the Quality of Life Index report of 2024 by Numbeo.
Luxembourg city outscores New York on all relevant indexes like the quality of life, Safety index, healthcare index, the traffic commute time, the climate, the cost of living, property price per income ratio, and the pollution index.
Cost of living
Comparing the cost of living in Luxembourg vs the USA is a bit more complicated. Luxembourg is a small country in Europe, where the USA is a huge country in North America. Therefore, we compare 6 American cities to Luxembourg. First we will look at the cost of living. The cost of living in Luxembourg is lower than in any of the 6 American cities.
Good news for Luxembourg residents, the cost of living in Grand Duchy is 37.1% lower than the most expensive American city (New York) and 18.4% lower than the cheapest American city (Atlanta).
A large part of this difference compared to New York comes from lower rent for accommodations. Another part is that restaurant prices are 27,3% lower in Luxembourg. Prices for groceries are 37.2% lower in Luxembourg, but local purchasing power in Luxembourg is 73.2% higher than in New York.
As Atlanta is the American city where the cost of living is the lowest, let’s compare that as the second city. The main industries in Atlanta are aviation, film, entertainment, fintech, healthcare and biotech, logistics. Compared to Atlanta, life in Luxembourg including rent is 13.5% cheaper. Going a night out to a restaurant or shopping for groceries are 5.4% and 24.5% cheaper in the Grand Duchy. Local purchasing power is 24.6% higher in Luxembourg.
If you consider living in Luxembourg or the USA and you have a family, the price for childcare can be an important factor. In Luxembourg childcare is cheaper than in the USA, the average price in Luxembourg is 1,257.81 euro, and in the USA the average price is 1,269.92 euro. Considering the size of the USA, we checked the local prices for childcare in both New York and Atlanta, which are quit higher: 1,636.80 euro for New York and 1,533.10 euro for Atlanta.
In both countries, basic education till high school is for free. It is possible to enroll into international schools although they ask a yearly fee. Luxembourg has 1 university, while the USA has many universities, including 11 in the top 25 of the best universities.
Public transport is well organised and safe in Luxembourg. Risks are higher in the USA. Public transport in Luxembourg is free, and in New York it costs 123 euro for a month, in Atlanta it costs 89 euro for a month. Both New York and Atlanta have large airports. This means that it is very easy to fly anywhere. Although Luxembourg airport is a major regional airport, it has fewer international flights.
Employment and job opportunities
We have reached a crucial point: employment and work opportunities. Both countries have plenty of great job opportunities. If you're an experienced, highly skilled expat, you'll have no problem finding a good job in one of these countries. Larger companies are always on the lookout for well-educated and experienced employees.
If you're just starting out, a great way to gain experience is to apply for paid internships. The big financial companies are in New York, but you'll find plenty of finance jobs in other large cities too. There are tech companies in Atlanta and New York, but Silicon Valley is the place to be. In Luxembourg, you'll find both finance and tech companies based there.
BYOB (Bring Your Own Business)
Luxembourg and the USA are both great countries to start your own company. Certainly for the USA it is called the American dream. You can find more information about this topic on the following websites: for Luxembourg and for the USA.
Top industries
In both the Grand Duchy and the USA you can easily find job opportunities in construction, tech, healthcare, logistics and finance. Another sector in the USA that is growing fast is renewable energy.
How to get a job in Luxembourg: application, interview, contract
Professions in-demand in Luxembourg vs. United States
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) and ProdigyFinance website.
| 🇱🇺 Luxembourg | 🇺🇸 United States |
| Analysis of loans and banking risks | Home health and personal care aides |
| Bank customer management | Software developers |
| Office and middle management in the financial | General and operations managers |
| Paving and restoration of pavements | Fast food and counter workers, waitresses, cooks |
| Management and engineering industrial researchers | Registered nurses and practitioners, medical personnel, alternative medicine |
| Production management and engineering | Market research analysts and marketing specialists |
| Installation and maintenance of industrial equipment | Wind turbine service technicians |
| Caregiver Assistant / Nurse | Sports officials like umpires, referees etc. |
| Psychologist | Ushers, lobby attendants, and ticket takers |
Minimum wages and salaries
As Luxembourg is a very small country in Europe and the USA has multiple states, where every state has its own laws regarding minimum wage, it is very difficult to compare the minimum wages and salaries in general. In European Union Bulgaria has the lowest minimum wage, where Luxembourg has the highest. There are two minimum wages: one for unskilled workers and another for skilled workers in Luxembourg. 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.
The salary in Luxembourg is based on a few major components like which industry, levels of skill and experience and the employees age. In a country situated in the European Union, factors like equality and fairness are important factors, yet it is not allowed to have an influence on the salary of an employee.
In the USA the laws regarding wages are both on federal and state level. The minimum wage on the federal level is 7,25 dollars (6,74 euro) an hour. The state of New York has raised the minimum wage to 15 dollars (13,95 euro) an hour. Georgia, where Atlanta is situated, kept the minimum wage at 7,25 dollars. In case you want to move to the USA, it will be very important to look not only at federal laws, but also at the local state laws.
Taxation of the income
Luxembourg has a progressive tax system, whereby taxpayers are required to pay a higher tax rate on their income above a certain threshold. The tax system in the USA is on federal, state and local level. Federal tax is between 10 and 37%. The states have different levels of taxes from 0 to 13,3%. New York income taxes vary from 4% to 10,9%. Georgia’s taxes are between 1% and 5,75%.
This provides an initial perspective, but many other factors must be considered. It is advisable to seek professional advice tailored to individual circumstances to get a comprehensive understanding of tax implications.
Before and after taxes
If you would like to get an idea of how much tax you would have to pay in Luxembourg, take a look at our service. We have created an income calculator, that explains a lot.
Relocation procedures and options
Relocating to a new country involves a myriad of questions and considerations. When contemplating a move to Luxembourg or USA, 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 and USA boast prestigious universities and research institutions, attracting students from around the globe. 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 USA 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 USA?
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 city is more expensive to live — New York, Atlanta or Luxembourg?
Which country has the best weather?
What about public transport in Luxembourg and the USA?
Is education free in Europe and USA?
Source: ec.europa.eu, en.wikipedia.org, numbeo.com, luxtoday.lu, luxtoday.lu, luxtoday.lu, en.wikipedia.org, en.wikipedia.org, data.worldbank.org, usafacts.org, worldpopulationreview.com, numbeo.com, vikingmergers.com, tootris.com, en.wikipedia.org, topuniversities.com, sba.gov, en.wikipedia.org, ebizfiling.com
We took photos from these sources: Eryka-Ragna on Unsplash
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