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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.
Grand Duchy of Luxembourg
One of the world's smallest countries landlocked in northwestern Europe.
United States of America
Land of the free, skyscrapers, hamburgers and big cars.
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.
2,590
square kilometers – territory of Luxembourg
9,833,520
square kilometers – territory of the USA
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%.
Source: Data Worldbank
672,000
population of Luxembourg in 2024
334,914,895
population of the USA in 2023
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.
Languages
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.
Climate
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.
Lifestyle
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.
What are the similarities?
Beautiful nature and weather
Mild winters and pleasant climate of Luxembourg compares to the variety USA can offer, from beaches to snowy peaks.
Great for travelers
A well-developed structure for traveling, hostels and hotels, and a large flow of tourists who come to visit each year.
One language
English is natively used language in business and day-to-day communication, so it will be easy to blend in, knowing it.
Welcoming for expats
Both countries provide a great environment for those, who decided to create a new life in a foreign country.
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).
Source: Numbeo
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.
Source: Cost of Living Comparison by Numbeo
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.
Public transport in Luxembourg is completely free, learn why in our article
Read the articleEmployment 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.
Top demanded jobs in both countries in 2024
| 🇱🇺 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.
We have previously covered the possible salaries in Luxembourg in our article
Read articleIn 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.
2,418
euros (or 2,600 dollars) is the minimum wage for workers in New York City
1,168
euros (or 1,256 dollars) is the minimum wage for workers in Atlanta
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%.
3
tax classes with a different tax rate are present in Luxembourg
3
tax levels with a different rates: federal, state, local.
45%
the highest tax rate possible in Luxembourg
37%
is the highest tax rate on federal level in United States of America
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
Studies
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.
Work
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
You need to possess an employment contract for a year or more, which assumes a highly-qualified position in the company. Of course, you will also need to proof your qualifications with certification documents.
Great salary
Offered salary must be at least 1.2 times the Luxembourg average gross annual salary (67,824 euros) for professions such as mathematicians, systems analysts, software and web designers, programmers, database specialists, and network administrators, where a particular need for third-country workers is identified by the government. And at least 1.5 times the Luxembourg average gross annual salary (84,780 euros) for all other professions.
ADEM approval
In case you are coming from a third-country, outside the Schengen area, your employer will need to get a certificate allowing them to hire you from ADEM, local employment agency. They will make sure there is a need and there are no other people who can take the job currently at the labor market. Read more in our special guide.
Family
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.
🇱🇺 Luxembourg's best and not-so sides to see
Luxembourg boasts the highest minimum wages in Europe, providing a strong financial foundation for workers.
The country offers a vibrant, multicultural atmosphere with a large foreign-born population, making it welcoming to newcomers.
Luxembourg provides special visas, such as the European Blue Card, for highly qualified workers, facilitating easier relocation for professionals.
The low corporate tax rates make Luxembourg an attractive destination for entrepreneurs and business owners.
The country has a highly developed healthcare system, ensuring access to quality medical services.
Luxembourg offers free public transportation, making it easy and cost-effective to travel within the country.
While not as high as in USA, Luxembourg's cost of living is still considerably high, especially when it comes to renting prices.
The top income tax bracket in Luxembourg is significantly high, and the taxation is progressive.
The cost of housing in Luxembourg is quite steep, and it can be challenging to rent property on a budget, especially in the capital.
Obtaining a student visa requires proving substantial income, which can be difficult for foreign students. Additionally, students are limited to part-time work during their stay.
You might need to be persistent to acquire a permit and the citizenship afterwards. It requires a continuous living in the country and language skills, but not only.
🇺🇸 USA's pros and cons to consider
Who does not want to live by the shore. Or by the lake. Or by the mountain. You can choose freely here.
There are no language barriers, as the English language is solely spoken. You still might want to learn other languages, but there is no need.
If you work in Finance, IT or have a business, the USA will feel quite welcoming. It has a great job market, developed economy and opportunities in startups and more.
There is a big demand for unskilled workers, though the competition is still there. Sometimes, this competition might be more fierce.
Freedom is an invention of USA, so the society here is very accepting to many things, and it allows you to be yourself at its fullest. Depending on the state.
Availability of services and constant access to all goods any time of the day. Depending on the state.
A lot of possibilities to enjoy life for younger people, travelers and families alike. And shops are open on Sundays!
Very high cost of living might be an inconvenience for some people. Prices for rent, groceries and transportation are a factor to consider.
Taxes are not included in the prices at the shops, so you have to calculate them. Same goes for tips, which are mandatory here.
Expensive childcare services and good education options can be an inconvenience. Especially for younger children, and those wanting to attend public schools, if you move with your family.
The taxation system is clear, but it does not make it less progressive. So the more you earn – the more you pay.
A big competition with other people who came to fulfil their American dream, big immigration problem, and many other social issues to face chasing the dream of living in a big country.
Frequently Asked Questions (FAQ)
Which city is more expensive to live — New York, Atlanta or Luxembourg?
New York is the most expensive to live in, Luxembourg is the cheapest, while Atlanta is in between.
Which country has the best weather?
Luxembourg has a mild climate, moderate winters and nice summers although rainy days are not uncommon. In the USA the weather is very much depending on the state you will live in.
What about public transport in Luxembourg and the USA?
Public transport is well organized and safe in both countries, but in Luxembourg it is for free, in the USA it is rather expensive but prices depend on the state you are in.
Is education free in Europe and USA?
Both countries have a good education system, elementary and high school are free, Luxembourg has 1 university, while the USA has many universities and from the top 25 globally, 11 are in the USA.
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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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