Luxembourg, one of Europe’s wealthiest nations, offers more than just financial prosperity. With excellent infrastructure, a strong job market, and an enviable public service system, it continues to attract professionals, expats, and families from around the world. But while the Grand Duchy shines in terms of quality of life, the cost of living in Luxembourg remains one of the highest in Europe and it’s essential to prepare financially, especially for those earning in US dollars or relocating from lower-cost regions like Germany, Belgium, or France.
Is Luxembourg expensive?
Yes, by most international standards. While salaries in Luxembourg are high and unemployment is low, prices across sectors like housing, dining, and private services can quickly add up. However, the country also offers unique benefits: free public transport, world-class healthcare, and one of the most multilingual societies in the world.
If you’re relocating from France or Belgium, expect an increase in monthly expenses, particularly on rent. If you’re arriving from Germany, where rent and dining are often more affordable, the difference will feel even sharper. For Americans moving to Luxembourg, converting USD to EUR can feel expensive, especially if your income is in dollars and not pegged to local earnings.
Summary:
- Luxembourg is pricier than its neighbors
- Rent is the main expense, especially for expats in the capital
- Free transport and strong social services offer some balance
Housing: the single largest expense
Housing costs in Luxembourg are significantly higher than in nearby cities like Trier (Germany), Arlon (Belgium), or Thionville (France). In Luxembourg City, a one-bedroom apartment in the city center typically costs between €1,600 and €2,500 per month, which is approximately $1,750 to $2,700 depending on exchange rates. For those looking in nearby towns like Esch-sur-Alzette or Ettelbruck, prices are slightly lower, ranging from €1,200 to €1,800/month ($1,300–$1,950).
Larger homes for families, particularly in expat-heavy areas, can reach €4,000–€4,500/month ($4,300–$4,800). Unlike in Germany, where many rentals come unfurnished, most Luxembourg rentals are fully equipped but in high demand, meaning competition is fierce.
Utilities, including heating, electricity, water, and internet, typically cost €180 to €350/month ($195–$380), depending on household size and season.
To recap:
| Housing type | Average price |
|---|---|
| Luxembourg City rent | €1,600–€2,500/month |
| Outside city rent | €1,200–€1,800/month |
| Family housing | €2,500–€4,500/month |
| Utilities | €180–€350/month |
Food and grocery prices: what to expect
Groceries in Luxembourg are on par with Belgium but more expensive than in Germany or France. A monthly grocery bill for one adult ranges between €300 and €550, or $325 to $600. If you’re used to shopping in German supermarkets like Aldi or Lidl, prices in Luxembourg may come as a shock, although many locals cross the border to shop more cheaply in Germany or France.
Eating out is where costs can add up quickly. A simple lunch at a bakery or takeaway costs around €8 to €15, while a dinner in a mid-range restaurant will be €20 to €40 per person. High-end restaurants start at €60+ per person and can easily double that with wine and dessert. This makes dining out considerably more expensive than in Brussels or Cologne.
| Food type | Average price |
|---|---|
| Groceries | €300–€550/month |
| Casual meals | €8–€15 |
| Mid-range dinner | €20–€40 |
| Fine dining | €60+ |
Transportation: free for everyone
Luxembourg is the first country in the world to offer nationwide free public transportation, including buses, trains, and trams. Whether you’re commuting daily or just sightseeing, you won’t need to budget for public transport at all.
If you own a car, fuel prices are moderate at around €1.60 per litre ($6.00 per gallon), cheaper than in France or Germany. Car insurance costs between €800 and €1,500 per year depending on the model and coverage.
Taxis and ride-sharing apps like Webtaxi or Uber (limited availability) are pricey, with fares starting around €3 base rate and €2 to €3 per kilometer.
| Expenses related to transport | Average price |
|---|---|
| Public transport | Free |
| Petrol | €1.60/litre |
| Car insurance | €800–€1,500/year |
| Taxi fare | €3 base + €2–€3/km |
Healthcare: public and private options
Healthcare in Luxembourg is of excellent quality. The CNS (Caisse Nationale de Santé) covers most residents and reimburses up to 80% of doctor’s fees. A general practitioner visit typically costs €40 to €60 ($43–$65), and most of that is reimbursed within weeks. Emergency care is efficient, and the system is highly digitalized.
For those who prefer faster or English-speaking private providers, private consultations cost €70 to €150 per visit. Expats often choose supplemental private insurance, which ranges from €100 to €250 per month ($110–$270).
Compared to the US, where even basic insurance plans can cost $400/month or more, healthcare in Luxembourg is both more affordable and reliable.
| Medical expenses | Average price |
|---|---|
| Public doctor visit | €40–€60 (reimbursed 70–80%) |
| Private consultation | €70–€150 |
| Supplemental insurance | €100–€250/month |
Education: public, private & international
Luxembourg’s public schools are tuition-free and offer a multilingual curriculum in Luxembourgish, French, and German. While they maintain a high standard, some expats prefer international schools that offer English-based or IB programs.
Tuition at international schools such as the International School of Luxembourg or St. George’s ranges from €6,000 to €18,000 per year, or approximately $6,500 to $19,500. The University of Luxembourg, a top-ranked public institution, charges just €400 to €800 per semester, making it one of the most affordable in Europe.
| School system | Average fees |
|---|---|
| Public school | Free |
| International school | €6,000–€18,000/year |
| University | €400–€800/semester |
Cost of living comparison: Luxembourg vs Neighbors
| Category | Luxembourg (€) | France (Metz) (€) | Belgium (Arlon) (€) | Germany (Trier) (€) |
|---|---|---|---|---|
| Rent (1-bed city center) | €1,600–€2,500 | €800–€1,200 | €900–€1,300 | €700–€1,100 |
| Groceries (monthly) | €300–€550 | €250–€450 | €280–€500 | €220–€400 |
| Transport (monthly) | €0 | €50–€70 | €60–€90 | €60–€100 |
| Health insurance | €100–€250 | €90–€180 | €100–€200 | €110–€220 |
As you can see, Luxembourg prices are consistently higher, especially in terms of rent. That said, free transportation and strong healthcare coverage offset some of the high costs.
Additional considerations
- Lifestyle Choices: Savings are possible with shared housing, home cooking, and free public transport.
- Taxation & Benefits: Luxembourg has progressive taxation but strong social security benefits.
- Multilingual Society: Life is easier if you speak French, German, or Luxembourgish.
- Cross-Border Workers: Many professionals live in France, Germany, or Belgium to save on rent while working in Luxembourg.
- Leisure & Entertainment: Museums, festivals, and nature activities are abundant, but nightlife is relatively expensive.
- Personal Insight: For a firsthand look at life as an expat woman in Luxembourg, read this insightful testimonial covering real-life challenges, career reflections, and cultural experiences.
Final Thoughts
Living in Luxembourg offers a premium lifestyle in the heart of Europe, with top-tier healthcare, public services, and job opportunities. For expats earning in dollars, the conversion and daily expenses may initially feel steep, but careful planning makes a big difference.
Compared to France, Belgium, or Germany, housing and dining are more expensive, but the safety, career opportunities, and free transport often justify the price. Luxembourg isn’t a budget destination, but for professionals and families seeking stability, opportunity, and quality of life, it remains one of Europe’s top choices.