The cost of living in Luxembourg

If you are coming to Luxembourg and need to find a house or apartment to rent, data from the Housing Observatory in June 2024 indicates that the average rental cost for an apartment in Luxembourg is EUR 33.53 per square metre.

Of course, the capital is the most expensive at EUR 39/m². The further out from the City of Luxembourg you are, the greater the chance of finding a less expensive apartment. Rents are most attractive in Clervaux (EUR 16.52/m²) and Weiswampach (EUR 16.69/m²), two municipalities at the northernmost tip of the country on the border with Germany and Belgium.

The average rental cost for a house is less expensive at EUR 17.67/m² for the country as a whole and EUR 22.19/m² in the City of Luxembourg, but availability is very limited.

You will have to provide a rental guarantee in order to rent an apartment and sign a lease agreement in Luxembourg.

We recommend that you ask your bank to provide this guarantee in order to keep track of the transaction.

The bank will block the required amount on your savings account. This guarantee cannot be more than three months’ rent. The rental guarantee provided by the bank should generally be given to the owner when the keys to the property are handed over.

At the end of the lease, the rental guarantee is returned to the bank which releases the funds, providing the property owner has not provided notification of any incidents.

You will notice that the cost of living is relatively high in Luxembourg when you do your grocery shopping.

For example, a six-pack of Perrier (6x1 litre) will cost you EUR 4.19, a pot of Bonne Maman strawberry jam EUR 2.09, 250 grammes of Carte Noire ground coffee EUR 4.50 and 30 Ariel clothes washing capsules EUR 18.25.

Luxembourg has a wide range of supermarket chains. Cactus is the local brand with the best coverage and over 70 stores. Auchan, Leclerc, Monoprix, Aldi, Lidl and Delhaize are also present. You will also find specialist organic chains such as Naturata and many artisans offering local products.

On average, groceries in Luxembourg are 10% more expensive than in France or Germany.

The healthcare system in Luxembourg is one of the best in Europe. It is supervised by the Caisse Nationale de Santé (CNS) and guarantees basic healthcare cover for all citizens.

In practice, you pay for your medical expenses when you visit the doctor. You then submit a reimbursement request to the CNS, which covers between 80% and 100% of the cost. Drugs purchase on prescription are also reimbursed by the CNS at a rate of 40%, 80% or 100%.

A visit to your GP will cost EUR 57.70, but the reimbursement rate is 88% for adults and 100% for children under 18.

Around 90% of your medical costs are covered by the CNS but you also have the option of taking out private top-up health insurance. This means you will be covered for additional reimbursements, more generous options if hospitalised or, if you have children, for all dental costs for example. Many employers also offer additional healthcare coverage as part of the employment package.

Good to know: sending prescriptions and invoices to the CNS for reimbursement is free of charge – no need to add a stamp!

Public transport is free across the country. In the City of Luxembourg and the surrounding area, the public transport network is extremely well-developed and travel is rather easy. In the countryside, most regions also have good coverage by buses.

If you need personal transport, the average cost of a new car is EUR 25,000 in Luxembourg. You also have to pay an annual tax calculated on the basis of CO₂ emissions (WLTP). This is a minimum of EUR 30 for an electric vehicle with zero emissions and EUR 148.50 for a vehicle with emissions of 150 g of CO₂/km.

You will obviously have to take out car insurance. A regular MOT is obligatory for cars over four years old. This costs EUR 67.50.

If you prefer sustainable mobility, Luxembourg has great cycle lanes, in town as well as across the country.

Depending on your situation, the government offers certain subsidies for the purchase of a bicycle. With BGL BNP Paribas you can also access a zero rate loan for the purchase of your electric bicycle.

Luxembourg has introduced Childcare Service Vouchers (CSA) which allow parents to benefit from reduced rates for their children in nursery, in after school daycare, and with a childminder.

The government’s contribution to childminding costs is capped at 60 hours per week and depends on:

• the income of the household in which the child lives;
• the number of children receiving child benefits and the child’s rank in the family group;
• the type of childcare establishment;
• the number of hours of childcare used.

The first 20 hours of childcare in a recognised public establishment are free for all children aged 1 to 4.

From the age of 4, children are registered in the state school system which is free and organised by the municipalities.

Daycare before or after school is also free of charge. This applies during the school week to all children over the age of 4 who are in school.

Children do lessons in Luxembourgish, German and French from the first years of schooling.

There are also several state and private international schools in Luxembourg, including the Lycée Vauban, the European School, St George’s International School and the International School of Luxembourg. The costs for schooling and childminding in these schools can run to over EUR 20,000 per year.

In Luxembourg, most municipalities have high-quality sporting facilities and public swimming pools are accessible throughout the year across the country. There are also many active sports clubs covering all imaginable disciplines.

Music is encouraged from an early age. The government has made a very large proportion of music, dance and drama lessons free in municipal music establishments for all children and young people under the age of 18.

The price of a cinema ticket in Luxembourg ranges between EUR 10 and EUR 15 depending on the cinema, day of the week and type of film (e.g. 3D or IMAX). There may be some reductions for students, children and senior citizens.

The country has a wide variety of cultural venues, theatres and museums. Entry to the MUDAM museum of modern art costs EUR 10. Entry to the Lëtzebuerg City Museum costs EUR 5 and to the Musée National d’Histoire et d’Art is often free (except for temporary exhibitions).

If you want to have a drink or a meal out, there are numerous high-quality options. A fixed daily menu will cost EUR 15-20 and a main course in a brasserie EUR 20-30.