Living in Luxembourg
Cost of Living in Luxembourg — A Practical Guide
An honest, up-to-date overview of everyday costs, written for people planning their move. Figures are indicative and updated for 2026.
Housing — your biggest cost
- Housing is by far the largest expense. The average advertised rent in Luxembourg is around €1,650 per month (roughly €28 per m²), with Luxembourg City well above that and the north and south noticeably cheaper.
- As a rough guide: a studio or 1-bedroom in the City often starts around €1,400–€1,800; family apartments commonly exceed €2,500.
- New tenants typically pay more than long-standing ones, and good properties are let within days — being prepared with your documents makes a real difference.
- Renting with domestic animals is more difficult: many landlords do not accept pets, so it is worth mentioning your situation early and being prepared for a smaller pool of suitable properties.
Transport — free public transport
- All nationwide public transport — trains, trams and buses — is completely free (second class). This is unique in the world and saves a typical commuter hundreds of euros a month.
- If you drive, fuel is cheaper than in neighbouring countries, but parking in the City is limited and expensive.
Groceries & eating out
- Supermarket prices are around 20–30% higher than in France or Germany. Many residents shop across the border for everyday items.
- A lunch menu in the City is typically €15–€25; dinner for two in a mid-range restaurant around €80–€100.
Childcare & schools
- Public schooling is free and multilingual (Luxembourgish, German, French). International and European schools are fee-paying and can be a significant budget line.
- Childcare is subsidised through the Chèque-Service Accueil scheme, which reduces crèche and day-care costs considerably depending on household income.
- Families receive a monthly family allowance per child, paid by the CAE.
Healthcare
- Health insurance through the CNS is mandatory and employer-employee contributions are deducted from your salary.
- The CNS reimburses most consultations, treatments and prescriptions — usually 80–100%. Many residents add private top-up insurance.
Salaries & the bigger picture
- The social minimum wage is €2,771 gross per month (unqualified) and €3,326 (qualified), following the June 2026 indexation.
- Salaries are automatically adjusted to inflation through the national indexation system — when prices rise past a threshold, wages increase by 2.5%.
- Luxembourg regularly ranks among the most expensive countries in Europe, mainly because of housing; free transport, strong family benefits and salary indexation offset part of that.
Upfront rental costs and what's included
- When you sign a lease, you normally pay the first month's rent, a deposit of up to two months' rent (or a bank guarantee), and the agency commission, which is usually half of one month's rent plus VAT.
- The advertised rent usually includes charges. These cover common building costs; inside the apartment they typically cover only the heating system and hot/cold water.
- Electricity, internet and home insurance are usually not included in the rent and must be budgeted separately. Home insurance is mandatory.
Sources: STATEC, IGSS (social parameters as of June 2026) and current rental market data. Figures are indicative averages and vary by location and property.
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