Cost of living in Luxembourg, prices and what it is like to live for an Expat, quality of life / hardship, and compare cost of living for Expatriates as at October 2020.

What is it like to live in Luxembourg?

Luxembourg: The city of Luxembourg, also known as Luxembourg City, is a commune with city status, and the capital of the Grand Duchy of Luxembourg.

Economy: Luxembourg City is one of the wealthiest cities in the world, having developed into a banking and administrative centre. Luxembourg is a seat of several institutions of the European Union, including the European Court of Justice, the European Court of Auditors, and the European Investment Bank.

Inflation: 0.7% for Luxembourg as at September 2020.

Luxembourg Population: 180,000 (Metro) (2020 est.)

Expat Life: Luxembourgeois society is largely tolerant and personnel are unlikely to face discrimination. Business is fairly formal. Use of last names and professional titles is important in Luxembourg. Expatriate dress code is usually a suit and tie for men, and a two-piece suit or equivalent for women. The safety risk for expatriates in Luxembourg is low.

Health Care: Health care facilities are good, however the cost of treatment for expatriates from outside the EU can be high. The Coronavirus COVID-19 total reported cases for Luxembourg as at 15 October 2020 is 10,030, with 133 deaths. The rate of deaths per 1 million population is 211.

For other areas within the country see Luxembourg.

Cost Of Living

What is the cost of living in Luxembourg?

The cost of living for expatriates in Luxembourg as at October 2020 is very high in comparison to other places in the world, with an overall Cost of Living Index (COLI), for all 13 basket groups, of 89.87 (New York =100). We have collected prices for the same items, world wide, based on Expat spending norms, in or closest to the location, and converted them to $USD so that we can compare the cost of 13 different baskets in 780 global locations. For each basket, compared to New York, the equivalent cost in Luxembourg is as follows:

1) Alcohol and/or Tobacco: Cost is average for items such as beer, spirits, wine and tobacco related products such as cigarettes. A basket costing USD$1,000 in New York costs USD$850. Average price in a store for a midrange bottle of wine is USD$14.56, domestic/local beer (500ml) USD$3.39, imported/international beer (330ml) USD$3.26 and a pack of 20 cigarettes is USD$7.64.

2) Clothing: Cost is very high for items such as business, casual and children's clothing and footwear. A basket costing USD$1,000 in New York costs USD$1270. Average price for an international brand of mens jeans is USD$102, a quality international brand of running shoes USD$91, mens leather shoes suitable for office wear USD$140 while a medium size international summer dress from a global chain store is USD$47.

3) Communication: Cost is high for various communication costs such as home telephone rental, internet subscription, mobile service provider tariff and data costs. A basket costing USD$200 in New York costs USD$222. Average price for a monthly standard plan internet subscription is USD$54, while the benchmark mobile tariff is USD$0.23 per minute.

4) Education: Cost is average for items such as creche / pre-school fees, primary school fees, high school fees and tertiary study fees. A basket costing USD$30,000 in New York costs USD$24900. Average annual private international school fee (excluding extras) USD$16,098 for Primary School, and USD$17,914 for High School.

5) Furniture & Appliances: Cost is average for items such as dining table and chairs, home entertainment, kitchen appliances, and sofas. A basket costing USD$2,500 in New York costs USD$1725. Average price for a 6kg front loader Washing Machine is USD$644, and USD$553 for a 46+'' LED UHD TV.

6) Groceries: Cost is high for items such as consumables, cleaning products, dairy, fresh fruit & vegetables, general food products, snacks, soft drinks. A basket costing USD$1,000 in New York costs USD$980. Average grocery prices in a major international retail store for 1 kg apples is USD$3.90, 1 kg oranges USD$3.64, 1 head lettuce USD$1.78, 1 kg potatos USD$3.09, 1 kg boneless, skinless, chicken breast USD$16.02, 1 kg cheddar cheese USD$20.88, 1 dozen large eggs USD$5.37, 500g loaf white bread USD$3.33, 1 L full cream milk USD$2.02, and 1.5 L water USD$1.70.

7) Healthcare: Cost is average for general heath care, doctor visits, hospital stays, non-prescription medicine, and medical insurance. A basket costing USD$1,000 in New York costs USD$700. Average healthcare cost for a private practice Doctor visit for an uninsured patient is USD$56, and a private hospital stay per day including nursing care, medications, diagnostic tests, food, and related costs is USD$1,731.

8) Household Accommodation: Cost is very high for items such as apartment rent, house rent, property purchase, mortgage rate, and utilities. A basket costing USD$5,000 in New York costs USD$4200. Average expatriate house / apartment rent for a secure upmarket unfurnished apartment (3 bedrooms) is USD$4,469 in a central location, and USD$3,218 in a suburban location, per month, excluding utilities.

9) Miscellaneous: Cost is high for items such as dry cleaning, linen, magazines, newspapers, office supplies, and postage stamps. A basket costing USD$500 in New York costs USD$450. Average price for dry cleaning (1 mens 2 pc suit) is USD$8.79, while an international newspaper is USD$2.70.

10) Personal Care: Cost is average for items such as cosmetics, hair care, and toiletries. A basket costing USD$500 in New York costs USD$315. Average cost for a mens haircut and blow dry is USD$25, while a womens hair colour, cut and blow dry - medium length is USD$125.

11) Recreation & Culture: Cost is high for items such as books, cinema, sport and theatre tickets. A basket costing USD$500 in New York costs USD$505. Average price for a latest release international cinema ticket (average of on and off peak where applicable) for one adult is USD$15.08, and an international fitness, recreation or sports club membership cost for one adult is USD$61 per month.

12) Restaurants Meals Out and Hotels: Cost is very high for items such as hotel daily room rates, meals and beverages in a restaurant, and take away food and beverages. A basket costing USD$1,000 in New York costs USD$1000. Average cappuccino price (regular, medium) is USD$4.84, coke/pepsi (330ml) USD$3.97, burger meal (international franchise or similar) USD$13.10, and a mid-range international restaurant meal for 2 USD$101.96.

13) Transport: Cost is high for items such as fuel (petrol/gasoline), car hire, public transport, vehicle purchase and maintenance. A basket costing USD$1,000 in New York costs USD$990. Average average price over the last year for highest available octane petrol / gasoline (1L) is USD$1.33, while the benchmark car sedan purchase price including taxes/duties for a compact / small / economy vehicle (1.4 L) is USD$23,696.

How does the cost of living in Luxembourg compare?

Luxembourg is 19.6% more expensive than USA for groceries, 28.4% more expensive for household costs than UK, and 107.4% more expensive for transport costs than India.

What is the quality of life / hardship in Luxembourg?

Luxembourg is ranked as a minimal hardship location.The hardship premium for Luxembourg for an expat from Australia, is for example 0%, i.e. host location (Luxembourg) premium of 10% minus home (Australia) location premium of 10%.

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