Luxembourg, August 5, 2025
For the thriving expat community in Luxembourg, where over 48% of residents hail from abroad, staying informed about the country’s economic health is more than a curiosity—it’s a lifeline. The latest OECD Economic Surveys: Luxembourg 2025, published on April 28, 2025, offers a detailed snapshot of the Grand Duchy’s economic landscape, providing valuable insights for expatriates navigating jobs, housing, and financial planning. Here’s what you need to know, straight from the facts.
Robust Growth Amid Global Uncertainty
Luxembourg’s economy continues to impress, with GDP growth projected at a steady 2.5% for 2025, according to the OECD. This resilience is driven by the financial sector, a cornerstone for many expat professionals, and a booming tech industry that’s attracting global talent. For expats working in finance or IT—two of the largest employment sectors—this growth signals job stability and potential salary increases. The OECD notes that low unemployment, hovering around 4.8%, further bolsters the job market, making it an opportune time for skilled workers to settle or advance their careers.
Housing Challenges: A Reality Check
However, the snapshot highlights a pressing concern: housing affordability. Rapid population growth, fueled largely by expatriates, has pushed housing costs up by 6.7% annually. The OECD warns that this could strain expat budgets, especially for families or new arrivals. Rent controls and increased construction are on the horizon, with plans to add 5,000 new housing units by 2026. For expats, this means planning ahead—consider areas like Gasperich or Kirchberg, where new developments are underway, to balance cost and convenience.
Tax Benefits and Public Services
One of Luxembourg’s biggest draws for expats remains its tax regime. The OECD praises the country’s competitive tax system, with a top personal income tax rate of 42% that still offers deductions and credits, particularly beneficial for high earners in the financial sector. Public services, including healthcare and education, also score high, with 98% of residents covered by the national health system—a relief for expats managing insurance costs. The OECD suggests leveraging these services early, especially for families enrolling children in international schools, which are well-supported by government subsidies.
Sustainability and Innovation
Luxembourg is doubling down on sustainability, targeting a 55% reduction in greenhouse gas emissions by 2030. This green push is creating niche opportunities for expats in renewable energy and environmental tech. The OECD highlights a 15% increase in green jobs since 2023, a trend that could appeal to eco-conscious professionals. Additionally, the country’s investment in digital infrastructure—boasting 5G coverage across 90% of its territory—enhances remote work options, a boon for expats balancing global careers.
The OECD’s 2025 snapshot, accessible at oecd.org/en/topics/sub-issues/economic-surveys/luxembourg-economic-snapshot.html, is a goldmine for expats. With a stable job market, tax advantages, and growing sectors, Luxembourg remains a top destination. Yet, the housing crunch calls for proactive planning, and the green economy opens new doors. Whether you’re a finance expert, tech innovator, or family relocating, these facts empower you to make informed decisions in one of Europe’s most dynamic economies.
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