Cost of Living in Luxembourg! (2025 Update)

Luxembourg, one of the wealthiest countries in Europe, is known for its high quality of life, strong economy, and vibrant international community. But with prosperity comes a higher price tag. Whether you're planning to move for work, study, or family reasons, it's important to understand the cost of living in Luxembourg in 2025.

🏡 Housing Costs

Housing remains the largest expense for most residents. The demand continues to outpace supply, especially in and around Luxembourg City.

• Rental Prices (Monthly Averages in 2025):
  • One-bedroom apartment (City Centre): €1,800 – €2,400
  • One-bedroom apartment (Outside Centre): €1,300 – €1,700
  • Three-bedroom apartment (City Centre): €3,500 – €4,500
  • Three-bedroom apartment (Outside Centre): €2,300 – €3,200

Buying property is also expensive. The average price per square metre is around €11,000 in the city and €7,500 outside.

🍽️ Food & Groceries

Groceries are reasonably priced compared to neighbouring countries, especially for locally produced goods. However, eating out can be pricey.

• Grocery Price Highlights:
  • Milk (1L): €1.30
  • Bread (500g): €2.50
  • Eggs (12): €4.00
  • Chicken breast (1kg): €12
  • Domestic beer (0.5L): €1.60
• Dining Out:
  • Meal at a mid-range restaurant: €30 – €45 per person
  • Takeaway lunch (downtown): €12 – €18
  • Coffee (regular cappuccino): €3.50 – €4.20

🚗 Transport

Luxembourg remains the first country in the world with free nationwide public transport, including buses, trains, and trams. This policy continues in 2025, making commuting highly affordable.

• Car Costs (if owned):
  • Petrol (per litre): €1.55 – €1.70
  • Car insurance (annual average): €700 – €1,000
  • Parking in city centres: €2 – €5/hour

Many residents use bicycles and e-scooters, especially in urban areas with good cycling infrastructure.

🧾 Utilities & Internet

• Basic utilities (electricity, heating, water, waste for 85m² apartment): €250 – €350/month
• High-speed internet: €45 – €65/month

Utility costs may increase in winter due to heating requirements.

👨‍👩‍👧‍👦 Childcare & Education

Luxembourg offers a mix of public and private schools, with the public system being free and offering multilingual education.

• Daycare (private, full-day): €800 – €1,500/month
• International schools: €10,000 – €20,000/year depending on the curriculum and grade level

👚 Clothing & Leisure

• Jeans (branded): €70 – €120
• Gym membership: €40 – €100/month
• Movie ticket: €12 – €15
• Museum entry: Often free or €5 – €10

💰 Average Salary & Minimum Wage

• Minimum monthly wage (2025):
  • Unskilled workers: €2,570 gross
  • Skilled workers: €3,084 gross
• Average gross salary across sectors: €5,500/month

High salaries help balance the cost of living, particularly for skilled professionals and expats.

✅ Conclusion: Is Luxembourg Affordable?

Luxembourg is not a cheap place to live, but it offers excellent public services, low unemployment, safety, and multilingual opportunities. While housing is a significant burden, free public transport, a strong welfare system, and high incomes help balance the overall cost of living.

For expats and newcomers, budgeting carefully and understanding your personal lifestyle choices is key to making the most of your life in the Grand Duchy.

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