Cost of living in Luxembourg
Average monthly spending, by standard of living, by category, and against other countries
Monthly cost
€2,880
what a typical person spends
Spending by standard of living
€1,230richest 20%
€7,070
Luxembourg is a small, rich country built around finance, and that wealth shows up in the price of nearly everything. Pay is high, and so is the cost of the comfortable life that pay is meant to buy; a tiny country with little room to build feels it most in what a home costs. Comfort and just-coping aren't the same here, though the gap between them is noticeable without being severe.
Where people spend money in Luxembourg
The largest share of a month goes on housing, and in a country this small with workers pouring in, there's never quite enough of it. Getting around eats into the budget too, and groceries sit higher than you might expect for somewhere in the middle of Europe. The food and the travel you can manage at the edges; the home is the fixed weight.
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What it costs to live in Luxembourg
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Cost of living in Luxembourg
€1,230/mo
vs €692 in your country
Take-home
€1,760
vs €1,040 in your country
Potential savings
€524
more than in your country
Standard of living
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How living costs in Luxembourg compare
Against the world, Luxembourg is firmly in the most-expensive bracket, and even among its well-off European neighbors it sits at the top. It's a wealth story: a dense concentration of high-paying work in a very small space pushes up the cost of being there, the price of a home most of all. For a mover, the high pay is real, but so is what it takes to stay.
Data source: household consumption 2023 (World Bank), International Comparison Program 2021 (World Bank), category breakdown 2023 (Eurostat), adjusted to 2026 using IMF GDP-per-capita growth
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Frequently asked questions
What is the cost of living in Luxembourg?
A typical person in Luxembourg spends about €2,880 a month — around €34,500 a year — on housing, groceries, transport and other everyday costs. It's a nationwide average across different regions, cities and types of housing.
What is the cost of living in Luxembourg in US dollars?
The cost of living in Luxembourg is about $3,326 a month, or roughly $39,912 a year per person.
How much money do you need to live comfortably in Luxembourg?
It all depends on your standard of living. A modest budget runs about €1,230 a month per person, a typical one around €2,880, and a comfortable life around €4,030. In big cities and for a family, costs are usually higher.
What do people spend the most on in Luxembourg?
The biggest expense is housing, at about €587 a month (20% of spending). Then come transport (€412, 14%) and groceries (€276, 10%).
Is the average salary in Luxembourg enough to live on?
In most cases yes, but without much of a cushion. Average spending is about €2,880 a month, while the average take-home pay in Luxembourg is about €3,900. For more on incomes, see salaries in Luxembourg.
Is Luxembourg an expensive country to live in?
Yes. Luxembourg is more expensive than 98% of countries worldwide and ranks 3rd of 41 in Europe by cost of living.
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Living in Luxembourg
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