City guide

🇱🇺 Living in Luxembourg City

Home to the EU's highest GDP per capita: high salaries, trilingual culture, and the impatriation tax regime

Not sure Luxembourg City is your city? Take the 2-minute quiz →

At a glance

Population
130,000 (metro: 200,000)
Currency
EUR
Avg. salary
€55,000–€85,000
Effective tax
25–35%
Climate
Oceanic
Tax regime
Progressive 0–42%, expat regime available
Nomad visa
–

Net salary calculator

Calculate your take-home pay in Luxembourg City with our detailed tax calculator.

Calculate net salary →

Cost of living

Rent (1-bed, center)€2,000/mo
Rent (1-bed, suburb)€1,750/mo
Groceries (single)€350/mo
Groceries (family)€800/mo
Transport passIncluded
Restaurant (2 people, mid-range)€90
Coffee€4.00
Gym membership€65/mo
HealthcareUniversal system via CNS, employee contributions ~3.05%
Frugal
€2,400
/month
Moderate
€3,500
/month
Comfortable
€5,000
/month

Budget calculator

Build a detailed monthly budget for Luxembourg City based on your lifestyle.

Build your budget →

Why choose Luxembourg City?

Highest minimum wage in the EU (€2,570/month)

EU financial hub: banking, fund management, fintech

Trilingual (French, German, Luxembourgish) + English widely used

Free public transport nationwide (since 2020)

Impatriate regime (since 2025): 50% exemption on eligible salary up to €400,000/year

47% of residents are foreign nationals, truly international

Quality of life

Overall
8.5
Safety
9
Healthcare
9
Education
8.5
Air Quality
8
Expat Community
9.5
English Proficiency
8

Moving to Luxembourg City : checklist

  1. 1Research visa/work permit (EU citizens: freedom of movement)
  2. 2Calculate net salary with impatriation regime
  3. 3Find accommodation (atHome.lu, immotop.lu)
  4. 4Register with commune within 8 days of arrival
  5. 5Open bank account (BGL BNP Paribas, Spuerkeess)
  6. 6Register with CNS (national health insurance)
  7. 7Join expat communities (InterNations, Luxembourg Expats FB)

Frequently asked questions

What is the cost of living in Luxembourg?+
Luxembourg is expensive but compensated by high salaries. A single person needs €2,400–3,500/month. Rent for a 1-bed in the center averages €2,000. Public transport is free nationwide.
How much tax will I pay in Luxembourg?+
Luxembourg has progressive rates from 0–42%. Since 2025, the impatriate regime exempts 50% of eligible gross salary from income tax (up to €400,000/year). Effective rates typically range 25–35%.
Is Luxembourg good for expats?+
Excellent, 47% of the population is foreign-born, making it the most international country in the EU. English is widely used in business, and the expat community is large and well-organized.
What is the average salary in Luxembourg?+
Average gross salary is around €65,000–75,000/year. In finance and tech, €80,000–120,000 is common. Luxembourg has the highest minimum wage in the EU at €2,570/month.
Do I need to speak Luxembourgish?+
Not for most jobs. French is the most common business language, followed by English and German. Luxembourgish is mostly used informally. Many expats never learn it.

Compare Luxembourg City with

🇱🇺vs🇨🇭
Luxembourg City vs Geneva
+39% cost
🇱🇺vs🇧🇪
Luxembourg City vs Brussels
−18% cost
🇱🇺vs🇳🇱
Luxembourg City vs Amsterdam
−3% cost

Move to Luxembourg City from

🇫🇷→🇱🇺
Paris → Luxembourg City
🇬🇧→🇱🇺
London → Luxembourg City
🇧🇪→🇱🇺
Brussels → Luxembourg City
🇨🇭→🇱🇺
Geneva → Luxembourg City

These figures are indicative and based on public datasets. They are not tax advice. Consult a licensed tax advisor or financial professional before making relocation or employment decisions.

EXPATRIATION.IO

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Explore expatriation.io for the guides, tools and resources to plan your expatriation, all in one place.

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