City guide
🇱🇺 Living in Luxembourg City
Europe's wealthiest capital: high salaries, trilingual culture, and the impatriation tax regime
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) | €1,700/mo |
| Rent (1-bed, suburb) | €1,300/mo |
| Groceries (single) | €350/mo |
| Groceries (family) | €800/mo |
| Transport pass | Included |
| Restaurant (2 people, mid-range) | €70 |
| Coffee | €3.50 |
| Gym membership | €45/mo |
| Healthcare | Universal system via CNS, employee contributions ~3.05% |
Frugal
€2,200
/month
Moderate
€3,200
/month
Comfortable
€4,500
/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)
Impatriation regime: 30% tax-free allowance for qualified expats
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
- 1Research visa/work permit (EU citizens: freedom of movement)
- 2Calculate net salary with impatriation regime
- 3Find accommodation (atHome.lu, immotop.lu)
- 4Register with commune within 8 days of arrival
- 5Open bank account (BGL BNP Paribas, Spuerkeess)
- 6Register with CNS (national health insurance)
- 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 €2,200–3,200/month. Rent for a 1-bed in the center averages €1,700. Public transport is free nationwide.
How much tax will I pay in Luxembourg?+
Luxembourg has progressive rates from 0–42%. With the impatriation regime, qualifying expats can receive up to 30% of their gross salary tax-free (max €50,000/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.
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