Authored by the expert who managed and guided the team behind the Luxembourg Property Pack
Everything you need to know before buying real estate is included in our Luxembourg Property Pack
Luxembourg stands as one of Europe's most expensive countries to live in, but residents benefit from exceptionally high salaries and world-class public services.
The monthly cost of living for a single person ranges from €2,700 to €3,300, while families typically need between €5,500 and €7,800 depending on their lifestyle choices and location within the country.
If you want to go deeper, you can check our pack of documents related to the real estate market in Luxembourg, based on reliable facts and data, not opinions or rumors.
As of September 2025, Luxembourg requires substantial monthly budgets due to high housing costs, but offers unique advantages like free public transport and high earning potential.
The biggest expense categories are housing (€1,200-€2,200 for one-bedroom apartments) and groceries (€270-€1,000 monthly depending on household size).
| Expense Category | Single Person (€/month) | Family of Four (€/month) |
|---|---|---|
| Housing (1-bedroom city) | 1,400-2,200 | N/A |
| Housing (family home) | N/A | 2,500-4,000 |
| Utilities | 210-310 | 300-450 |
| Groceries | 270-570 | 900-1,000 |
| Internet + Mobile | 55-85 | 100-150 |
| Health Insurance (additional) | 80-120 | 164-300 |
| Public Transport | 0 (Free) | 0 (Free) |
| Total Monthly Budget | 2,700-3,300 | 5,500-7,800 |
How much does it cost to rent a one-bedroom apartment in Luxembourg City versus outside the city?
Renting a one-bedroom apartment in Luxembourg City costs between €1,400 and €2,200 per month, with an average of €1,675.
Outside Luxembourg City, in suburbs or smaller towns like Esch-sur-Alzette or Differdange, one-bedroom apartments cost €1,200 to €1,800 monthly, averaging €1,440.
The city center commands a premium due to proximity to financial institutions, government offices, and Luxembourg's main business district. Areas like Kirchberg and Bonnevoie within the city limits typically fall on the higher end of the price range.
As of September 2025, the rental market remains tight with limited inventory, particularly for quality apartments in desirable neighborhoods.
It's something we develop in our Luxembourg property pack.
What's the average monthly cost of utilities like electricity, heating, cooling, water, and garbage collection?
Monthly utilities for a typical 85-90m² apartment in Luxembourg cost between €210 and €310, with most residents paying around €250.
This includes electricity, heating, cooling, water, and garbage collection services combined into one comprehensive cost estimate.
Heating costs vary significantly by season, with winter months pushing utility bills toward the upper range due to Luxembourg's continental climate. Summer cooling costs remain moderate compared to southern European countries.
Energy efficiency of the building plays a major role in final costs, with newer constructions typically resulting in lower monthly utility expenses.
How much should I expect to pay for high-speed internet and a mobile phone plan in Luxembourg?
High-speed home internet with 1 Gbit/s speeds costs €40 to €55 per month, plus an additional €5 to €7 monthly if you need to rent a modem.
Premium fiber options can reach up to €69.99 for the fastest speeds and additional services.
Mobile phone plans range from €15 to €30 monthly for 15-25 GB of data, while unlimited data packages cost €40 to €90 per month. Standard plans with at least 10 GB and EU roaming typically cost around €25.
Most providers offer bundle deals combining internet and mobile services, which can reduce total monthly telecommunications costs by €10 to €15.
What's the typical price of groceries per month for a single person or a family?
| Household Size | Monthly Grocery Cost (€) | Shopping Strategy |
|---|---|---|
| Single Person | 270-570 (avg: 570) | Mix of discount and regular stores |
| Couple | 565 | Bulk buying for staples |
| Family of Four | 900-1,000 | Strategic shopping across multiple stores |
| Budget-Conscious Single | 270-350 | Discount stores, cooking at home |
| Premium Shopping Family | 1,200-1,500 | Organic, imported products |
| Students/Young Professionals | 200-300 | Basic essentials, minimal dining |
| Expat Family (international foods) | 1,100-1,400 | Specialty stores for home country products |
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How expensive is eating out at restaurants, from casual meals to mid-range dinners for two?
Casual, inexpensive meals at local restaurants cost €10 to €30 per person, depending on the type of cuisine and location.
Mid-range dinner for two people ranges from €65 to €120, with most couples spending around €80 to €100 for a complete meal with drinks.
Fast food combo meals cost €12 to €15, while a coffee at a café typically costs €3 to €5. Luxembourg's restaurant scene reflects its international character, with French, German, and Italian influences commanding premium prices.
Business lunch menus in the financial district often cost €25 to €40 per person, making them a popular option for working professionals.
How much does public transport cost monthly, and is it true that buses and trains are free?
Public transport in Luxembourg is completely free for all residents and visitors since 2020, covering buses, trains, and trams in second-class.
This makes Luxembourg the first country in the world to offer free nationwide public transportation, eliminating monthly transport costs entirely for most residents.
First-class rail travel still requires payment, but the free second-class service covers all practical daily transportation needs within Luxembourg and even some cross-border routes.
Taxi services start at €5 with costs of €4.80 to €8 per mile and €40 per hour wait time for those needing private transport options.
If I drive, what are the costs for fuel, car insurance, parking, and road tax in Luxembourg?
Gasoline costs €1.40 to €1.85 per liter (€5.50 to €6.40 per gallon) as of September 2025.
Car insurance ranges from €400 to €1,300 annually, which translates to €60 to €110 monthly for a typical vehicle, depending on your driving profile and coverage level.
Parking in Luxembourg City center can cost up to €150 monthly for a reserved spot, while residential areas offer more affordable options. Road tax ranges from €30 to €300 yearly based on vehicle emissions and weight.
Additional costs include periodic vehicle inspections and minimal vignette fees for certain routes, but overall driving costs remain manageable compared to other Western European countries.
It's something we develop in our Luxembourg property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Luxembourg versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the average childcare costs, like daycare or after-school programs, in Luxembourg?
Private daycare and preschool costs range from €500 to €1,800 per month per child, with an average of €1,230.
International schools for primary education cost €6,000 to €21,000 annually, depending on the institution and curriculum offered.
Public childcare options exist but often have waiting lists, making private alternatives necessary for many working families. After-school programs typically cost €200 to €500 monthly per child.
Many employers offer childcare subsidies or corporate daycare facilities, which can significantly reduce these costs for eligible families.
How much is health insurance per month, and what does it usually cover in Luxembourg?
Mandatory statutory health coverage is funded through payroll and social contributions, providing comprehensive coverage for general care and hospitalization.
Additional private health insurance starts at €80 monthly for basic supplementary coverage, while typical households pay an extra €164 to €180 monthly for more comprehensive private coverage.
The statutory system covers most medical needs including doctor visits, hospital stays, and prescription medications with minimal co-payments. Private insurance adds benefits like private hospital rooms, dental care, and alternative medicine treatments.
Luxembourg's healthcare system ranks among Europe's best, making the insurance costs worthwhile for comprehensive medical protection.
What are the typical monthly costs for a fitness club membership or other leisure activities?
- Fitness club membership: €25 to €90 monthly with an average of €48 for standard gym access
- Cinema tickets: €12 to €18 per person for evening showings
- Tennis court rental: €15 to €30 per hour at public and private facilities
- Swimming pool access: €30 to €60 monthly for public pool memberships
- Golf club membership: €100 to €300 monthly for full access at premium courses
- Theater and concert tickets: €25 to €80 depending on venue and performance
- Museum annual passes: €20 to €50 for unlimited access to cultural sites
How much should I budget for taxes and mandatory social security contributions if I work in Luxembourg?
Personal income tax follows a progressive structure from 0% to 42%, plus communal tax of 6% to 9% of the basic tax amount and a solidarity surcharge of 7% to 9%.
Social security contributions total around 25% combined rates for employer and employee portions, automatically deducted from gross salary.
The average net salary in Luxembourg is €4,728 monthly after all deductions, reflecting the high gross wages that compensate for the significant tax burden.
Tax residents benefit from various deductions for housing costs, professional expenses, and family situations that can reduce the effective tax rate considerably.
It's something we develop in our Luxembourg property pack.
What's the realistic monthly budget range for a comfortable lifestyle in Luxembourg, depending on whether I'm single, a couple, or a family?
A single person living in Luxembourg City needs €2,700 to €3,300 monthly for a comfortable lifestyle, with €3,000 to €3,300 being the sweet spot for most professionals.
Couples typically require €4,200 to €6,200 monthly, with €5,200 to €5,800 providing a comfortable standard of living in the city or suburbs.
Families with two children need €5,500 to €9,000 monthly, with €6,200 to €7,800 representing a realistic comfortable budget for most family situations.
These budgets account for housing, utilities, food, transportation, healthcare, childcare, and reasonable leisure activities while maintaining a good quality of life in one of Europe's wealthiest countries.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Luxembourg's high cost of living is offset by exceptional salaries, world-class public services, and unique benefits like free public transportation.
Housing represents the largest expense category, but the country's strong economy and job market make it an attractive destination for international professionals and families seeking quality of life.
Sources
- Expatica - Cost of Living in Luxembourg
- Numbeo - Luxembourg Cost of Living
- Just Arrived - Cost of Life in Luxembourg
- Expatistan - Utilities Prices Luxembourg
- Switchr - Internet Offers Luxembourg
- Orange Luxembourg - Internet Offers
- Orange Luxembourg - Mobile Offers
- Switchr - Mobile Plans Luxembourg
- Hikers Bay - Luxembourg Prices
- RTL Today - Free Public Transport