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Luxembourg – Cost of Living

Luxembourg is a small country located in the heart of Europe known for its picturesque landscapes, diverse culture, and a booming economy. In this article, we will explore the cost of living in Luxembourg, including its currency, comparisons to the UK and USA, breakdown of costs, and common forms of payment.

Local Currency in Luxembourg

The local currency in Luxembourg is the Euro (EUR). One euro is divided into 100 cents. Coins are available in denominations of 1, 2, 5, 10, 20, and 50 cents, as well as 1 and 2 euro coins. Banknotes are available in denominations of 5, 10, 20, 50, 100, 200, and 500 euros.

Cost of Living in Luxembourg Compared to the UK and USA

The cost of living in Luxembourg is generally considered to be higher than that of the UK and the USA. According to Numbeo, a website that compares the cost of living in different countries, the cost of living index in Luxembourg is 87.18, while the UK is 69.08 and the USA is 76.86. This means that on average, it is more expensive to live in Luxembourg than in the UK or USA.

Breakdown of Costs in Luxembourg

The cost of living in Luxembourg can vary depending on the location and size of the household. Here is a breakdown of some of the typical costs for singles, couples, and families of four in Luxembourg:


Housing costs in Luxembourg can be relatively high, especially in the capital city. A one-bedroom apartment in the city center can cost around 1,200-1,800 EUR per month, while a three-bedroom apartment can cost around 2,500-4,000 EUR per month.

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Luxembourg offers a variety of international cuisine, and eating out can be relatively expensive. A meal at a local restaurant can cost around 20-50 EUR per person, while grocery shopping can also be expensive, with a loaf of bread costing around 1-2 EUR and a liter of milk costing around 0.80-1 EUR.


The cost of utilities in Luxembourg varies depending on the size of the household and the location. On average, electricity, water, and gas bills for a family of four can add up to around 200-300 EUR per month. Internet and mobile phone plans are also relatively expensive, with a typical plan costing around 30-50 EUR per month.


Luxembourg offers a variety of leisure activities, from visiting museums to exploring the beautiful countryside. Many activities in Luxembourg can be relatively expensive, such as visiting the Luxembourg American Cemetery and Memorial or enjoying a day at an amusement park. Paid activities can cost between 10-30 EUR per person.


Public transportation in Luxembourg is widely available and relatively affordable, with a monthly pass costing around 50-60 EUR. Taxis and ride-sharing services are also available but can be relatively expensive, with a typical 10-kilometer ride costing around 15-25 EUR.


The cost of clothing in Luxembourg varies depending on the brand and quality. High-end designer clothing can be expensive, with a designer dress costing around 200-500 EUR or more. Affordable clothing options can be found at local stores, with t-shirts costing around 10-30 EUR and jeans costing around 50-100 EUR.

Household Goods

Household goods such as furniture, appliances, and electronics can be relatively expensive in Luxembourg, especially if purchased new. Second-hand options are available and can often be more affordable, with items such as a used refrigerator costing around 100-200 EUR and a used television costing around 50-150 EUR.

Common Forms of Payment in Luxembourg

Cash is widely accepted in Luxembourg, but electronic payment methods are becoming increasingly popular. Credit and debit cards are widely accepted at most businesses, and ATMs are widely available throughout the country. Contactless payment methods are also becoming more popular, especially for smaller purchases. It is important to note that some businesses may not accept foreign credit or debit cards, so it is always a good idea to carry some cash.

In conclusion, the cost of living in Luxembourg can be relatively high, especially in areas such as housing, food, and leisure. However, the country offers a high standard of living, with a booming economy and a variety of international amenities. Affordable options can be found, especially with second-hand goods, and electronic payment methods are becoming more popular. Overall, Luxembourg offers a unique and enjoyable lifestyle for those willing to invest in the cost of living.