Cost of Living in Luxembourg (2025): A Real Expat’s Budget Breakdown

Thinking about moving to Luxembourg but worried about the cost of living? 

The fact that Luxembourg is the wealthiest country in the world might put expats on edge if they are careful with their money. 

However, with proper preparation, it is feasible to live comfortably, even save money, and travel extensively with 40 days of vacation per year.

In this blog post, I’ll share my personal experience as an expat living in Luxembourg since February 2020. 

My goal is to help you make the most of your move by providing detailed insights into monthly expenses, saving tips, and advice on living in Luxembourg.

My Monthly Cost of Living in Luxembourg as an Expat

Here’s a breakdown of my monthly expenses as an expat living frugally in Luxembourg:

1. Housing

Housing is the biggest expense in Luxembourg, and renting alone can be hard. 

Now I am sharing an apartment with my partner, which makes it a bit cheaper than renting alone. 

But before we decided to live together, I used to pay just 740 euros a month for a little bedroom in a shared apartment with two other roommates. 

It was a very good deal and super cheap as for Luxembourg City, and now, it is hard to find a room this cheap.

For more affordable housing options, you might want to think about moving to Germany, Belgium, or France. 

However, you would be sacrificing a significant portion of your day simply getting to and from work each day. 

Okay, let us get down to brass tacks since I am describing the cost of living in Luxembourg, not the crossborder country:

• Our rent: €2,500/month for a 70m2 apartment. My share is €1,250/month. We live in a modern area of Gasperich in a new building built in 2023. 
• For Singles: Renting a one-bedroom apartment or studio can cost €1,800–€2,000/month.
• Cost-Saving Tip:
  • Consider sharing an apartment. Renting a room is much cheaper, usually around €700–€1,200/month, and offers an opportunity to connect with other expats.

2. Utilities & Internet

When compared to rent, the cost of utilities in Luxembourg is quite reasonable.

• Electricity: €49/month (my partner covers internet and I pay for electricity).
• Internet: My partner pays €50/month. Data plan from Orange. He pays less because his phone and internet come together in a package.
• Our monthly rent of €300 is already included in the price we pay to the landlord of €2500. It covers all other bills, including hot and cold water, trash, etc. 
• A savings tip: combine your internet and phone service into one package.

3. Groceries

• On groceries, I spend about €300–€400/month.
• How much you will spend depends on your shopping habits and the grocery stores you will visit. Supermarkets like Auchan and Cactus can be expensive, but local markets often have better prices.
• In Luxembourg, we also have lunch vouchers that your employer will give you to use for monthly grocery shopping; these vouchers are typically €150.
• Tip: Buy groceries in stores like Colruyt, Lidl, or Aldi, where prices are lower.
• Stay away from imported goods; they are much pricier. 

4. Transportation

Luxembourg offers free public transportation across the country—an incredible perk for expats.

• Monthly Transport Cost: €0
• During the warmer months, I ride my own bicycle, which I purchased for €150 on Facebook Marketplace. And during the winter, I use our free buses and trams.
• Another option is to use Vel’OH! city bikes, which cost only €18 per year. Just download their app and subscribe for an annual plan. Inexpensive, and the bikes are electric as well. The city is filled with bike stations.
• Uber and taxi: Luxembourg taxis are way too expensive for me to recommend. Uber has been in the city since June 2024, and you can find good deals sometimes. It cost about €17 to €20.
• Tip: Use the free buses and trains for commutes and explore the country.

5. Gym & Fitness

• Gym membership: €25/month. 

I used to pay €95/month for over a year to go to Factory4, the greatest gym in Luxembourg (and the place where I met my boyfriend). 🙂

That fitness center has a lot of group classes and three saunas, but no swimming pool. 

Then they raised my membership fee to €102, so I canceled and went with a less expensive alternative. 

At the moment, I am paying only €25/month to join the Basic Fit, which is the most affordable gym in Luxembourg. 

• Search for sales in January or September; many fitness centers provide affordable rates.

6. Phone Plan

• My phone plan costs me about €75 per month. The reason I am paying so much into my Orange plan is that I leased a brand new iPhone 14 Pro Max in December 2022 and am now paying it off over the course of two years. But if you are taking only the mobile plan without a phone, you can get a fantastic deal for just €22.
• Recommendation: If you are looking for more affordable plans, consider providers such as Orange or Post Luxembourg.

7. Healthcare

Luxembourg’s healthcare system is a huge benefit for expats.

• 80–90% of medical costs are reimbursed, so you will only have to pay 10% to 20% of the total for most visits. Plus, if you have additional life insurance, such as Foyer, you can still get your money back for the remaining amount, which means your doctor’s visit will be reimbursed in full. 
• Example: A €100 doctor visit will only cost you €10–€20 out-of-pocket. The remaining €80 is covered by the National Health Service (CNS). During your visit to the doctor, you can pay with your credit card. After that, you can send the invoice to CNS through regular mail (just put the CNS address on the envelope and drop it off at any of the street’s yellow post boxes for free).
• Tip: Always carry your European Health Insurance Card or proof of health insurance.

8. Personal Care (Hair, Beauty, etc.)

• Personal care services in Luxembourg are expensive.
  • Women’s haircut and color: €200
  • Men’s haircut: €35-50 
  • Facial: €170

I do my hair like twice per year only in Poland when I visit my family.

I went to a hair salon once in those five years in Luxembourg, spent €180, and ended up crying because I was unhappy with the results. 

The hairdresser spoke only French, so we could not communicate well. After that, I only got my hair done in Poland. 

Actually, I did it again in Trier, Germany, thinking it would be cheaper there. But no, I paid 200 euros.

• Cost-Saving Tip: Plan your beauty treatments for when you go abroad, or if you come from a cheaper country like me, Poland, plan them for when you visit your family. 

How Much Money Do You Need to Live Comfortably in Luxembourg?

This depends on your spending and lifestyle choices. 

I am able to live comfortably in Luxembourg and do a lot of traveling in a year because I am very frugal and I budget.

It is estimated that in order to live comfortably in Luxembourg, one would need approximately €1,500 to €2,500 per month.

Even though my monthly expenses are high, I am able to save about €2,000/month in a good month and €1,500 in my regular month by living frugally.

How can I afford to save so much money every month while still paying €1,250 in rent? Simply by adopting a minimalistic and frugal lifestyle. 

Read more about: 10 Frugal Living Tips to Save Money in an Expensive Country

Some money-saving advice from me:

• Limiting dining out and shopping for clothes.
• Splitting costs with partner.
• Avoiding expensive treatments locally.
• Benefiting from Luxembourg’s free healthcare and transportation.

My Net Monthly Income: €4,000
My Average Monthly Expenses: €1,600–€2,000
My Monthly Savings: €1,300-€2,000 

Is Luxembourg Too Expensive for Young Expats?

Yes and no. 🙂

Honestly, it all depends on your salary and how much your rent is.

The rest of the money and what you will do with it is all up to you and your lifestyle—how frugal with money are you, are you budgeting and controlling your expenses, etc.

Even though Luxembourg is more expensive than Krakow, where I used to live, I found that in Luxembourg I can allow myself for more. 

Take my move here as an example. With just one paycheck, I managed to buy a nice laptop for €1150, pay rent, and even put some money away. 

When I was in Poland, I could not afford to travel nearly as often or buy as many expensive things as I can here. 

Plus, I managed to save enough money for a down payment on an apartment in Krakow after only one year in Luxembourg!

From my perspective, Luxembourg offers a more comfortable way of life, which is why many people choose to stay for an extended period of time after experiencing it. 

Despite the high cost of living, young expats will not find Luxembourg to be too expensive due to the good salaries.

Tips for Living in Luxembourg on a Budget

1. Share Housing Costs: While you search for an apartment, I also suggest spending the first month on Airbnb. Being here, available for viewings, and determining if the area is a good fit will be much easier.

If you are thinking about living alone in Luxembourg, you should know that it is common for apartments to be rented without furniture. Therefore, you will need to pay a lot up front to buy the bed, sofa, table, and other necessary things. 

And if you want to use an agency like atHome.lu to find a rental, be ready to pay an agency fee—usually over €1,000.

Plus, you will need to pay a security deposit to the landlord—often three times the monthly rent—which could add up to six grand.

2. Leverage Free Transportation: Save money on commuting with Luxembourg’s free transport system.
3. Shop Smart: Avoid imported groceries and look for deals in local markets. Shop in cheaper markets like Lidl, Aldi, or Colruyt. The Cactus Marche is the most expensive, followed by Monoprix and Auchan.
4. Save on Personal Care: Plan beauty treatments during trips abroad or in your home country if it is cheaper than in Luxembourg.
5. Tap Into Expat Communities: Join local Facebook groups to make friends. There are many events that they organise in expat groups on Facebook. You just have to join the group and show up at the meeting. Luxembourg is full of expats from around the world and super multi-culti. There are many young people who moved here alone and are looking for friends or partners, so this makes it simple to find your companion. 

Final Thoughts on Cost of Living in Luxembourg Per Month

Living in Luxembourg as an expat doesn’t have to break the bank. 

While costs can be high, strategic budgeting and a minimalist lifestyle can help you save money while enjoying everything this beautiful country has to offer.

Ready to Plan Your Move?

If you’re thinking of moving to Luxembourg and want to learn more about housing, budgeting, or life as an expat, check out these resources:

• Luxembourg Housing Rentals on Athome.lu
• Join the Expat Community on Facebook: “Expats in Luxembourg.”
• Explore Luxembourg’s Free Public Transport System

Have questions or need advice about living in Luxembourg? Leave a comment below, and I’ll be happy to help! 🙂