The cost of living in Luxembourg is relatively costly. The 2023 Mercer Cost of Living Survey ranked the nation’s capital 58th out of 227 cities. Luxembourg is more costly than Stuttgart, Madrid, and Auckland while being much less expensive than Geneva, London, and New York. Despite this, the nation enjoys the highest minimum salary in the EU and a low 16% VAT rate. The majority of foreigners in the nation reside in or close to Luxembourg City, the nation’s capital. It is the political, economic, and cultural center of Luxembourg and the most developed city in the country.
The cost of lodging
The cost of housing in Luxembourg is high, particularly in the city center, and it will be one of an expat’s biggest costs. While individuals who want to remain in the country permanently may profit from purchasing real estate, those who intend to stay there just temporarily might think about renting. Particularly in the city’s capital, renting is exceedingly expensive.
Bills for utilities
An 85 square meter flat in Luxembourg costs roughly €250 per month for electricity, heating, cooling, water, and rubbish. Luxembourg charges €0.20 per kWh for electricity, which is marginally under the EU average of €0.25 per kWh.
Transport expenses
Although transportation expenses in Luxembourg might be high, there are ways for foreigners to save costs. The public transportation system is effective and dependable, and long-term passes are discounted. To save money on transportation, some expats choose to cycle or walk to work.
Luxembourg’s healthcare costs
The quality of healthcare in Luxembourg is quite high, yet costs might be high. Foreigners employed in the country will be entitled to free or heavily discounted public healthcare. An expat’s employer also contributes on their behalf, and mandatory payments to the healthcare system are withheld from their wages. Expats should think about purchasing health insurance to pay for any unforeseen medical costs. As a component of their benefits package, certain businesses could provide health insurance. Private healthcare is an alternative for foreigners who desire more extensive healthcare coverage, but it may be expensive.
Luxembourg’s schooling costs
Although public education is free for all lawful residents, many expatriates choose not to enroll their children in one of these facilities due to the language barrier. Because of this, foreign schools are normally the top choice for expats. The costs might be considerable and the facilities and educational standards are frequently of the highest caliber. Therefore, expats have to make an effort to include a school allowance in their work package.
Food costs
Although dining out and shopping for groceries might be expensive in Luxembourg, there are methods for foreigners to save costs. It may be less expensive to buy food from local markets and prepare meals at home than to go out. Even though certain stores in the country have reduced pricing, foreigners living there should nevertheless plan on paying more for groceries than they would in many other European nations. In a similar vein, dining out is pricey in Luxembourg. There are less expensive eateries, however, even at these places, expats should plan to spend at least EUR 20 each dinner.
Childcare
Finding an economical alternative to care for your children might be difficult given the high cost of living in Luxembourg and the high cost of childcare in most other countries. Families with small children might choose from a daycare center, independent babysitter, au pair, or crèche. Children as young as three months old and as old as four are welcome in a crèche, and parents pay based on their income. To assist with childcare expenses, low-income families may be eligible for subsidies known as cheque-service accueil (CSA). You might employ an au pair in the country if you need a full-time babysitter. You may see the requirements that you and your au pair must fulfill on the Luxembourg public information page. They must be given board and lodging in addition to receiving a fifth of the minimum pay as pocket money. Although a live-in au pair may increase your shopping costs, it may still be less expensive than a private nursery.
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