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Add as a preferred source on GoogleCost of living in Luxembourg 2026: building your relocation budget
Budget · Preparing your move
The cost of living in Luxembourg is decided mostly by one item: housing. Salaries are high, but an expatriate's budget depends on household composition, place of residence and place of work. This guide gives the method for building a reliable budget without imposing an average figure that would not fit your situation.
Why we do not publish an "average" budget
An average rent or basket hides considerable gaps between Luxembourg City, its surroundings and the north or east of the country. For an immigration project, a wrong figure is worse than a method. We therefore point to official statistics (STATEC, Observatoire de l'Habitat) for up-to-date values and show how to put them together.
Items to price
- Housing: rent, service charges, deposit, possible agency fees. See expat housing.
- Energy, water, internet, mobile: quotes from providers for the target address.
- Food and groceries: estimate from your real habits.
- Transport: public transport is free in Luxembourg; the real cost lies mostly in a personal vehicle, insurance and fuel.
- Health insurance: social security affiliation is tied to employment; plan for costs that are not reimbursed.
- Children: childcare, school, activities; costs vary greatly between public, international and private schools.
- Taxes: net income depends on family situation; see the salary page for the gross/net difference.
- Relocation formalities: visa, residence permit, translations, see relocation.
Three profiles to reason with
| Profile | Dominant item | Watch point |
|---|---|---|
| Single employee | Rent for a studio or one-bedroom | Rent weighs on one income; flat-sharing changes the equation |
| Couple, one income | Larger home, a single salary | Can the spouse work? See family reunification |
| Family with children | Housing, childcare and schooling | The choice of school drives the place of residence |
Comparing salary and budget
The most useful comparison is your offer's net pay against your full monthly budget, rent included. A salary meeting the legal minimum is not necessarily enough to live on with a family. For a non-EU employee, salary is also a condition of the Blue Card or the work permit.
Sources for up-to-date figures
- STATEC, the national statistics institute, for prices and the index.
- Observatoire de l'Habitat, for rents and property prices by municipality.
- Guichet.lu, for benefits and procedures.
Is my project feasible with my salary and family?
A feasibility check (route, salary, budget), with no commitment.
General information, not legal advice. immigrate.lu is an immigration advisory firm published by Financial Services Luxembourg SARL-S. Reserved legal acts are performed by Maître Cora Maglo, avocate à la Cour (CERNO Law Firm), Luxembourg Bar.
FAQ
What is the main expense in Luxembourg?+
Housing is the dominant item of an expatriate's budget, and its amount varies strongly between Luxembourg City, the surrounding area and the rest of the country.
Is public transport paid in Luxembourg?+
Public transport is free in Luxembourg. The real cost lies mostly in a personal vehicle, its insurance and fuel.
Why not give an average budget?+
An average hides large gaps by municipality and household; we give a method and point to STATEC and the Observatoire de l'Habitat for current values.
Is a minimum-wage salary enough for a family?+
Not necessarily: the legal minimum is a pay floor, not a living budget, and household net pay must be compared with rent and childcare or school costs.