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Luxembourg is renowned as one of the richest countries in Europe, offering a high quality of life and excellent public facilities. However, living there can be quite costly due to its high living expenses. From housing to food and daily necessities, the prices are relatively steep. 

Curious about the actual cost of living in Luxembourg and how to save money while staying there? In this article, we’ll delve into the details for workers, families, and students, along with tips on how to live more frugally in this small but prosperous nation.

What is the Cost of Living in Luxembourg?

The cost of living in Luxembourg varies depending on lifestyle, location, and individual needs. It includes expenses for accommodation, food, transportation, insurance, and other essentials. Workers, students, and families have different requirements, and this article outlines the costs based on these categories.

Cost of Living in Luxembourg for Workers

For workers, the cost of living in Luxembourg is heavily influenced by accommodation. Renting a one-bedroom apartment in the city center ranges from €1,500 to €2,500 per month, while in the suburbs, prices fall between €1,200 and €2,000 per month.

Public transportation, free since 2020, offers added convenience, while dining out at a restaurant costs an average of €15 to €25 per meal. Weekly grocery shopping for one person typically costs around €80 to €120.

Cost of Living in Luxembourg for Families

For families, the cost of living in Luxembourg tends to be higher due to the need for larger accommodations and children's education costs. Renting a three-bedroom apartment in the city center can cost between €3,000 and €5,000 per month.

Private or international schools require significant annual fees. Although public transportation is free, family grocery expenses can reach €500 to €700 per month. Additionally, health insurance costs should be factored in, with fees varying based on the chosen package.

Cost of Living in Luxembourg for Students

Students in Luxembourg face relatively high living costs, although they can take advantage of free public transportation. Dormitory accommodation ranges from €500 to €1,000 per month, while private apartment rentals are considerably more expensive.

For meals, students typically spend around €200 to €400 per month if they cook at home more often than dining out. Health insurance is often covered by international student programs or can be purchased independently.

One-Day Cost of Living in Luxembourg

If you are staying in Luxembourg for just one day, the daily cost depends on your lifestyle. Eating at a restaurant may cost €15-€25 per meal, while buying food at a supermarket is significantly cheaper. Public transportation is free, and staying at a budget hotel costs between €100 and €150 per night.

Daily Expenses in Luxembourg

Planning to live or visit Luxembourg? Here's a detailed overview of daily expenses you should consider in this small but affluent country.

1. Accommodation

Hostels: Ideal for backpackers, with average prices around €33 per night.

Hotels: From €66 to €219 per night, depending on the luxury level.

Apartments:

1. One-bedroom (city center): €1,500–€2,000
2. One-bedroom (suburbs): €1,300–€1,800
3. Three-bedroom (city center): €1,900–€4,000
4. Three-bedroom (suburbs): €1,600–€3,500

2. Food Costs

Dining Out: Meals at casual restaurants range from €10–€25, while a full three-course dinner for two at a fine dining restaurant costs €60–€110.

Fast Food: Around €10 for a McMeal and €3 for a cheeseburger.

Groceries:

1. Milk (1 liter): €1.30
2. Bread (500g): €2.90
3. Eggs (12): €3.70
4. Local cheese (1kg): 17 EUR
5. Water (1.5 liter bottle): 0.54 EUR
6. A bottle of wine: 8.00 EUR
7. Domestic beer (0.5 liter bottle): 1.70 EUR
8. Marlboro cigarettes (pack): 5.50 EUR
9. Chicken breast (1kg): €12
10. Apples (1kg): 2.60 EUR
11. Potatoes (1kg): 1.70 EUR
12. Rice (1kg): €2.30

3. Transportation

Public transportation has been free since March 2020, a significant initiative to reduce traffic, improve air quality, and promote sustainable commuting.

4. Utilities

In addition to accommodation and food costs, utility costs are also important to consider. Here are the average monthly utility costs in Luxembourg:

1. Electricity, heating, water, and waste for an 85m² apartment: €238 per month.
2. Mobile prepaid rates: €0.06 per minute.
3. Internet (60 Mbps, unlimited): €51 per month.

With this information, you can be better prepared in planning your budget when living or visiting Luxembourg. Hopefully, this data helps you understand the cost of living in this small but beautiful country!

Money-Saving Tips in Luxembourg

1. Use Public Transport: Free public transport saves a lot of money; use it as much as possible.
2. Cook at Home: Cooking is far cheaper than dining out, and buying groceries locally helps save even more.
3. Live in Suburbs: Rent is significantly cheaper in suburban areas while still offering good transport access.
4. Take Advantage of Student Discounts: Many places offer discounts for students on entertainment and shopping.
5. Buy Second-Hand Items:
   Expat communities often sell or give away furniture, electronics, or clothing at low prices.
6. Attend Free Events: Luxembourg frequently hosts free events and festivals.
7. Use free Wi-Fi in public places, there are many free Wi-Fi spots in Luxembourg, so you don't need to use your quota often.

Cheapest Cities in Luxembourg

While Luxembourg is a small country, some areas are more affordable than the city center. Cities like Esch-sur-Alzette, Differdange, and Dudelange offer lower rents and quieter surroundings.

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