Luxembourg
Luxembourg is a small, landlocked European country nestled between Belgium, France, and Germany. Despite its modest size, Luxembourg boasts significant economic and political importance within the European Union. The country is known for its highly d...
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With a safety index of 67/100, Luxembourg offers good safety conditions for expats and their families.
Luxembourg, as a Schengen Area member, allows visa-free entry for citizens of approximately 60 countries, including the United States, United Kingdom, Canada, and Australia, for tourism, business, or short visits up to 90 days within any 180-day period. A valid passport is required, recommended to be valid for at least 6 months from entry (minimum 3 months beyond planned departure from Schengen). No visa on arrival is available; visa-exempt travelers must now obtain an ETIAS authorization online before travel.[1][3][4][7] Since...
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63% above EU avg
Near EU average
38% above EU avg
149% above EU avg
Baselines based on EU averages. Source: Numbeo indices.
Capital
Luxembourg
Timezone
UTC+01:00
Area
2,586 km²
Population
632,275
Luxembourg shows a purchasing power index of 175/100, indicating excellent economic conditions for expats.
GDP
$85.51B
HDI
0.9
Quality of Life
92/100
+49 vs NYC
Purchasing Power
73/100
+31 vs NYC
Understanding the economic landscape is essential for evaluating living costs and opportunities in Luxembourg. This comprehensive overview covers key financial indicators including cost of living, housing markets, income levels, and fiscal policies that shape daily life and long-term financial planning.
Cost of Living Index
CPI: 78.5 (NYC=100 baseline), indicating expensive living costs. Groceries index: 78.5, restaurant prices: 86.0.
Housing Market
Property price to income ratio: 9.2 years. Rent index: 46.3 offers relative affordability amid stabilizing house prices.
Average Income Levels
Purchasing power index: 169.2 reflects excellent buying power. GDP per capita: $137,782 supports high incomes.
Tax System
Progressive personal income tax up to 47%, corporate tax recently cut. Standard VAT: 17%, social security contributions around 25-30% split between employer/employee.
Business Environment
Top-ranked for ease of doing business, strong financial sector and startup ecosystem. GDP growth projected at 1-2% in 2025-2026 with recovering investment.
Social Security
Universal healthcare, comprehensive pensions, and unemployment benefits exceeding EU averages. HDI 0.93 and quality of life index 212.9 underscore strong safety net.
Luxembourg features a temperate oceanic climate (Cfb in Köppen-Geiger classification) characterized by mild summers, cool winters, and consistent year-round precipitation influenced by Atlantic westerlies. The small country (2,586 km²) has relatively homogeneous conditions but subtle regional variations between the cooler, higher northern Oesling and milder southern Gutland.
2 distinct climate regions — see full guide for details
Read full guideLife Expectancy
83.0
Population
632,275
Religions
Ethnic Composition
Currently under research
Research in Progress
We're currently analyzing expat perspectives for Luxembourg. Check back soon for insights from real experiences!
We're gradually rolling out this feature and continuously improving the insights. The data is based on real expat discussions and will become more comprehensive over time.
Luxembourg is a parliamentary constitutional monarchy with a unicameral legislature of 60 deputies. The current government is a center-right coalition between the Christian Social People's Party (CSV) and the Democratic Party (DP), led by Prime Minister Luc Frieden since November 2023. The country maintains a stable democratic system with mandatory voting and is classified as a full democracy.
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Data Source: Safety, crime, and quality metrics are sourced from Numbeo, a crowd-sourced global database of reported data.
All scores are relative comparisons on a 0-100 scale, where 50 = global average. Higher scores mean better than average, lower scores mean worse than average.



