Luxembourg Economy & Cost of Living 2025: Detailed Insights on Income, Expenses, and Growth

Table of Contents

Luxembourg has a population of 660,000 in 2025, with Luxembourg City as its capital. The country’s official languages are Luxembourgish, French, and German, and its currency is the Euro (EUR). The estimated GDP for 2025 is $96.993 billion, with an inflation rate of 2.1%. The average monthly income is approximately €7,200.

Income levels have steadily increased from €4,800 in 2010 to €7,200 in 2025. The most significant growth periods occurred between 2014 and 2018, with annual increases reaching up to 4.9%. In recent years, income growth has slowed, with a modest 0.7% increase in both 2024 and 2025.

Living costs have risen significantly from €3,600 in 2010 to €5,900 in 2025. The most substantial spikes were between 2014 and 2015, with an increase of 7.0%. Growth rates have stabilized in recent years, with a 0.9% rise in 2025.

Housing remains the largest expense, accounting for 42% of total living costs at €2,500 per month in 2025. Food expenses make up 20% at €1,200, while transportation costs stand at €400, or 7% of the budget. Other notable expenses include healthcare (€500), entertainment (€450), and utilities (€200). Miscellaneous expenses amount to €650 per month, making up 12% of total spending.

A historical breakdown shows that housing costs have increased from €1,800 in 2010 to €2,500 in 2025, with the most substantial growth occurring in earlier years. Meanwhile, food costs have risen from €850 in 2010 to €1,200 in 2025, with occasional spikes, particularly in 2016 when they jumped by 5.0%.

While income growth has generally outpaced inflation, Luxembourg’s living expenses have also risen considerably, particularly in housing and food. The steady increase in costs reflects the country’s high standard of living and strong economic performance.

Let’s take an in-depth look at Luxembourg’s economy, income levels, and living costs from 2010 to 2025. Get detailed insights on rent, food, and other expenses.

Country Overview Table

AspectDetails
CapitalLuxembourg City
Population660,000 (2025)
CurrencyEuro (EUR)
Official LanguageLuxembourgish, French, German
GDP (2025)⤤$96.993 billion
Inflation Rate (2025)2.1%
Average Monthly Income€7,200

Living Cost Per Month (Per Person) Breakdown (2025)

Expense CategoryCost (EUR)Percentage (%)
Housing2,50042%
Food1,20020%
Transportation4007%
Utilities2003.5%
Healthcare5008%
Entertainment4507.5%
Miscellaneous65012%
Total5,900100%

Income Per Month (Per Person) Table (2010-2025)

YearIncome (EUR)Growth (%)
20104,800
20114,9503.1%
20125,1003.0%
20135,2502.9%
20145,4503.8%
20155,7004.6%
20165,9003.5%
20176,1003.4%
20186,4004.9%
20196,6003.1%
20206,8003.0%
20216,9001.5%
20227,0001.4%
20237,1001.4%
20247,1500.7%
20257,2000.7%

Living Cost Per Month (2010-2025) (Per Person)

YearLiving Cost (EUR)Growth (%)
20103,600
20113,7504.2%
20123,9004%
20134,0503.8%
20144,3006.2%
20154,6007.0%
20164,8004.3%
20175,0004.2%
20185,2505%
20195,4002.9%
20205,5001.9%
20215,6001.8%
20225,7001.8%
20235,7500.9%
20245,8501.7%
20255,9000.9%

Room Cost Per Month (2010-2025) (Per Person)

YearRoom Cost (EUR)Growth (%)
20101,800
20111,8502.8%
20121,9002.7%
20131,9502.6%
20142,0002.5%
20152,0502.5%
20162,1002.4%
20172,1502.4%
20182,2002.3%
20192,2502.3%
20202,3002.2%
20212,3502.2%
20222,4002.1%
20232,4502.1%
20242,5002%
20252,5000%

Food Cost Per Month (2010-2025) (Per Person)

YearFood Cost (EUR)Growth (%)
2010850
20118803.5%
20129103.4%
20139504.4%
20149803.2%
20151,0002.0%
20161,0505.0%
20171,0802.9%
20181,1001.9%
20191,1302.7%
20201,1501.8%
20211,1701.7%
20221,1800.9%
20231,1900.8%
20241,1950.4%
20251,2000.4%

Conclusion

Luxembourg, one of the world’s wealthiest nations, continues to experience stable economic growth. Despite high living costs, strong wages and a high standard of living make it an attractive location for professionals and expatriates.

Sources:
OECD Economic Surveys
Statec Luxembourg
World Bank Data

Leave a Comment

Your email address will not be published. Required fields are marked *