Luxembourg City, Luxembourg
The wealthy capital of the Grand Duchy, home to EU institutions, a thriving financial sector, and a UNESCO-listed old town perched on dramatic cliffs.
Overview
Luxembourg City is a city in Luxembourg Canton with a population of 132,780. The wealthy capital of the Grand Duchy, home to EU institutions, a thriving financial sector, and a UNESCO-listed old town perched on dramatic cliffs. Housing is notably more expensive than the national average. The overall cost of living is above the national average. Gardening thrives here — the 5b growing zone supports Cool — many vegetables, some fruit trees. A large share of residents hold a bachelor’s degree or higher. Reported crime rates are relatively low.
Last updated: October 04, 2026
Very High vs Luxembourg Avg (100)
Very Expensive
Household income
Job market health
Luxembourg City vs Luxembourg Average
Taxes
- State Income Tax: 42.0%
- Sales Tax: 17.0%
Economy & Jobs
- Median Income: €65,000
- Unemployment: 5.5%
- Population: 132,780
Climate
- Sunny Days: 165/year
- Summer High: 75°F
- Winter Low: 30°F
- Farming Zone: USDA Zone 5b
Internet Speed
- Average 200 Mbps: 150 Mbps
- Coworking Spaces: 15+ locations
Housing
- Median Home: €850,000
- 1BR Rent: €1800/mo
Cost of Living
Luxembourg City's cost of living index is 130 (Luxembourg average = 100).
| Category | Luxembourg City | National Average | Difference |
|---|---|---|---|
| Overall | 130 | 100 | +30.0% |
| Housing | 160 | 100 | +60.0% |
Data source: STATEC / Numbeo, 2026
Housing Market
| Metric | Value |
|---|---|
| Median Home Price | €850,000 |
| Median Rent (1BR) | €1800/mo |
| Median Rent (2BR) | €2,250/mo |
| Price per Sq Ft | €566 |
Data source: AtHome.lu / Immobilière, 2026
True Cost of Home Ownership
Utilities
Estimated monthly utility costs for a typical household in Luxembourg City:
| Utility | Estimated Monthly Cost | Notes |
|---|---|---|
| Electricity | €80 | |
| Heating & Cooling | €98 | Estimated based on local climate. |
| Cooling (AC) | N/A | Estimated based on local climate and electricity rates |
| Water | €40 | Includes sewer |
| Internet (100+ Mbps) | €50 | Broadband average |
| Garbage / Trash | Included in taxes | Municipal service (covered by property taxes) |
| Total Utilities | €268 | Monthly estimate (including heating & cooling) |
Data sources: ILR, Enovos, Creos 2025
Remote Work Score
Luxembourg City scores —/100 for remote work readiness:
Climate
Luxembourg City has a varied climate with distinct seasons.
| Month | Avg High | Avg Low | Rainfall |
|---|---|---|---|
| January | 50°F | 30°F | 2.5" |
| April | 60°F | 45°F | 2.8" |
| July | 75°F | 50°F | 1.5" |
| October | 55°F | 48°F | 2.2" |
Cool — many vegetables, some fruit trees
Natural Hazards
Luxembourg City faces the following natural hazards:
Moderate seismic activity with occasional earthquakes.
River flooding.
Forest fires.
Hilly terrain with landslides.
Summer heat.
Low drought risk.
Based on historical records and geographic risk assessment.
Taxes
- State Income Tax: 42%
- Sales Tax: 17%
- Property Tax: ~0.15% of assessed value
Economy & Jobs
Major industries include technology, healthcare, education, and manufacturing. The unemployment rate is 5.5%.
Crime & Safety
Crime rates in Luxembourg City per 100,000 residents:
City-level crime data is not available for this location. The figure shown is the national average, which may differ significantly from actual conditions in this city.
Data source: Eurostat
Schools & Education
Academic Schedule
Standard academic calendar.
Demographics
The population of Luxembourg City is diverse. The figures below show the ethnic, educational, and religious composition of the local population.
Ethnicity
Education
Religion
Demographic composition is derived from the Eurostat Urban Audit (city-level). Ethnicity figures are based on nationality / country of birth, as European statistics do not collect race or ethnicity data. Education figures reflect the highest level of education attained by the population aged 25-64.
Data source: Eurostat Urban Audit (2009)
Important Disclaimer: All data on this page is for informational purposes only and does not constitute financial, legal, tax, or real estate advice. URCity and Northshore Press are not financial advisors, tax professionals, or real estate agents. Always consult qualified professionals before making relocation or financial decisions.
Frequently Asked Questions
What is the cost of living in Luxembourg City, Luxembourg?
The cost of living index in Luxembourg City is 130, which is Higher the Luxembourg national average of 100.
How much does it cost to buy a home in Luxembourg City?
The median home price in Luxembourg City is €850,000. The housing index is 160.
What is the average rent for a 1-bedroom apartment?
The average rent for a 1-bedroom apartment in Luxembourg City is approximately €1800/mo.
Does Luxembourg City, LU have income tax?
Luxembourg City is in LU, which has an income tax rate of 42%.
What is the climate like in Luxembourg City?
Luxembourg City enjoys approximately 165 sunny days per year. Summer highs reach around 75°F, while winter lows can drop to around 30°F.
Data Sources
- Cost of Living: STATEC / Numbeo, 2026
- Housing Data: AtHome.lu / Immobilière, 2026
- Income & Employment: STATEC Labour Force Survey, 2024
- Utilities ILR, Enovos, Creos 2025
Data last updated: October 21, 2026. Data may not reflect current market conditions. Always verify with local sources before making relocation decisions.