Quality of life of Luxembourg residents
Overall, the standard of living in Luxembourg is high. More than 400 Luxembourg families are classified as “UHNWI” (ultra high net worth individuals), with a fortune of more than 30 million dollars. Luxembourg’s GDP per capita appears to be the highest in the world with 117,500 dollars per capita in 2020 according to the World Bank. The latest IMF figures even predict a GDP per capita of 131,300 dollars for Luxembourg, well ahead of Ireland with 102,390 dollars and Switzerland with 93,250 dollars in 2021.
In addition, it is estimated that in 2020 more than 17% of the population is affected by poverty in the country. The poverty line in the Grand Duchy is set at less than 1,804 euros per month.
Salaries in Luxembourg are higher than the European average, and more particularly than the other components of the Grande Région. Nevertheless, the real cost of living in the Grand Duchy of Luxembourg must be put into perspective.
Housing prices are comparable to those in London and Paris. In some areas of Luxembourg City, prices per square meter reach 15,000 euros or more. Food and clothing costs are also higher than in the surrounding countries.
On the other hand, some products are cheaper, such as alcohol, tobacco, fuel and, more recently, vehicles. The Value Added Tax is 17%.