Have you ever wondered how it would be to live in a country where public transportation is entirely free and health care is covered in most cases by 80%, if not 100%?
Where 70% of the population are foreigners, and most people born here can speak four languages: Luxembourgish, French, German, and English.
Welcome to Luxembourg!
A little green country where most people don’t even know where it is located. Squeezed between big, strong nations like Germany, Belgium, and France, our little European gem.
After five years here, I am prepared to tell you the dirty truth about life in the world’s richest country.
Why Luxembourg is so rich?
Luxembourg is one of the wealthiest countries in the world, and several factors contribute to its economic prosperity:
2. This little country provides advantageous tax policies, such as low corporate taxes and a range of tax incentives for both individuals and businesses. This attracts multinational corporations and high-net-worth individuals to establish their operations and residency in the country.
3. Thirdly, the economy of Luxembourg is diverse and strong in many sectors, including financial services, technology, logistics, steel, and telecommunications.
4. Last but not least, the government is pro-business, and the country provides a stable political climate. This encourages investment and economic growth.
Luxembourg offers a high quality of life
Provides a high quality of life, including a safe environment, excellent healthcare, and a top-notch educational system. This makes it a great spot for expats like me and my friends seeking a new home.
At first, I was only going to stay here for two years before returning to Krakow. But something triggered me to stay there for five years.
Lots of the folks I talked to here felt the same way. Even though he originally intended to stay in Lux for just a few months, my French friend has been here for almost seven years.
The question is, why do we all remain in this verdant nation for so long—and for some, perhaps forever?
The obvious answers are financial security and a life free of chaos.
The pay is excellent, and you meet people from all over the globe. Do you need anything else?
I know—all you need is some nice weather.
This is the key point that makes Luxembourg less appealing than it first appears.
What are the drawbacks of living in Luxembourg?
1. The weather
What we hate the most here is the weather. It is like a nightmare. This entire summer, 2024, the average temperature was only 17 degrees Celsius! Like winter in Portugal.😟 During the year, Luxembourg has so many rainy days that I would say this country is more rainy and grey than the UK.
So be ready before you decide to move here and think twice: is money so important that you are willing to sacrifice it? the nice hot weather you have there and move here? It is quite cold throughout the year; winter usually has some snow, but it is not common to see it every year.
2. The rent prices
You make a decent living wage here, but the rent is sky-high.
The cost of living in Luxembourg is high, so not all employees can afford to make it their permanent home.
The border countries of France, Germany, and Belgium are home to many people who travel an hour or more each way, by car or train, to come here and work for nine hours a day. They are called the cross-borders.
Although the rent is higher, there are perks, such as being able to work from home twice a week and not having to commute more than an hour five times a week. Our monthly rent is 2500 euros, but if we were to rent an apartment in Germany, for instance, it would be closer to 700 euros.
3. Opening hours of grocery stores and restaurants
Just picture this: I just relocated from Krakow, where the supermarkets stay open until 11 p.m. and stores close at 6 or 7 p.m., with a few grocery stores staying open until 8 p.m.
For those who work until 6 p.m. like me, this is a major hassle.
On Sundays, all stores are closed, so we only have Saturday to do some shopping.
4. Competitive labor market
Luxembourgish, French, and German are the three recognized official languages of Luxembourg. Having said that, there are plenty of expats who speak English, so even if you do not know any of these languages, you should still have no trouble adjusting to life here.
Even though English is a great asset, I can assure you that finding work here will be much more challenging if you do not speak French.
I moved here internally within the same company where I was working in Poland. Because it is an American bank, we use English every day, so no need to speak French or German.
However, if you seek to work for a French company, you would need to speak their language. It would benefit you to learn about French culture and adapt to their way of thinking since you will be interacting with it every day.
5. High cost of living
I already summed up the rent above, which is crazy expensive, but services such as hairdressers, mechanics, and dentists are very expensive, so we are avoiding doing them here.
I do my hair only in Poland, as it is much cheaper, or we go to Trier in Germany and use the hairdressers there. For example, a man’s haircut in Luxembourg can be easily 40 euros, while in Germany it is around 20 euros.
If you cook at home and just do groceries, the prices are not that bad. But if you go out to the restaurant or go for a drink, you can easily spend 80 euros for a dinner for two.
The average price is 15 euros for a cocktail, and coffee costs around 5 euros.
Learn more about coffee prices and where the best coffee is in Luxembourg here.
