Cost Comparison 2025

LondonvsLuxembourg

United Kingdom
Luxembourg

Overall

💰

-10.5%

London is 10.5%cheaper

Rent

🏠

-11.8%

Housing is 11.8% lower

Dining

🍽️

-5.3%

Restaurants 5.3% cheaper

Groceries

🛒

+2.5%

Food shopping 2.5% more

Comparing the cost of living between London, United Kingdom and Luxembourg, Luxembourg reveals significant insights for anyone considering relocation or travel in 2025. Our comprehensive analysis shows that London is more affordable than Luxembourg by approximately 10.5%. This comparison covers essential living expenses including housing, food, transportation, and utilities, providing you with a complete picture of what to expect financially in each city.

Key Cost Differences

Housing costs in London are higher than in Luxembourg by 13%. A one-bedroom apartment in London's city center costs around £2,500, while the same in Luxembourg is approximately €2,000.

Dining out in London costs about the same compared to Luxembourg. An inexpensive restaurant meal costs £18 in London versus €20 in Luxembourg.

Public transportation in London is more expensive, with monthly passes at £180 compared to €0 in Luxembourg.

Purchasing power in Luxembourg is notably stronger, meaning residents can afford more goods and services with their local salaries compared to London.

Monthly Budget Breakdown

When breaking down monthly expenses, a single person in London can expect to spend approximately £716 per month (excluding rent), while in Luxembourg, the same lifestyle would cost around €600. For families, these figures increase significantly, with a family of four requiring about £2,505 monthly in London versus €2,101 in Luxembourg. These estimates include groceries, dining out, transportation, utilities, and entertainment, providing a realistic picture of day-to-day living costs in each city.

Detailed Cost Comparison

Item
London, United Kingdom
Luxembourg, Luxembourg

🏠 Housing Costs (Monthly Rent)

1BR City Center
£2,500
€2,000
1BR Outside Center
£1,800
€1,600
3BR City Center
£5,500
€3,800

🍽️ Food & Dining

Meal, Inexpensive Restaurant
£18
€20
Meal for 2, Mid-range Restaurant
£80
€90
Cappuccino
£4
€4
Domestic Beer (0.5L)
£6
€5

🛒 Groceries

Milk (1L)
£1
€1
Bread (500g)
£2
€2
Eggs (12)
£3
€4
Cheese (1kg)
£10
€18

🚌 Transportation

One-way Ticket
£3
€0
Monthly Pass
£180
€0
Taxi Start
£4
€5
Gasoline (1L)
£2
€2

💡 Utilities & Internet

Basic Utilities (85m²)
£200
€200
Internet (60 Mbps)
£35
€50
Mobile Minute
£0
€0

Tips for Moving Between Cities

For those considering a move from Luxembourg to London, the cost savings can be substantial, particularly in housing and daily expenses. However, it's important to factor in salary differences and job opportunities. Conversely, moving from London to Luxembourg requires careful financial planning. Consider negotiating salary adjustments that reflect the higher cost of living, and research neighborhoods outside the city center for more affordable housing options while maintaining reasonable commute times.

Quality of Life Indices

London

Cost of Living Index95
Rent Index85
Purchasing Power Index90

Luxembourg

Cost of Living Index85
Rent Index75
Purchasing Power Index120

Frequently Asked Questions

Is London more expensive than Luxembourg?

No, London is approximately 10.5% cheaper than Luxembourg. You'll find significant savings in housing, food, and transportation costs.

How much salary do I need in London compared to Luxembourg?

To maintain the same standard of living, you would need approximately 90% of your Luxembourg salary when living in London. For example, if you earn $50,000 in Luxembourg, you'd need about $45,238 in London for a comparable lifestyle.

What are the biggest cost differences between London and Luxembourg?

The most significant cost difference is in housing. Rent prices differ by approximately 13%, making it a major factor in your budget planning. Transportation and utilities show notable variations between the two cities.

Which city is better for expats and digital nomads?

Luxembourg offers better purchasing power, making it more attractive for those earning in strong currencies. However, London provides lower living costs, which benefits budget-conscious travelers. Consider London if you prioritize cultural experiences, or Luxembourg for better value.

What's a reasonable monthly budget for London vs Luxembourg?

In London, a single person needs approximately £2,516 per month (including rent), while a family of four requires about £6,005. In Luxembourg, these figures are €2,200 for singles and €4,901 for families. These estimates include housing, food, transportation, and basic entertainment.

The cost of living comparison between London and Luxembourg in 2025 shows notable differences across various expense categories. Whether you're planning a relocation for work, considering retirement options, or simply curious about living costs, understanding these differences is crucial for making informed financial decisions.

Need to calculate salary equivalence?

Find out how much you need to earn in Luxembourg to maintain your lifestyle from London

Calculate Salary Equivalence

Last updated: 2025-01-15 • Data sourced from multiple providers