Cost of Living & Salary Comparison 2026
Yes, Luxembourg City is 22% cheaper than London based on our cost of living index. Luxembourg City has a COLI of 68.4, while London has a COLI of 87.5. 22% cheaper
Overall, Luxembourg City is approximately 22% cheaper than London based on our cost of living index. London has a COLI of 87.5 (ranked #6 of 182 cities), while Luxembourg City has a COLI of 68.4 (ranked #26).
When it comes to housing, one-bedroom apartment rent in London averages $2,500/month compared to $1,800/month in Luxembourg City. That makes Luxembourg City approximately 28% cheaper for rent alone.
London has lower total deductions (26.6%) compared to Luxembourg City (29.6%), meaning you keep more of your gross salary in London. When evaluating a relocation, remember that total deductions directly impact your take-home pay and should be weighed alongside cost of living differences.
Full breakdown of mandatory payroll deductions for a mid-range salary as a local employee in each city.
Rates shown for local employees. Expat deductions may differ — use the main converter for personalized calculations.
If you earn £56,476 in London, you would need approximately €49,711 in Luxembourg City to maintain the same purchasing power. That is 22% less thanks to lower cost of living.
Estimated mid-level annual salaries in local currency, adjusted for each city's cost of living:
| Job Title | London (GBP) | Luxembourg City (EUR) |
|---|---|---|
| Doctor (General) | £118,599 | €104,392 |
| Software Engineer | £56,005 | €49,296 |
| Product Manager | £65,889 | €57,996 |
| Lawyer | £65,889 | €57,996 |
| Data Scientist | £62,594 | €55,096 |
| Marketing Manager | £47,440 | €41,757 |
| Teacher | £31,627 | €27,838 |
| Nurse | £38,215 | €33,638 |
Salary estimates are adjusted by each city's COLI relative to the New York baseline. Actual salaries vary by company, experience, and industry.
| Neighborhood | Multiplier |
|---|---|
| Mayfair | 1.45x (+45%) |
| Chelsea | 1.38x (+38%) |
| Kensington | 1.35x (+35%) |
| Marylebone | 1.32x (+32%) |
| Hampstead | 1.30x (+30%) |
| Neighborhood | Multiplier |
|---|---|
| Ville Haute | 1.30x (+30%) |
| Kirchberg | 1.22x (+22%) |
| Belair | 1.18x (+18%) |
| Limpertsberg | 1.15x (+15%) |
| Grund | 1.08x (+8%) |
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Open Salary ConverterLondon is more expensive overall. London has a COLI of 87.5 while Luxembourg City has a COLI of 68.4, making Luxembourg City approximately 22% cheaper.
To maintain the same standard of living as £56,476 in London, you would need approximately €49,711 in Luxembourg City.
Average one-bedroom rent in London is $2,500/month compared to $1,800/month in Luxembourg City. Luxembourg City has lower rent by approximately 28%.
London has lower total deductions (26.6%) compared to Luxembourg City (29.6%), meaning you keep more of your gross salary in London.
Cost of living indices (COLI) are benchmarked to New York City = 100 and derived from Numbeo and Expatistan crowd-sourced price surveys, cross-referenced with national statistics agencies. Rent data from Numbeo Property Prices.
Salary ranges are compiled from the U.S. Bureau of Labor Statistics (OES), Glassdoor, and PayScale. Tax rates are approximate effective rates for mid-range earners based on OECD Taxing Wages and national tax authorities. Exchange rates from the European Central Bank. Neighborhood multipliers are estimated from local rental indices and property data.
Last updated: 2026-02-28. Data is refreshed periodically. All figures are estimates for informational purposes only.