Renting in Luxembourg means competing in one of Europe's most expensive, supply-starved markets. This guide walks you through the main portals (atHome.lu, Immotop.lu, Wortimmo), agencies and expat networks, realistic rents in Luxembourg City versus the rest of the country, the agency fee (now split 50/50), the dossier landlords expect, the lease and the two-month deposit cap, plus the cross-border option.
Luxembourg ranks among Europe's most expensive countries, driven overwhelmingly by housing. A one-bedroom flat in Luxembourg City rents for roughly €1,966 a month (Numbeo, May 2026). A single person can expect about €2,700-3,300 a month including rent; a family needs more. Free public transport, high salaries and an indexed minimum wage of €2,703.74 gross partly offset the cost. This explainer breaks down rent, groceries, transport, childcare and health.
Half of Luxembourg's full-time employees earn under €58,126 gross a year (STATEC). The average — €75,919 — is pulled up by high finance salaries. After ~12% social security and progressive income tax (0–42% plus a surcharge), most workers take home roughly 65–80% of their gross, depending on income and tax class.
Salaries and pensions in Luxembourg rise 2.5% from 1 June 2026 as a new index tranche kicks in. The same year brings higher pension contributions (24% to 25.5%), a carbon tax up to €50 a tonne, a permanent Bëllegen Akt home-buyer credit, and the first moves toward a single tax class in 2028. Here is the full picture for your wallet.
Luxembourg annual inflation rose to 3.1% in April 2026, pushed by fuel and heating oil. STATEC said 2.46 percentage points had accumulated toward the next 2.5% wage indexation tranche.
From 1 January 2026, Luxembourg raises its carbon price to EUR 45 per tonne of CO2, increases the CO2 tax credit to EUR 216, and lifts tobacco excise duties by about EUR 0.30 per cigarette pack and EUR 0.40 per 50g rolling tobacco pack.