There's no doubt that living in the Grand Duchy's capital comes at a price. The company Mercer, a global leader in human resources consulting, publishes an annual report on the cost of living in more than 200 cities over five continents. In the 25th edition, published in 2019, the Grand Duchy has climbed 13 places up the scale, achieving 84th place worldwide. Hong Kong, Tokyo and Singapore are the places with the highest cost of living for expats.
Quality of life at an affordable price
The Grand Duchy is tantamount to quality of life, so it's not surprising that its capital attracts international businesses. However, this quality of life and the influx of expats has an effect on prices, particularly when it comes to housing.
But the cost of living in Luxembourg City is still lower than its international competitors. For example, according to the 2019 Cost of Living Survey, other cities with a financial marketplace of international standing rank as follows:
- Hong Kong (1)
- Tokyo (2)
- Singapore (3)
- Seoul (4)
- Zurich (5)
- Shanghai (6)
- New York (9)
- London (23)
- Dublin (43)
- Paris (47)
- Amsterdam (58)
- Frankfurt (74)
An eagerly-awaited annual ranking
Mercer's Cost of Living Survey provides the data used for calculating the allowances expats receive from their employers. It uses 200 products and services to estimate the cost of living (housing, transport, food, clothing, leisure activities, etc.). The data is also used by human resources professionals to calculate the cost-of-living bonuses paid to expats.
(article written by the editorial team of the portal luxembourg.lu)