From salaries and taxes to housing and transportation, starting a career in a new country is invariably associated with a series of administrative procedures that take some getting used to. To help you make the transition to working in Luxembourg as smooth as possible, we've put together some essential tips and key information to get you off on the right foot.
1. How do I find a job and what do I earn?
How easy is it to find a job in Luxembourg?
Data from ADEM (Agence pour le développement de l'emploi) are optimistic. In July 2023, the unemployment rate in Luxembourg stood at a modest 5.2%, while the number of jobseekers had risen by 13% compared to July 2022.
According to information provided by this agency, the tertiary sector predominates, representing around 80% of jobs, mainly in banking and finance.
ADEM not only compiles statistics, it also centralizes a wide range of job opportunities. Two other widely used job search platforms are jobs.lu and jobfinder.lu.
How high are salaries in Luxembourg?
Salary levels in Luxembourg vary according to a number of criteria. The minimum gross social wage is €2,570.93/month for unskilled workers and €3,085.11/month for skilled workers.
However, remuneration also depends on the sector of activity. Here are some examples of average annual salaries in 2019 in Luxembourg:
Finance sector: €99,912
Service sector: €64,679
Industry sector: €53,427
Automotive sector: €46,939
Construction sector: €46,939
Taken together, these figures give a gross average annual salary in the Grand Duchy of €64,932, the highest in the European Union.
2. What are the tax returns and tax deduction options?
The online tax service allows you to calculate your tax rate based on your income and marital status (single, married or unmarried). Although tax declarations are not generally compulsory, they are essential if you wish to take advantage of tax benefits.
Many expenses are deductible, including :
Travel expenses up to €2,574 per year.
Childcare costs up to €450 per month.
Household help and mortgage interest, within certain limits.
Retirement savings plans, children's savings plans and provident savings plans.
3. How do I find a home in Luxembourg?
Finding a home that meets all your requirements can be a major challenge. The property market is extremely competitive, which means that patience is often required, unless luck is on your side.
Options for buying and renting houses and apartments
The two main real estate websites, athome.lu and immotop.lu, are excellent resources for exploring properties available to rent or buy. Here are some indications of property prices in Luxembourg:
The average purchase price in August 2023 was €8,457/m², down 3.52% on August 2022.
For rentals, the average cost is around €25.37/m² per month, representing an increase of 5.75% compared to August 2022. Agency fees are generally equivalent to one month's rent, and landlords may require up to 3 months' rent as a rental guarantee. [Source : https://www.immotop.lu/prix-immobilier/]
To help you find your ideal home and settle in more easily, there are relocation agencies. Their basic service is to search for properties matching your criteria, but they can also take care of administrative tasks on your behalf, such as finding schools for your children or opening a bank account.
Coliving: a practical temporary option
While you're waiting to find your own permanent home, you may want to consider coliving, a hybrid accommodation solution that falls somewhere between a shared apartment and a hotel. In this concept, you share common areas with other tenants, while having your own room with private bathroom. A rental agency takes care of cleaning once a week, and the average cost is around €1,000 per month. Coliving is particularly popular with expatriates, as it allows you to create a social network as soon as you arrive, while offering you a convenient temporary housing solution.
4. Essential insurance
In Luxembourg, third-party liability insurance for land motor vehicles is the only compulsory insurance for private individuals, whether for cars or motorcycles. However, we strongly recommend that you take out other types of insurance to guarantee your financial security.
Home insurance is essential, whether you're an owner, co-owner, tenant or free occupant. It protects you in the event of losses such as fire or water damage, and also covers your liability to the landlord, if applicable.
What's more, around 75% of Luxembourgers opt for supplementary health insurance, offering more extensive coverage and more generous reimbursements than the Caisse Nationale de Santé (CNS).
Foyer offers comprehensive and flexible insurance solutions, including mobilé car insurance and mozaik home insurance. Our Medicis complementary health insurance offers high-quality benefits, covering areas such as hospitalization, dental care, visual aids and other outpatient medical interventions.
5. Public transport and cars: your choice in Luxembourg
Luxembourg offers remarkable flexibility when it comes to getting around, and owning a car is by no means a requirement. In fact, the Grand Duchy is the first country in the world to introduce free public transport, guaranteeing efficient and punctual services.
If you arrived in Luxembourg with a car registered in your country of origin, you have 6 months to register it in Luxembourg. The registration procedure is carried out online, provided that your vehicle has passed a technical inspection. You will also need to obtain a €50 "droit de chancellerie" tax stamp, among other formalities.
6. Is learning Luxembourgish required for work?
In Luxembourg, Lëtzebuergesch is one of the three official languages, alongside French and German. According to a 2018 Eurostat study, more than half the population is fluent in three foreign languages.
The importance of Lëtzebuergësch in the workplace varies from sector to sector. It's not necessary in every case, but mastering the local language can greatly facilitate your integration into the country.
Many communes offer free courses, and many companies are subsidized to offer Luxembourgish courses to their employees. So, zéckt net! (Don't hesitate!)
For answers to other questions, consult our newcomer's guide.