Luxembourg ranks first for quality of life in 2026

Published on 13 July 2026 by the Deutsche Bank Research Institute, the study Mapping the World's Prices 2026 benchmarks liveability, salaries and everyday costs across 69 global cities using crowdsourced data. Luxembourg City got the top spot for the second consecutive year.

Luxembourg: The world's best place to live

The quality-of-life index combines eight dimensions, including purchasing power, safety, healthcare, cost of living, property-price-to-income ratio, commute time, pollution and climate. Luxembourg leads the global ranking for the second consecutive year, ahead of Copenhagen, Amsterdam, Vienna and Munich.

Major global hubs and European capital cities rank significantly lower due to expensive housing, long commutes and high pollution:

• Madrid ranks 18^th
• Berlin ranks 28^th
• Brussels ranks 38^th
• Rome ranks 41^st
• Paris ranks 43^rd
• London ranks 47th

Luxembourg's top position is driven by shorter commute times, lower pollution levels, higher safety rankings and strong purchasing power.

High salaries and strong disposable income in Luxembourg

On net monthly salary after taxes, Luxembourg ranks sixth globally with an average net monthly salary of $5,196 (€4,780).

When salaries are adjusted for the cost of renting a three-bedroom apartment in the city centre, Luxembourg ranks in the global top five for disposable income. This makes it one of only five European cities — alongside Copenhagen, Frankfurt, Geneva and Zurich — to place in the top 10 for both quality of life and disposable income.

Even with the pressures of the European housing squeeze, Luxembourg's high salaries ensure that professionals retain significant purchasing power after paying rent. If you are planning your move, our relocation guide provides practical steps on housing, registration and settling in.

Free public transport and reasonable utilities

While housing costs require careful planning, Luxembourg offsets these expenses with highly competitive public services and everyday costs:

• Luxembourg's public transport remains entirely free, making it the most cost-effective system in the world.
• Basic monthly utilities (electricity, heating, cooling, water and refuse collection) for an 85 m2 apartment average $297 (€273), ranking 13th globally.

This is significantly lower than in other major European cities, such as Berlin $410 or London $383, which have been heavily impacted by the energy crisis.

These advantages, combined with a safe and clean environment, make the Grand Duchy an exceptionally attractive destination for international talent.

Ready to relocate to Luxembourg?

Luxembourg offers a unique balance of high earnings, excellent public services and an outstanding living environment.

To find out more about work permits, job opportunities and living in the Grand Duchy, contact our Talent Desk for personalised support.