EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-15
Ireland vs Luxembourg: taxes, salary and cost of living
A move between Ireland and Luxembourg is not simply a choice between a cheap and an expensive country; income, rent and taxation pull the result in different directions.
Ireland vs Luxembourg at a glance
| Indicator | Ireland | Luxembourg |
|---|---|---|
| Standard VAT | 23% | 17% |
| Income tax | 20-40% | 0-42% |
| Social contributions | 19.05% | 24.4% |
| Tax burden | 27.5% | 38.4% |
| Average monthly salary | €5,180 | €6,900 |
| Studio rent | €1,500 | €1,650 |
| Monthly food estimate | €400 | €420 |
| Gasoline | 1.72 €/L | 1.52 €/L |
| Electricity | 0.35 €/kWh | 0.21 €/kWh |
How far does the local salary go?
Luxembourg records the higher listed monthly salary. The gap is €1,720, approximately 24.9% relative to the lower figure. Within the numeric EuroCosts sample, Ireland ranks 6 of 27 for salary and Luxembourg ranks 3 of 27. That ranking is useful context, but gross and net labels must be checked in the source record.
What recurring living costs reveal
Ireland has the lower listed studio rent by €150, a 9.1% difference relative to the higher rent. Ireland sits 35 of 37 and Luxembourg 36 of 37 in the available low-to-high rent ranking. Ireland also has the lower food estimate, so the housing result is reinforced by groceries.
After subtracting only the listed rent and food estimates, the simplified remainder is €3,280 in Ireland and €4,830 in Luxembourg. This leaves €1,550 more in Luxembourg, before utilities, transport, healthcare, childcare or personal taxes not already reflected in salary.
Tax profile for employees
Ireland has the lower listed tax burden by 10.9 percentage points. Standard VAT is 23% in Ireland versus 17% in Luxembourg. Allowances, tax brackets and employment status can reverse a headline comparison.
Fuel-price impact
Luxembourg has the lower listed gasoline price by €0.2 per litre. For a driver buying 50 litres a month, that headline difference is about €10 monthly, before insurance, parking and road charges.
The answer depends on your profile
For a remote worker paid from abroad, housing and daily costs may matter more than the local salary ranking; on that narrow view, Ireland deserves closer attention. A locally employed professional should instead begin with salary and payroll definitions.
Final view: Ireland or Luxembourg?
Luxembourg produces the stronger simplified monthly remainder in this dataset, while Ireland leads on listed rent. That split explains why there is no universal winner.
Sources and data references
- PwC standard VAT rates
- PwC personal income tax rates
- PwC corporate income tax rates
- EuroCosts data scope and generation process
Explore Ireland comparisons · Explore Luxembourg comparisons