EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-15
Luxembourg vs Spain: taxes, salary and cost of living
A move between Luxembourg and Spain is not simply a choice between a cheap and an expensive country; income, rent and taxation pull the result in different directions.
Luxembourg vs Spain at a glance
| Indicator | Luxembourg | Spain |
|---|---|---|
| Standard VAT | 17% | 21% |
| Income tax | 0-42% | 19-47% |
| Social contributions | 24.4% | 36.25% |
| Tax burden | 38.4% | 39.5% |
| Average monthly salary | €6,900 | €2,642 |
| Studio rent | €1,650 | €950 |
| Monthly food estimate | €420 | €320 |
| Gasoline | 1.52 €/L | 1.57 €/L |
| Electricity | 0.21 €/kWh | 0.24 €/kWh |
Salary advantage and purchasing power
Luxembourg records the higher listed monthly salary. The gap is €4,258, approximately 161.2% relative to the lower figure. Within the numeric EuroCosts sample, Luxembourg ranks 3 of 27 for salary and Spain ranks 13 of 27. Currency conversion and salary methodology can materially change a relocation budget.
Housing pressure and everyday spending
Spain has the lower listed studio rent by €700, a 73.7% difference relative to the higher rent. Luxembourg sits 36 of 37 and Spain 28 of 37 in the available low-to-high rent ranking. Spain 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 €4,830 in Luxembourg and €1,372 in Spain. This leaves €3,458 more in Luxembourg, before utilities, transport, healthcare, childcare or personal taxes not already reflected in salary.
VAT and personal tax context
Luxembourg has the lower listed tax burden by 1.1 percentage points. Standard VAT is 17% in Luxembourg versus 21% in Spain. Neither measure is a substitute for an individual payroll simulation.
Driving and mobility costs
Luxembourg has the lower listed gasoline price by €0.05 per litre. For a driver buying 50 litres a month, that headline difference is about €2.5 monthly, before insurance, parking and road charges.
Choosing by relocation scenario
For a remote worker paid from abroad, housing and daily costs may matter more than the local salary ranking; on that narrow view, Spain deserves closer attention. A locally employed professional should instead begin with salary and payroll definitions.
Where the comparison lands
Luxembourg produces the stronger simplified monthly remainder in this dataset, while Spain leads on listed rent. Your income source determines which advantage matters more.
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 Luxembourg comparisons · Explore Spain comparisons