EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-16
Luxembourg vs Sweden: taxes, salary and cost of living
Luxembourg and Sweden present two different cost profiles: the first question is whether the salary gap compensates for housing and daily expenses.
Luxembourg vs Sweden at a glance
| Indicator | Luxembourg | Sweden |
|---|---|---|
| Standard VAT | 17% | 25% |
| Income tax | 0-42% | 29-55% |
| Social contributions | 24.4% | 38.42% |
| Tax burden | 38.4% | 42.6% |
| Average monthly salary | €6,900 | €3,750 |
| Studio rent | €1,650 | €900 |
| Monthly food estimate | €420 | €360 |
| Gasoline | 1.52 €/L | 1.55 €/L |
| Electricity | 0.21 €/kWh | 0.22 €/kWh |
Income comparison in context
Luxembourg records the higher listed monthly salary. The gap is €3,150, approximately 84.0% relative to the lower figure. Within the numeric EuroCosts sample, Luxembourg ranks 3 of 27 for salary and Sweden ranks 11 of 27. The nominal advantage should be tested against local housing before it is treated as additional purchasing power.
Rent, food and the monthly budget
Sweden has the lower listed studio rent by €750, a 83.3% difference relative to the higher rent. Luxembourg sits 36 of 37 and Sweden 27 of 37 in the available low-to-high rent ranking. Sweden 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 €2,490 in Sweden. This leaves €2,340 more in Luxembourg, before utilities, transport, healthcare, childcare or personal taxes not already reflected in salary.
Headline taxation: what differs
Luxembourg has the lower listed tax burden by 4.2 percentage points. Standard VAT is 17% in Luxembourg versus 25% in Sweden. Effective taxation depends on income level and household circumstances.
A practical transport check
Luxembourg has the lower listed gasoline price by €0.03 per litre. For a driver buying 50 litres a month, that headline difference is about €1.5 monthly, before insurance, parking and road charges.
Who may prefer each country?
For Luxembourg and Sweden, short stays are influenced heavily by rent and restaurant prices; permanent relocation adds payroll, healthcare and administrative costs. These figures work best as a shortlist, not a final decision model.
The most useful conclusion
Luxembourg produces the stronger simplified monthly remainder in this dataset, while Sweden leads on listed rent. The trade-off is more informative than a blanket cheapest-country label.
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 Sweden comparisons