Luxembourg's currency, and how to pay without surprises

Luxembourg’s currency is the euro, so the basics are quick. What deserves a bit more attention if you’re coming from the UK is how you pay, because that’s where the avoidable costs hide. The good news is that one of the biggest expenses of most city breaks, getting around, costs nothing here at all.

The euro, from the very start

Luxembourg has been in the eurozone since 1 January 1999, as one of its founders. Its coins have their own national side. According to the European Central Bank, they were designed by Yvette Gastauer-Claire in agreement with the Grand Ducal household and the government, and every one carries the profile of Grand Duke Henri, the year of issue and the country’s name in Luxembourgish, «Lëtzebuerg». Henri abdicated in 2025, but that’s how the ECB’s page describes them today. Where that word comes from is covered in Luxembourg name meaning.

Paying by card from the UK

Cards are the simplest way to pay. What they cost you depends on your own bank, not on Luxembourg. The EU has rules that stop banks charging more for a card payment or cash withdrawal in another EU country than at home, and that ban surcharges for using a card, but those protect cards issued in the EU. With a UK card, the foreign transaction fee and cash withdrawal charges are whatever your bank sets, so it’s worth checking before you travel and, if you travel often, using a card without foreign fees.

The one habit I’d insist on is refusing to pay in pounds. Card machines and cash machines abroad often offer to convert the amount into your home currency on the spot. I’d always choose euros and let your own bank do the conversion.

Once your dates are set, check which hotels are still free in Luxembourg before prices climb.

VAT and the hotel tax

Standard VAT in Luxembourg is 17%, with lower rates of 14%, 8% and 3%. The official page I’ve read doesn’t say which goods fall under each, so I won’t guess. As a non-EU visitor you may wonder about tax refunds, but that’s not something the sources I’ve used cover, so check with the shop.

Luxembourg City also has a hotel tax. Under the city’s schedule of charges, in its 2021 version, it amounts to 3% of the room charge before VAT, and the hotel, hostel or guesthouse collects it from guests who aren’t registered residents. I haven’t been able to confirm it in a more recent source, so I’m saying so. My advice is to compare the final booking price with taxes included.

Where your money goes, and where it doesn’t

The biggest saving is transport. Buses, trams, the funicular and second-class trains have been free across the whole country since 1 March 2020. A first-class ticket is €3 for two hours or €6 for a full day, and a first-class or cross-border ticket bought on the train carries a CFL surcharge of €1 to €9, cash only. Parking in the capital ranges from €0.50 to €2 an hour by zone, paid through the Indigo neo app. My tips for using it are in Luxembourg free public transport.

For museums and castles, the LuxembourgPass costs €23 for one person for one day, according to prices published in September 2026. It’s digital, activates when first scanned, and can be used within 365 days of the travel date you choose, with the days of a two- or three-day pass not needing to be consecutive. If you’re wondering whether all this makes Luxembourg a pricey trip, I look at that in is Luxembourg expensive. On tipping I haven’t found an official source, so no percentages from me; what can be said is in tipping in Luxembourg.

Once your dates are set, check which hotels are still free in Luxembourg before prices climb.

Precautions I’d take

gov.uk’s travel advice warns about pickpockets on buses and at stations, particularly the main station, and about thefts in hotel lobbies around Findel. It advises keeping your passport and cards in separate places and not getting distracted at cash machines. Cash of €10,000 or more, including travellers’ cheques, has to be declared on arrival or you risk having it seized on departure, and that applies to transit too. And note that on top of the public holidays, banks also stay shut on Good Friday and on Christmas Eve afternoon, as I explain in Luxembourg public holidays.

If you would rather have a local show you round, book a guided tour in Luxembourg and choose by the reviews.

A car frees you from timetables: search car hire in Luxembourg on DiscoverCars and compare companies.

So you do not pay over the odds, look at trains, coaches and flights to Luxembourg on Omio and pick the one that suits you.