Is Luxembourg expensive to visit? What it really costs

The short answer is yes, Luxembourg is expensive. The longer one has nuances worth knowing, because the cost is concentrated in two places, beds and meals, while things that eat money in any other capital are free here. I’ll walk you through it with official figures, not forum guesses.

How much pricier than home?

Every year Eurostat publishes price level indices, which compare what the same basket costs in each country against the EU average, set at 100. On the 2024 figures, household consumption in Luxembourg scores 150.7, against 129.1 for the UK and 90.7 for Spain. So even coming from Britain, where prices already sit well above the EU average, you’ll notice the difference.

For the category that matters most to a traveller, restaurants and hotels, Luxembourg scores 123.6. The UK figure for that category didn’t come through in my query, so I won’t compare it directly. Food bought in shops is also above average in Luxembourg, at 124.8. Bear in mind these indices compare price levels between countries, they don’t tell you what a particular dish costs.

What won’t cost you a penny

Here’s the pleasant surprise. Every bus, tram and second-class train, plus the funicular, has been free across the country since March 2020, for tourists as much as locals. Airport to centre, out to Clervaux, down to Esch-sur-Alzette, no ticket needed. In other pricey destinations transport takes a real bite of the budget, and here it vanishes. The fine print is in Luxembourg free public transport.

Walking the old town, taking the lift down to the Grund, strolling the Chemin de la Corniche or wandering the castles at Koerich and Brandenbourg, which are open access, costs nothing either. I’ve listed all of it in free things to do in Luxembourg.

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

Entry fees, cheaper than you’d expect

For a country with such high price levels, entry fees strike me as fair. Vianden Castle costs €13 and Bourscheid, «the largest castle in the country», €7. Larochette is €7 and Beaufort €8. In the capital, the Natur Musée costs €7 and the Mudam €10, both free for under-21s. The priciest things I found were the LCTO’s guided casemate tours, €20 for the Bock and €24 for the Pétrusse, and the Grand Ducal Palace at €18 for adults.

If you’re planning several castles, the LuxembourgPass costs €23 a day and includes Vianden and Larochette free, among 81 attractions. I weigh it up in LuxembourgPass.

Driving brings another cost. Street parking in the capital costs between €0.50 and €2 per hour, by zone colour, on weekdays from 08:00 to 18:00, and the orange zone has a two-hour limit. The zones and car parks are in parking in Luxembourg.

Taxes worth knowing

Luxembourg’s standard VAT rate is 17%, with reduced rates of 14%, 8% and 3%. A moderate VAT rate doesn’t mean low prices, as the Eurostat indices above show.

One cost that’s easy to avoid is the currency one. Faced with a terminal or ATM offering to bill you in sterling instead of euros, I always pick euros, so the conversion is done by my own bank at a rate I already know, rather than at whatever rate the terminal proposes. Check too whether your card adds a foreign transaction fee, because on a trip where most payments go on hotels and meals, a few per cent on every one adds up.

The capital also has a tourist tax. The city’s charges regulation, in its September 2021 version, fixes it at 3% of the pre-VAT room price, and hotels, hostels and guesthouses collect it from anyone not registered as a city resident. I couldn’t confirm it’s unchanged in 2026 or whether other municipalities charge one, so check your booking.

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

How do I budget realistically?

I won’t give you an average hotel rate or meal price, because no official source publishes one and I’m not going to make it up. What I can offer is a method. Sort accommodation first, since it’s the largest cost, and compare the capital with towns that have a direct train, such as Esch-sur-Alzette or Ettelbruck, because getting around won’t cost you anything. Then add entry fees using the prices above and leave a healthy margin for food, which is where Luxembourg pulls furthest ahead.

My specific tips for spending less, from museums that are free on certain evenings to tap water, are in Luxembourg on a budget.

If you would rather have a local show you round, book a guided tour in Luxemburgo 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.