Moving to Iceland from Luxembourg

moving to

What to Expect

A comprehensive look at what changes when you move from Luxembourg to Iceland — from daily expenses to quality of life.

If you moved from Luxembourg to Iceland, you would find that Iceland is 24.2% more expensive than Luxembourg overall. A €65,700 salary in Luxembourg would need to be roughly ISK10,923,016 in Iceland to maintain the same lifestyle, and you’d need to navigate life in Icelandic. Expect a noticeable climate shift — Reykjavik averages 45°F vs 56°F in Luxembourg, making it significantly cooler.

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How Far Will Your Money Go?

How your spending power changes when you relocate from Luxembourg to Iceland.

What does your salary buy?

€65,700 ISK10,923,016

To maintain the same standard of living in Iceland

Calculate with your salary →

The biggest cost differences at a glance

Restaurants

pay 11.6% more

Groceries

pay 11.5% more

Transportation

pay 15.2% more

Housing

pay 2.4% less

Childcare

pay 16.8% more

Entertainment and Sports

pay 67.3% more

See full cost of living breakdown
Exchange rate: 1 EUR = 143.42 ISK (July 2026)

Data: MyLifeElsewhere's crowdsourced cost of living database, with prices submitted and updated by users worldwide. Exchange rates are refreshed regularly from public sources.

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Who Else Is Making This Move?

Real numbers on people moving from Luxembourg to Iceland, and how the trend has changed.

Moved in 2023
4 ↓ 43% vs 2022

people moved from Luxembourg to Iceland · OECD (latest data available)

Who's moving to Iceland?

Top countries of origin for Iceland's foreign-born residents.

Foreign-born population · UN DESA (2020)

Key Indicator Comparison

How Luxembourg and Iceland stack up on safety, healthcare, jobs, and infrastructure.

Is it safe?

Homicide rate United Nations SDG Indicators, 2022

per 100,000 people per year

LU
1.5
IS
1.1
Feel safe walking at night United Nations SDG Indicators, 2022

of residents who feel safe walking alone at night

LU
79%
IS
91%

Iceland performs significantly better than Luxembourg across all safety metrics.

How's the healthcare?

Healthcare spending per person World Bank, 2024

annual government + private spending per person

LU
$8,808
IS
$6,927
Doctors per 10,000 people United Nations SDG Indicators, 2022

affects wait times and access to care

LU
29.9
IS
45.2

Iceland generally does better on health & wellbeing, though Luxembourg leads in suicide rate.

What about the environment?

Air pollution deaths United Nations SDG Indicators, 2019

deaths attributable to air pollution per 100k people

LU
13.0
IS
8.0
CO₂ emissions per capita World Bank, 2024

tonnes of CO₂ emitted per person per year

LU
10.6t
IS
8.5t

Iceland performs significantly better than Luxembourg across all environment metrics.

Will I have good infrastructure?

Broadband per 100 people United Nations SDG Indicators, 2022

fixed broadband subscriptions — key for remote work

LU
38.7
IS
38.2
Water stress level United Nations SDG Indicators, 2021

higher means greater strain on freshwater supply

LU
4.0%
IS
0.4%

Iceland generally does better on infrastructure, though Luxembourg leads in broadband per 100 people.

What are the job prospects?

Unemployment rate The World Factbook, 2023

percentage of the labour force without work

LU
5.2%
IS
3.6%
GDP per capita The World Factbook, 2023

a broad measure of economic output per person

LU
$132,400
IS
$66,500

Luxembourg generally does better on employment & economy, though Iceland leads in unemployment rate.

Is it good for families?

Life expectancy The World Factbook, 2022

average years of life at birth

LU
83.0 yrs
IS
83.6 yrs
Infant mortality The World Factbook, 2022

deaths per 1,000 live births — lower is better

LU
3.2
IS
1.6

Iceland performs significantly better than Luxembourg across all family life metrics.

Data: Administration des Contributions Directes, The World Factbook, United Nations SDG Indicators, World Bank

What's the Climate Like?

Monthly averages — select a city to compare.

Luxembourg Rain: 35.3 in/yr (897 mm)
56° / 42°F

Avg. annual high / low

Reykjavik Rain: 31.4 in/yr (798 mm)
45° / 35°F

Avg. annual high / low

Months Luxembourg Reykjavik
Jan–Mar 42°/31°F (6°/0°C) 37°/28°F (3°/-2°C)
Apr–Jun 63°/46°F (17°/8°C) 48°/38°F (9°/4°C)
Jul–Sep 71°/54°F (21°/12°C) 54°/45°F (12°/7°C)
Oct–Dec 47°/37°F (8°/3°C) 39°/31°F (4°/-1°C)
View all months
Month Luxembourg Reykjavik
Jan 38°/29°F (3.1°/-1.6°C) 35°/27°F (1.9°/-3.0°C)
Feb 40°/30°F (4.7°/-1.3°C) 37°/28°F (2.8°/-2.1°C)
Mar 48°/35°F (9.1°/1.6°C) 38°/28°F (3.2°/-2.0°C)
Apr 56°/40°F (13.3°/4.4°C) 42°/33°F (5.7°/0.4°C)
May 64°/47°F (17.8°/8.4°C) 49°/38°F (9.4°/3.6°C)
Jun 69°/52°F (20.7°/11.1°C) 53°/44°F (11.7°/6.7°C)
Jul 74°/56°F (23.2°/13.3°C) 56°/47°F (13.3°/8.3°C)
Aug 73°/55°F (22.8°/13.0°C) 55°/46°F (13.0°/7.9°C)
Sep 65°/50°F (18.4°/10.0°C) 50°/41°F (10.1°/5.0°C)
Oct 56°/43°F (13.1°/6.3°C) 44°/36°F (6.8°/2.2°C)
Nov 45°/36°F (7.3°/2.2°C) 38°/30°F (3.4°/-1.3°C)
Dec 39°/31°F (3.9°/-0.5°C) 36°/27°F (2.2°/-2.8°C)

Data: Air Navigation Administration (ANA), Meteolux Air Navigation Administration (ANA), Meteolux, Icelandic Meteorological Office Icelandic Meteorological Office

Visitor Visa Requirements

Short-stay tourist visa rules between Luxembourg and Iceland. To live, work, or study long-term in Iceland, you'll need a separate residence or work visa — check Iceland's immigration authority.

Luxembourg passport

Luxembourg passport holder visiting Iceland

Visa Free
Luxembourg passport holders can enter Iceland without a visa.
Iceland passport

Iceland passport holder visiting Luxembourg

Visa Free
Iceland passport holders can enter Luxembourg without a visa.

Data: Henley Passport Index. Check with the destination country's embassy for the most current requirements.

Frequently Asked Questions

Is it cheaper to live in Iceland than Luxembourg?

Day-to-day costs in Iceland run about 16% higher than Luxembourg on average; specific cities can swing further.

How much money do I need to move to Iceland?

A safe rule of thumb is 3 months of local expenses plus relocation costs. On a €65,700 comparable salary, that's around ISK2,730,754 in Iceland for everyday spending, before flights, shipping, a rental deposit, and visa fees.

Can I work remotely from Iceland?

With 38.2 fixed broadband subscriptions per 100 people, Iceland can support video calls in major cities. The hard part is paperwork — visa category, employer policy on overseas staff, and tax residency in Luxembourg and Iceland.

Is Iceland safe for expats?

Iceland performs significantly better than Luxembourg across all safety metrics. The homicide rate in Iceland is 1.1 per 100,000 people, compared to 1.5 in Luxembourg. About 91% of people in Iceland feel safe walking alone at night.

How is healthcare in Iceland compared to Luxembourg?

Iceland generally does better on health & wellbeing, though Luxembourg leads in suicide rate. There are 45.2 doctors per 10,000 people in Iceland, compared to 29.9 in Luxembourg. Iceland scores 89 on the WHO universal health coverage index (Luxembourg: 83).

What's the weather like in Iceland compared to Luxembourg?

The average high temperature in Reykjavik is 45°F, compared to 56°F in Luxembourg. Reykjavik receives around 31.4 in of rainfall per year, while Luxembourg gets 35.3 in.

What language do they speak in Iceland?

The official language in Iceland is Icelandic. In Luxembourg, the official languages are French, German and Luxembourgish.

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At a Glance

LU IS
Population 650,364 357,603
Currency Euro (€) Icelandic Króna (ISK)
Languages French, German, Luxembourgish Icelandic
Driving side Right Right
Calling code +352 +354
Time zones 1 1
Emergency number 112 112