Currency & Payment

Luxembourg uses the euro (EUR, €), divided into 100 cents. As one of the world’s wealthiest countries, its cost of living is high, among the priciest in Western Europe. Cards and contactless are the norm, but it is still handy to carry a little cash for small purchases and tips.

As Luxembourg uses the euro, travellers from other eurozone countries need no exchange at all. If you are coming from outside the eurozone, withdrawing euros from an ATM usually gives the best rate. Exchange bureaus exist at the airport and in the city, but rates and fees vary, so compare before changing large amounts.

Card acceptance is very high in Luxembourg, and contactless payment is standard. Visa and Mastercard are taken almost everywhere; American Express is accepted at hotels and larger establishments but less widely. A working card covers nearly all situations, though keeping a little cash for small vendors is wise.

ATMs are easy to find in Luxembourg City and larger towns, run by banks such as BGL BNP Paribas, Spuerkeess (BCEE) and ING. Bank ATMs generally give fair rates and are safer than independent machines. Watch out for foreign-card fees, and always decline home-currency conversion (DCC) to get the better rate.

Apple Pay and Google Pay are widely accepted in Luxembourg wherever contactless cards work, making them ideal for visitors. Payconiq is a popular local mobile payment linked to Luxembourg bank accounts, so it is mainly for residents. For tourists, adding a card to Apple Pay or Google Pay is the simplest option.

Tipping is not obligatory in Luxembourg because service is included in the price by law. For good service it is common to round up the bill or leave around 5-10% in restaurants. Small tips or rounding up are appreciated for taxis and cafes, but never expected.

Luxembourg is expensive, with dining out and accommodation among the priciest costs. You can save a lot thanks to free nationwide public transport, supermarket food, bakeries for lunch, and by enjoying free attractions such as the old town, the casemates area and many walking trails. Weekday set lunches are better value than dinner.

Non-EU residents can claim a VAT (TVA) refund on eligible purchases above a minimum amount. Ask the shop for a tax-free form when you buy, then get customs validation when you finally leave the EU. Conditions and minimum spend apply, and the refund is paid via operators such as Global Blue.