Luxembourg in the global top 3 destinations for expats
Luxembourg

Luxembourg in the global top 3 destinations for expats

All Eyes On Me
The editorial team
For the second consecutive year, Luxembourg has claimed third place in Remitly's Immigration Index 2026, behind Switzerland and Iceland. High salaries, free public transport and a safe environment make the Grand Duchy a destination of choice for international talent.
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Luxembourg confirms its 3rd place out of 82 countries in Remitly's Immigration Index 2026, despite a methodology expanded to 34 evaluation criteria, compared with 24 the previous year.

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The country achieves the world's highest score for GDP per capita, ranks first for its free public transport and moves up 25 places in terms of safety.

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The cost of housing and the limited number of international schools remain the main weaknesses of the Luxembourg model identified by the index.

Published on 25 May 2026, the Immigration Index 2026 by Remitly, an American platform specialising in international money transfers, examines 82 countries across 34 indicators in 16 categories. From income and safety to public transport, healthcare, the environment and the presence of immigrant communities, Luxembourg consistently appears near the top. 

In this reference ranking for expats worldwide, the Grand Duchy takes third place globally, behind Switzerland and Iceland, and ahead of Australia, Germany and the United States. This is the second consecutive year the country has appeared in this position, confirming its ability to attract international talent in a context of growing global mobility.

A global podium confirmed for the second consecutive year

The methodology for the 2026 edition has been significantly expanded compared with the previous one, moving from 24 to 34 criteria, with the addition of new indicators covering family, political stability, energy performance and international schools. Despite this more demanding evaluation framework, Luxembourg maintains its third place among the world's best destinations for expats. As Euronews points out, this position is driven by the country's strong earning potential, high levels of safety and excellent public transport.

The index also highlights the presence of a large community of foreign workers, with Luxembourg ranked third in the world for the proportion of immigrant population, behind the United Arab Emirates and Kuwait. This demographic reality is well documented by STATEC: as of 1 January 2025, 320,726 foreign nationals live in the Grand Duchy, representing 47% of the total population. 

Around 180 nationalities are present on Luxembourg territory, reflecting an attractiveness built over several decades of immigration driven by the country's economic strength. Luxembourg's population has nearly doubled, growing by 87%, between 1981 and 2025 to reach 681,973 inhabitants, an increase largely due to immigration. This trajectory illustrates the Grand Duchy's structural capacity to integrate talent from around the world, making it one of the most internationalised labour markets in Europe.

Economic and safety strengths at the top of the world rankings

On the economic front, Luxembourg achieves the world's highest score for GDP per capita, with 100 points out of 100, and climbs to third place globally for earning potential. The Immigration Index 2026 highlights the weight of the financial sector, the concentration of international employers and the high level of the Luxembourg minimum wage as the main explanatory factors. 

With an overall score of 71.3 out of 100 in the income category, Luxembourg outranks Ireland, the Netherlands and Australia. In terms of purchasing power, the country takes eighth place globally by combining income, rents, mortgage costs and the price of meals, gaining four places in a year.

Public transport is one of the Grand Duchy's most distinctive strengths. Luxembourg retains first place globally in this category thanks to a free network covering 97.4% of the population, with a total score of 49.6 out of 100, ahead of Azerbaijan, Cuba, Chile and China. 

Safety is another compelling argument for expats considering a move to Luxembourg. The country jumps 25 places in a year to reach fifth position globally among the safest countries, driven by political stability, low levels of crime and strong public trust in institutions. The Grand Duchy thus ranks ahead of Denmark, Norway and New Zealand in this category. 

On quality of life, Luxembourg achieves eighth place globally among the happiest countries, with a score of 92.1 out of 100, behind the Nordic nations but ahead of Mexico and Australia, with the study citing economic security and the robustness of public services.

Public transport is one of the Grand Duchy's most distinctive strengths.

Structural limitations weighing on residential attractiveness

Despite this broadly positive picture, the Immigration Index 2026 identifies several weaknesses in the Luxembourg model that deserve attention for expats and companies seeking to attract talent. The country continues to be held back by the cost of housing, the price of healthcare and a limited number of international schools compared with other major expat destinations. For families with school-age children, this last criterion can significantly influence the choice of destination, with Luxembourg less well-equipped on this point than cities such as Geneva, London or Brussels.

The cost of housing remains the most commonly cited constraint for expats settling in the Grand Duchy. While overall purchasing power remains competitive thanks to high income levels, rental and purchase prices in the Luxembourg City region weigh considerably on household budgets, even for highly skilled profiles. These factors do not undermine Luxembourg's overall position, but point to areas for improvement in order to sustain its attractiveness in the face of growing international competition between territories. 

STATEC projects a population of more than one million inhabitants in Luxembourg by 2070, a trajectory that depends largely on continued immigration and the country's ability to keep attracting skilled profiles from around the world.

A Grand Duchy that bets on talent to secure its future

Luxembourg's third place in Remitly's Immigration Index 2026 confirms the strength of a model built on openness, economic stability and a high quality of life. The Grand Duchy stands out particularly for its economic and safety performance, while displaying real vulnerabilities around affordable housing and international schooling provision. 

In a global context marked by competition between territories to attract the best talent, Luxembourg holds structural advantages that are difficult to replicate elsewhere - a minimum wage among the highest in Europe, a competitive tax environment for businesses, entirely free public transport and a unique multilingual and multicultural environment. 

Sustaining this attractiveness for expats will nonetheless require addressing the identified weaknesses, particularly around affordable housing and reception capacity for international families.

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