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Is Luxembourg cheap for shopping?
Luxembourg

Is Luxembourg cheap for shopping?

14.03.2012 From our online archive
Luxembourg is increasingly popular with shoppers from across the border. This is according to a recent study of the Luxembourg Association of Retail Purchase habits within the Great Region.

Luxembourg is increasingly popular with shoppers from across the border. This is according to a recent study of the Luxembourg Association of Retail Purchase habits within the Great Region.

For cross-border visitors, Luxembourg is known as being a little bit more expensive than in neighbouring countries, but is it really? We all know about alcohol fuel, cigarettes and even coffee (the good things in life) but what about other stuff?

In a recent study, it appears that the Grand Duchy attracts more cross-border shoppers than previously thought, providing an alternative to their home towns. Even those who do not commute daily to work in Luxembourg sometimes pop over the border for a sneaky shopping session. At least this is according to a recent study by the Luxembourg Association of Retail Purchase regarding shopping habits in the Greater Region.

The results show that three quarters of residents and shoppers from the Trier and Saarbrücken area of Germany, come to Luxembourg at least once a year for shopping. A large proportion of those even make that trip once a month.

The Association pointed out that this was not simply a visit to the nearest petrol station. Fresh food, textiles and electrical goods are often purchased in Luxembourg.

So is it really cheaper? In several cases the answer surprisingly is yes. Many electrical goods especially are deemed cheaper and coffee for example, which is no doubt due to lower VAT. And of course we all know about fuel, cigarettes, and alcohol.

The standard VAT rate of 15% for Luxembourg is lower than all the surrounding countries: 19% in Germany, 19.6% in France and 21% in Belgium. In fact the Grand Duchy currently shares the lowest rate in the EU with Cyprus. The highest are Denmark, Sweden and Hungary at 25%.

However, for some reason several products, such as clothes seem a tad cheaper in Germany, and how many of us have made that trip to Möbel Martin for the odd cupboard or two?

What it comes down to, is that a cross-border comparison of prices is well worth a little study before buying.

What do you think? What is cheap in Luxembourg? What is expensive in the Grand Duchy? Let us know by commenting below.