Luxembourg has topped a global ranking of 69 cities for liveability, standing out for its rare mix of high incomes, free public transport and overall quality of life – a combination that outpaces even wealthier hubs like Zurich and Geneva.

Luxembourg has been ranked the world's most liveable city in Deutsche Bank's Mapping the World's Prices – 2025, a wide-ranging assessment of global cost and quality-of-life indicators.

The report by Deutsche Bank Research Institute, which analyses 69 cities, finds Luxembourg standing out for its high incomes, free public transport, and strong purchasing power. For those looking to maximise net income, Luxembourg remains a top contender. Only a handful of cities perform well on both quality of life and post-rent income – Luxembourg is among them, ranking first for liveability and fourth for salary-after-rent, a rare combination that sets it apart.

The city also takes fourth place for net monthly salaries at $6,156 USD, marking a 39% increase over the past five years. It’s one of just a few locations where salaries remain high even after accounting for rent. Luxembourg’s purchasing power has risen significantly since 2000, climbing 14 places globally, and its average inflation rate of 3.4% since 1971 is among the lowest worldwide.

Despite recent concerns around housing, the report notes that mortgage payments in Luxembourg are relatively low as a percentage of household income, placing it alongside more affordable cities like Brussels and Chicago. That may come as a surprise to many residents: earlier this month, the June edition of the Politmonitor confirmed that housing remains the top concern among Luxembourg voters, a point echoed by Housing Minister Claude Meisch, who stated that prices "still need to come down."

While cities like Zurich and Geneva continue to dominate salary charts, both have dropped out of the quality-of-life top five due to surging living costs. Luxembourg, by contrast, manages a rare balance. Free public transport reduces everyday costs, while short commutes and low pollution levels boost overall wellbeing.

The breakdown of the quality-of-life index shows Luxembourg scoring strongly in purchasing power (6th), commute times (5th), and pollution levels (4th). Utilities are not listed among the most expensive globally, suggesting that monthly costs for essentials like energy and water remain relatively moderate.

The Deutsche Bank study doesn't stop at serious economics. With a hint of humour, the report points out that Luxembourg may lead in quality of life, but lags behind at 91st in the FIFA rankings. It also takes a lighter look at the cost of daily indulgences. A cappuccino costs the most in Zurich, while a new iPhone is cheapest in Seoul. Bangalore is the best place for a cheap date, and Singapore tops the list for the most expensive glass of wine.

Luxembourg makes a more bitter appearance on one of these lists: it is the third most expensive place in the world for a 5 km taxi ride, behind only Zurich and Paris.