Prateek Gupta and Neha Maheshwari boldly moved in 2020, relocating from the bustling city of Bengaluru to the tranquil European country of Luxembourg. Despite the allure of higher paychecks in India or opportunities in the United States and Dubai, the couple chose Europe for a superior quality of life. In a conversation with Live Mint, they shared their experiences and insights into living in Europe compared to India.

Prateek, a senior analyst at Amazon, and Neha, a finance manager at a German real estate firm, acknowledged that staying in India could have brought them bigger salary increments. Moving to countries like the US or Dubai might have also boosted their earnings. However, their decision to move to Luxembourg was driven by a desire to experience Europe’s unique lifestyle. Prateek highlighted that many working-class Indians don’t move to Europe for higher incomes since they could easily earn 1.5 to 2 times more in the US or Dubai. The appeal lies in the overall quality of life, not just financial gain.

The Trade-off: Lower Taxes and Better Services

In Luxembourg, Prateek and Neha pay about 28% of their income as taxes, slightly lower than what they would pay in India. Despite the seemingly high tax rate, the couple finds it reasonable due to the extensive services they receive in return. They are required to contribute 3% of their income towards government-sponsored health insurance, which covers all healthcare needs except dental care. Neha emphasized that at just 3% of their income, they receive free healthcare, a significant benefit that adds to their overall well-being.

Another aspect of Luxembourg’s taxation that the couple appreciates is the mandatory 2% contribution to an unemployment fund. This scheme ensures that if either of them loses their job, the government will cover 80% of their last drawn salary for up to two years or until they find new employment. Neha pointed out that with just 5% of their income, they are covered for both medical emergencies and job loss, eliminating the need to build a separate emergency fund.

Enjoying the Perks: Luxury Cars and European Holidays

Living in Luxembourg has also allowed Prateek and Neha to enjoy some of life’s finer things, such as luxury cars and affordable European holidays. The couple owns a Mercedes Benz A-class, which cost them around 43,000 euros. When adjusted for Purchasing Power Parity, this amount is roughly ₹10.3 lakh, a stark contrast to the ₹55 lakh price tag for a similar car in Bengaluru. This affordability extends to their travel experiences as well, making European holidays a regular and enjoyable part of their life in Luxembourg.