Our Bureau
Luxembourg
In a bold move, Prateek Gupta and Neha Maheshwari have left behind the bustling city of Bengaluru to start a new chapter in one of the world’s smallest countries – Luxembourg. The couple, who relocated in 2020, has prioritized a better quality of life over potentially larger paychecks in India or other popular expat destinations like the United States or Dubai.
Gupta, a senior analyst at Amazon, and Maheshwari, a finance manager at a German real estate firm, acknowledged that staying in India or moving to the US could have provided more career opportunities and higher earnings. However, they were drawn to the superior quality of life that Europe offers.
“Continuing in India or moving to the US would have given us more career and earning opportunities. But we wanted to taste the superior quality of life, which Europe offers,” said Gupta.
Despite the relatively high tax rate of 28% in Luxembourg, which is only slightly lower than India’s, the couple finds it manageable due to the extensive services provided in return. They contribute 3% of their individual incomes towards government-sponsored health insurance, which covers almost all medical needs for free, except for dental care.
Another aspect of Luxembourg taxation that they appreciate is the unemployment fund, to which they both contribute 2% of their earnings. Under this scheme, if someone loses their job, the government pays 80% of their last drawn salary for up to two years or until they find another job.
“At 5% of my annual income, I’m covered for two major emergencies – medical and job loss. We don’t have to separately build an emergency fund,” Maheshwari explained.
One of the notable benefits of living in Luxembourg for Prateek and Neha is the affordability of luxury cars and European holidays. They own a Mercedes Benz A-Class, which cost them around 43,000 euros. When adjusted for Purchasing Power Parity (PPP), this amounts to approximately ₹10.3 lakh. In contrast, a similar car would cost ₹55 lakh in Bengaluru.
“I wouldn’t easily buy a luxury car in India priced over ₹50 lakh,” said Gupta. “But these German luxury cars are priced much lower here in Luxembourg and are easily affordable vis-à-vis my income in euros.”
The couple also highlighted how living in Europe has made travel more affordable and accessible. “Holidays in Europe are also affordable as we spend in the same currency we earn in,” Gupta noted. “Of course, the proximity between different countries also makes it cheaper as we can just drive around.”
While the decision to move to Luxembourg may seem unconventional, Prateek and Neha’s story serves as an inspiration for those seeking a better quality of life and a more balanced work-life dynamic. Their journey proves that sometimes, trading bigger paychecks for a superior living environment can lead to a more fulfilling and enriching life experience.
