Cost of Living in Germany

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The cost of living in Germany is relatively high. If you’re in Berlin, you’ll find it to be Germany’s most expensive city, ranking 31st out of 226 cities in Mercer’s 2024 Cost of Living City Survey, with Frankfurt and Munich coming in at 35th and 38th, respectively. These cities are cheaper than London in the UK (8th) but more expensive than Dublin, Ireland (41st).

Accommodation prices vary depending on the neighbourhood and the size and type (flat-share, apartment, or house). Private healthcare is also quite pricey, as are school fees for international schools. Items such as clothing and cellular phones aren’t cheap either.

Taxes in Germany are also high, but if you’re an expat, your expenses are likely to be offset by higher salaries.

Cost of accommodation in Germany

The cost of accommodation in Germany is relatively high, but property prices vary significantly depending on the area.

Germany has a history of being a country of renters, with fewer people buying property. While there are no significant restrictions on non-Germans buying property, most expats will also rent rather than buy homes in Germany.

Rent in major cities such as Berlin and Munich is particularly steep – it’s common for accommodation to gobble up half of your monthly salary. If you’re an expat, you’ll find accommodation even pricier, as it’s typically furnished or partly furnished.

Cost of transport in Germany

There are many options for transport in Germany, but not all of them are cheap. Germany offers many public transport options, including InterCity Express (ICE), regular InterCity (IC), and regional and local trains.

Trains are often the fastest and most efficient way to get around, although ICE trains are typically pricier than IC and regional trains. The Bahn Card is a good investment as it’s valid for a year and can make train travel more economical.

Bus travel tends to be cheaper than commuting by train, and booking tickets in advance can reduce prices.

If you live in major urban hubs such as Hamburg or Munich, you won’t need to purchase a car thanks to the well-developed public transport networks. However, driving in Germany can be costly, especially considering fuel, parking, and maintenance costs.

Cost of groceries in Germany

While groceries in Germany are not cheap, they are considered more affordable than in France and Austria. Essential food items such as bread, fresh produce, and eggs are all reasonably priced.

If you want a taste of home, expect to spend a fair bit on imported foods. You can reduce your monthly grocery bills by shopping for discounts and specials at some of Germany’s most popular supermarkets, such as Aldi, Lidl, and Spar.

Cost of entertainment and eating out in Germany

Entertainment and eating out in Germany can be pricey, depending on your preferences. Major metropolitan cities offer a variety of cuisines to enjoy. Food is generally reasonably priced, but drinks can be costlier than you may be used to.

Germany’s cities offer exciting nightlife and rich arts and cultural experiences. Still, you should budget carefully to enjoy these without breaking the bank. If you want to avoid hefty gym membership fees, consider joining a local sports team or taking walks or running to explore your suburb.

Cost of education in Germany

Education in Germany is of an excellent standard. Public schools don’t charge fees and are well worth considering if you have children young enough to pick up the local language (German) or if you plan on staying for the long term.

Many expats send their children to international schools in Germany due to the language barrier and to allow them to continue in the curriculum from their home countries. These tend to come at a steep price, though, and tuition fees vary according to the institution and the child’s grade level.

Cost of healthcare in Germany

If you fall ill during your stay, you can rest assured that you will be in good hands due to the exceptional healthcare in Germany. However, having some form of health insurance is compulsory in Germany.

If employed in Germany, you can take advantage of the state health insurance plan, which offers subsidised health insurance. If you are self-employed, however, you must purchase private health insurance, which can cost a great deal.

International health insurance premiums vary according to your age and health and the type of coverage you need.