Cost of Living in Germany

The cost of living in Germany is fairly high. Munich is Germany's most expensive city, ranking 52nd out of 209 cities in Mercer's 2020 Cost of Living Survey. This makes it cheaper than London and Paris, but more expensive than Madrid and Brussels.

Accommodation prices vary depending on the neighbourhood and the size and type (flat-share, apartment or house). Private healthcare is also quite expensive, 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 expenses for expats are likely to be offset by higher salaries.

Cost of accommodation in Germany

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

Germany is a country of renters and few people buy property. For instance, only around 10 percent of people living in Berlin own their homes. While there are no major restrictions on non-Germans buying property, most expats also rent rather than buy homes in Germany.

Rent in major cities such as Berlin and Munich is particularly high – it's common for accommodation to gobble up half of a person's monthly salary. Accommodation preferred by expats tends to be even more expensive as it's typically furnished or partly furnished.

Cost of education in Germany

Education in Germany is of an excellent standard. Public schools don't charge fees and are an option well worth considering for expats with children young enough to pick up the language, or those who plan on staying for the long term.

But most expats send their children to international schools in Germany due to the language barrier, and to continue in the curriculum from their home country. These do tend to come at a hefty price though, and tuition fees vary according to the institution and the child's grade level.

Cost of transport in Germany

There are many options when it comes to transport in Germany, but not all of them are cheap.

Trains are often the fastest and most efficient way to get around. Travelling on the InterCity Express trains tends to be more expensive, while regular InterCity trains provide a cheaper alternative. Expats who plan on travelling by train should keep an eye out for special offers. The Bahn Card is also a good investment as it's valid for a year and is more economical.

Bus travel tends to be cheaper than travelling by train. If commuters book their tickets in advance they can get seats at reduced prices.

Generally, expats living in major urban hubs such as Hamburg or Munich won't need to own a car thanks to well-developed public transport networks. For those who do choose to drive in Germany, it isn't cheap – especially when it comes to fuel, parking and maintenance.

Cost of health insurance in Germany

If expats fall ill during their stay, they can rest assured that they will be in good hands thanks to high-quality local hospitals. It is, however, compulsory to have some form of health insurance in Germany.

Expats who are employed in Germany can take advantage of the state health insurance plan, which offers subsidised health insurance. That said, those who are self employed will need to purchase private health insurance which can cost a great deal.

International health insurance premiums vary according to the age and health of the individual as well as the type of cover they need.