The cost of living in Munich is the highest in Germany. In the 2019 Mercer Cost of Living Survey, Munich ranked 67th out of 209 cities across the world, ranking as more expensive than other European cities like Madrid and Brussels, but cheaper than Milan and Paris.

While housing and utility costs are quite high, expats can save money by using public transport to get around in Munich. They'll also need to factor in the cost of compulsory health insurance. And while expats with children can send them to free public or bilingual schools, those that opt for international schooling should try to negotiate an allowance into their employment contract to cover the high costs.


Cost of accommodation in Munich

The biggest expense for expats in Munich is likely to be the cost of accommodation. Rental prices vary quite dramatically, depending on the time of year and specific area.

Naturally, expats with families can expect to pay more for a larger property. Also, given that Munich is a university city, the chances of finding reasonably priced accommodation are reduced because of the high demand for student housing.


Cost of food in Munich

Expats can expect groceries in Munich to cost around what they would in most European cities, but North American expats are likely to find food products cost slightly more than they are used to. The cost of entertainment and eating out depends on one’s personal preferences, but can be fairly pricey.


Cost of transport in Munich

Munich has an extensive public transport system. Monthly passes are reasonable by European standards, depending on how many zones the cardholder needs to travel through.

Cycling is another option for getting around and is the transport of choice for many of the city’s residents, especially students. It's an environmentally friendly way to get around and cyclists don’t have to pay parking fees. 

Most residents cycle or use public transport rather than drive a car. Expats that do choose to drive in Munich will find that cars are fairly expensive even though petrol prices are reasonable. Car insurance can also be quite high and parking is often difficult to find and parking costs can add up.


Cost of healthcare in Munich

As is the case throughout Germany, private healthcare in Munich is quite pricey. Luckily, expats are entitled to public healthcare. Anyone earning less than a certain amount per month is automatically entered into the state healthcare scheme, and their healthcare contributions are split with their employer. Expats earning more than the threshold will need to invest in private health insurance. Some employers may be willing to contribute to private health insurance and it's something worth discussing in the contract negotiation process.


Cost of education in Munich

There are two options for education in Munich: public schools and international schools. Fees at German public schools are low or non-existent but expat students will need to overcome the language barrier.

There are several international schools in Munich which can be a great alternative option, but their fees are expensive.


Cost of living in Munich chart

Note that prices may vary depending on product and service provider. The list below shows average prices for Munich in March 2020.

Accommodation (monthly rent)

One-bedroom apartment in city centre

EUR 1,300 - 1,500

One-bedroom apartment outside city centre

EUR 900 - 1,100

Three-bedroom apartment in city centre

EUR 2,000 - 2,500

Three-bedroom apartment outside city centre

EUR 1,600 - 2,000

Food and drink

Milk (1 litre)

EUR 0.90

Eggs (dozen)

EUR 2.45

Loaf of bread (white)

EUR 1.65

Rice (1kg)

EUR 1.90

Chicken breasts (1kg)

EUR 8

Pack of cigarettes (Marlboro)

EUR 7

Utilities

Monthly internet (uncapped ADSL or cable)

EUR 30

Mobile-to-mobile call rate (per minute)

EUR 0.15

Monthly utilities for standard household (electricity, water etc.)

EUR 150

Hourly rate for a domestic cleaner

EUR 15

Eating out and entertainment

Three-course meal for two at mid-range restaurant

EUR 60

Big Mac Meal

EUR 8

Cappuccino

EUR 3.50

Coca-Cola (330ml)

EUR 3

Beer (local)

EUR 3.80

Transportation

Taxi/km

EUR 2

City bus

EUR 3

Petrol per litre

EUR 1.45

Expat Health Insurance

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