Cost of Living in Munich

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The cost of living in Munich is high, although not quite as high as in Berlin and Frankfurt. In the 2024 Mercer Cost of Living Survey, Munich ranked 38th out of 226 cities worldwide, putting it on par with other major European cities such as Amsterdam in the Netherlands (30th) and Paris, France (29th).

While housing and utility costs are quite high, you can save money using public transport to get around the city. You’ll also need to factor in the cost of compulsory health insurance.

You can send your kids to free public or bilingual schools. If you opt for international schooling, you should try to negotiate an allowance in your employment contract to cover the high costs.

Cost of accommodation in Munich

Although rental prices vary quite dramatically, depending on the time of year and area, your most considerable expense in Munich will likely be accommodation.

Naturally, you can expect to pay more for a larger property if you have a family. 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.

Additionally, if you have ‘cold rent’, which means utilities are not included in the rental price, you’ll have to account for utility expenses. Apartments in Germany are also often wholly unfurnished, with no built-in cabinets or light fixtures, so this is an additional initial expense.

Cost of transport in Munich

Munich has an extensive public transport system. Monthly passes are reasonable by European standards, depending on how many zones you must 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 and healthy way to get around, and you won’t have to pay parking fees.

Most residents cycle or use public transport rather than drive. If you choose to drive in Munich, you’ll find that cars are fairly expensive, even though petrol prices are reasonable. Car insurance can also be relatively high, and parking is often difficult to find, so costs can add up.

Cost of groceries in Munich

You can expect groceries in Munich to cost around the same as they would in most European cities, but if you’re from North America, you’re likely to find food products cost slightly more than you are used to.

Some of Munich’s most popular discount grocery shops include Aldi, Lidl, and Netto. If you’re looking for a taste of home, visit shops like Dallmayr Delikatessenhaus and Basic Bio-Supermarkt for a selection of gourmet products and organic foods.

Cost of entertainment and eating out in Munich

As a university city and a major German arts and culture centre, Munich has an exciting lifestyle to suit people from all walks of life. Beer gardens are particularly popular in Munich, but the city is also home to many restaurants, offering plenty of culinary delights at different price points.

There are also a fair few sports clubs and gyms available throughout Munich, but these come at a cost. If you’re budget-conscious, you’ll still be happy to see that the city is home to many free or affordable green spaces, while the Alps are under two hours away.

Cost of education in Munich

Munich offers two education options: public schools and international schools. German public school fees are low or non-existent, but if you’re an expat student, you must overcome the language barrier.

There are several international schools in Munich that can be a great alternative option, but their fees are expensive. While international school fees can be pricey, these schools typically offer excellent teaching standards, a wide variety of extracurricular activities, and state-of-the-art facilities.

Cost of healthcare in Munich

As is the case throughout Germany, private healthcare in Munich is quite pricey. Luckily, you’re entitled to public healthcare if you work for a German company. 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.

If you earn more than the threshold, you’ll need to invest in private health insurance. Some employers may be willing to contribute to this, and it’s something worth discussing in the contract negotiation process.