Anyone who wants to move to Germany must consider the cost of living in Germany. Germany offers a moderate level of cost of living as compared to other countries. Generally, major cities like Berlin, Munich, and Hamburg have higher costs of accommodation, transportation, health, clothing & shoes, utilities, and sport & leisure. The cost of living majority depends on the area you live in and your lifestyle choices. In general, the average cost of living in Germany per person is given in the table below.

Is Germany expensive?

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Although the  Inflation rate in Germany increased by 2.2% in June 2024. The inflation rate is measured as per per-year change in the consumer price index (CPI). However, still Germany is the most affordable country. In Germany, cities in the south and west are more expensive than those in the north and east. Especially major cities, such as Munich, Stuttgart, Frankfurt, and Hamburg are more expensive as compared to Berlin. Munich is the most expensive with 2012,41 € for a single person and 4779,94€ for a family of four, however for the couple you can expect around 2500€  to 3500€ depending on the lifestyle it can vary.

Cost of Living for non-student population

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Germans mostly spend their income on housing, utilities, groceries, and transportation respectively. The average cost of living in Germany is nearly 1000 to 1200€ for a single person or couple, but your lifestyle choices affect this cost of living.

To give you a precise picture, here’s a categorized overview of living expenses.

Groceries

Accommodation

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Renting in Germany is a little bit different. It’s really necessary to understand the terminology. If an apartment is advertised as a 2-bedroom apartment, it means it would have 1 living room and 1 dining room. On the other hand, the kitchen and bathroom are not classified as rooms. One important thing to consider is the square meter. For example, if you are single you would need 12 square meters, for a couple it would be 24 square meters, and for a couple with a baby would need at least 31 square meters.

Type of Apartment	Munich	Berlin	Hamburg	Frankfurt	Stuttgart
1 bedroom apartment in city center	1,455.21€	1,283.73€	1,028.83€	1,205.92€	1,063.24€
1 bedroom apartment in suburb area	1,19.77€	886.94€	763.88€	882.40€	800.00€
3 bedroom apartment in city center	2,068.75€	2,328.22€	1,902.07€	2,007.50€	1,770.44€
3 bedroom apartment in suburb area	2,068.75€	1,764.52€	1,394.33€	1.470.00€	1,4096.67€
Rent of Apartment per square meter
Furnished 45 m2 apartment in city center	1,089€	911€	992€	914€	865€
Furnished 45 m2 apartment in suburb	1,620€	1,291€	1,392€	1,418€	1,028€
Furnished 85 m2 apartment in city center	2,015€	1,654€	1,361€	1,467€	1,303€
Furnished 85 m2 apartment in suburb	2,517€	2,355€	1,741€	1,907€	1,614€

student accommodation or dormitories are

Utilities

Utilities include electricity, heating, cooling, water, and garbage in Germany. To live in Germany every person must pay these basic utilities monthly. In general, you need to decide on an internet package and the average cost of an internet package which is the monthly package with unlimited data and 50MPS speed for a single person is 50 € average.

On the other hand, the electricity bill is also separate and you have to pay a monthly package. At the end of the year, electricity consumption will be calculated and compared with what you have paid. if you use less electricity you will receive a refund for the difference or you will need to pay the difference. The cost of the electricity package depends on the city where you live. For one person it is almost from 35 € to 55 € on average. For a family of three, it will range from 50 € to 70 €.

However, the cooling, heating, and garbage systems are mostly included in the overall rent of the house, but it also depends on the city and housing society where you live. Some housing societies charge for garbage separately. Overall, the utility bill for a person is 147,66€, and for a family 227,30€ on average. In addition, the following table compares utility bills in major cities in Germany.

Radio Fee 

The radio fee is mandatory and it is a unique system in Germany for funding public broadcasting known as “Rundfunkbeitrag”. Whether the house owner uses radio or television or not they have to pay for it. The amount that needs to be paid is determined by the federal states. Currently, this amount is 18.36€ per month per household. The Radio fee can be paid monthly or yearly. It also allows customers to pay for three months collectively and it would be nearly 55€. There are also reductions available for those in need such as people with disabilities and those living in shared accommodations.

Health insurance

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In Germany, two types of health insurance are offered. Public health insurance and private health insurance. The decision to choose public or private health insurance depends on annual income or whether you are self-employed or not. The major differences between them are the following.

Public Health Insurance:

 

1. The major difference is that everyone can be a member and get benefits, who is living in Germany.
2. How much you need to pay depends on your salary. Contribution increases as you earn more.
3.  Self-employed persons have to cover the full cost and premiums can reach up to 1.050.53 a month which you share with your employer.
4. Benefits could be canceled at any time, and it provides limited coverage. For example, public health insurance did not cover checkups from dermatologists, dentists, and private psychologists or therapists also did not cover some medicines.

Private Health Insurance:

1. Employees who earn above 69,300€ salary are considered self-employed and are eligible for private insurance. Additionally, students are also eligible for it.
2. In private health insurance, the monthly premium is not salary-dependent but rather depends on your health status and date of entry into the health insurance.
3. More coverage or benefits compared to public health insurance.

The names of some public health insurances in Germany are Barmer, TK, DAK, and Aok.

In addition, health insurance contributions consist of  (1) health insurance amounts to 14.6% of the salary, (2) provider-specific additional contribution which is 1.2% to 2.7% of your income, and (3) long-term care insurance which is 3.4% of your salary or income. However, it would be different for a person with children.

Health insurance contribution depends on some factors such as:

Students under the age of 30 years

If you are a student then you would get benefits. students would pay a reduced price if they are under 30 years but it also depends on your income. Health insurance coverage for students with children and without children who are under 30 years old is given below.

Voluntarily insured

A student over 30 years old could be eligible for voluntary insurance. Then the contribution would depend on the income. The minimum contribution is 220,00€ per month. If your yearly income exceeds 69,300€ or 30,000€ as self-employed then you are eligible for private insurance.

Above 2000 Income

Generally, if your income is above 2000€ then you and your employer pay 50% of the contribution.

Income between 538 and 2000

If you are a midi-jobber then you will get relief and you will need to pay less. Your contribution will be less compared to your employer.

Mini Jobber or employee with pay under 538€

In Germany, “Mini-Jobs” are part-time jobs with earnings below a certain threshold (currently €520 per month). Mini-jobbers have limited social security contributions. This means they generally don’t contribute to unemployment insurance and long-term care insurance.

Health Insurance:  Mini-jobbers are not automatically covered by statutory health insurance through their employment. They need to secure health insurance coverage through other means. If eligible, they can be covered by the health insurance of their spouse or partner.

Travel

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Germany, with its rich history, vibrant culture, and stunning landscapes, Germany is a popular destination for travellers. However, the cost of travel within the country can vary significantly. We will explore travel expenses for both students and non-students in Germany. A monthly travel ticket usually costs 105€ or more which is quite expensive.

Deutschland Ticket: Fortunately, Germany introduced the Duetschlandticket in 2023. It is a nationwide monthly public transport ticket. For €49 per month, it allows unlimited travel on local and regional public transport throughout Germany, including buses, trams, subways, and regional trains (excluding long-distance trains like ICE, IC, and EC). However, from January 2025, the Deutschland ticket will cost €58 per month. A special student version of the Deutschland ticket is available at a reduced price of €29.40 per month.

Regional Monthly Tickets: Many regions in Germany offer their own monthly tickets for travel within their respective transport networks. These tickets are often more affordable than the Deutschland ticket, especially for those who primarily travel within a specific region. You can check with the local transport authority (Verkehrsverbund) in your area for particular options and prices.

Company Travel Passes: Some employers offer subsidized or free public transportation passes as part of their employee benefits.

Food and Drink

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Germany offers a delightful culinary scene, but it’s essential to budget wisely. Groceries are generally affordable, with staples like bread, milk, and produce readily available.

• A simple lunch can be enjoyed for under €15, while a fast-food combo costs around €10. For a taste of local flavors, consider indulging in a hearty German meal at a traditional restaurant, though expect to spend €20-40 per person.
• Germany is renowned for its beer, with a vast selection available. A domestic beer at the supermarket costs around €1.14, while a bottle of good quality red wine can range from €7 and upwards. By exploring local markets, cooking some meals at home, and taking advantage of budget-friendly options like street food and cafes, you can savor the German culinary experience without breaking the bank.

Wages and salary in Germany

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Germany boasts a strong economy, which is reflected in its competitive salaries. While costs of living can vary, German workers generally enjoy a good standard of living. Salaries are influenced by various factors, including industry, experience, and location. High-tech sectors, finance, and engineering typically offer higher salaries compared to sectors like hospitality or retail.

Key factors shaping the German salary landscape include a robust minimum wage (€12.41 per hour), strong collective bargaining agreements, and a progressive income tax system. While major cities like Munich and Frankfurt tend to have higher salaries, Germany offers competitive wages across many sectors, contributing to its strong economy and high quality of life. However, in Germany, salaries are typically expressed as “Brutto” (gross pay) and “Netto” (net pay).

• Brutto: This refers to the total amount earned before any deductions are made.
• Netto: This is the amount of money you receive after taxes (income tax, church tax) and social security contributions (health insurance, pension, unemployment insurance) have been deducted.

Germany has a progressive income tax system, meaning the tax rate increases as income rises. The primary tax on income earned by individuals. Tax rates range from 14% to 45%, with higher earners paying a higher percentage.   

• Social Security Contributions (Sozialversicherungsbeiträge): These contributions fund social security programs like health insurance, pension, and unemployment insurance. Both employees and employers contribute to these programs.   
• Other Taxes:
  • Value Added Tax (VAT): A consumption tax added to the price of most goods and services.   

Education

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In Public universities, tuition fees are generally minimal or non-existent, students typically pay a semester contribution. This covers administrative costs, and student services, often including a public transportation pass (Semesterticket). Semester contributions usually range from €150 to €350. Students exceeding the standard study duration may face additional fees.

In private universities, tuition fees can vary significantly, ranging from several thousand to over €20,000 per year. Funding often relies on tuition fees, though some private universities receive support from foundations. The BAföG (Federal Student Financial Aid Program) provides grants and interest-free loans to eligible students, including many international students. However, eligibility criteria include age, nationality, and academic progress.

Daycare for children

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In Germany, various childcare options are available, with public daycare centers generally being the most affordable. Private daycare centers typically have higher fees. Other options include childminders and nannies, which can be more expensive than public centers.

 Public daycare Centres: Generally,  known as “Kitas” or “Kindergärten” in Germany, are generally the most affordable childcare option. Monthly fees typically range from €15 to €400, but can vary significantly depending on factors such as family income, the child’s age, and the specific daycare center.Furthermore, the cost of public daycare centers (Kitas or Kindergärten) varies significantly depending on the region. For instance, while some regions like Brandenburg may have minimal fees, often limited to a daily contribution towards meals (€1.50 per day), larger cities like Frankfurt typically have significantly higher monthly fees exceeding €300.

Private daycare centers: These can be significantly more expensive, often exceeding €1,000 per month.

Childminders (Tagesmütter): Costs vary depending on the childminder and the number of hours of care, typically ranging from €3 to €25 per hour.

Nannies: The most expensive option, with costs varying greatly depending on experience, qualifications, and working hours.

what are some strategies to reduce living Expenses in Germany?

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Life in Germany can be an exciting , filled with new experiences and opportunities. However, it can also be expensive. To help you make the most of your budget, here are some tips and tricks to reduce your cost of living in Germany:

1. Accommodation:

• Student Accommodation: Consider living in student dorms or shared flats. These options are often more affordable than renting an apartment alone.
• Explore alternative housing: Look into options like WG-Gesucht or Immowelt to find affordable rooms or flats.
• Negotiate rent: Don’t be afraid to negotiate rent with landlords, especially for longer leases.

2. Food:

• Non-expensive supermarkets: Shop at discount supermarkets like Lidl, Aldi, or Netto for groceries.
• Meal planning: Plan your meals in advance to avoid impulse purchases and reduce food waste.
• Cook at home: Cooking your own meals is significantly cheaper than eating out regularly.
• Take advantage of student discounts: Many restaurants and cafes offer student discounts.

3. Transportation:

• Student cards: Obtain a student card for discounted public transportation.
• Explore alternative transportation: Consider cycling or walking whenever possible.
• Carpooling: If you have a car, consider carpooling with other students to reduce fuel costs.

4. Entertainment and Leisure:

• Student memberships: Take advantage of student memberships at museums, cinemas, theaters, and gyms to enjoy discounted rates.
• Free events: Explore free events and activities in your city, such as parks, festivals, and library events.

5. Finances:

• Apply for tax return: File your tax return to get back some of the taxes you paid throughout the year.
• Claim the “Wohngeld” (housing allowance): If you meet the eligibility criteria, you may be able to receive financial support towards your rent.

6. Everyday Savings:

• • Deposit (Pfand): Return your empty bottles and cans to reclaim the deposit.
  • Bring your own fabric bags: Avoid using plastic bags by bringing your own reusable shopping bags.
  • Supermarket apps: Utilize supermarket apps for coupons, discounts, and special offers.
  • Weekend discounts: Look for weekend discounts on groceries, entertainment, and other services.
    • Negotiate rent: Don’t be afraid to negotiate rent with landlords, especially for longer leases.
      • Register on apps: Sign up for apps and websites that offer free or discounted baby products and services.
      • Explore available support programs: Research and apply for available government benefits and support programs for new parents. a car, consider carpooling with other students to reduce fuel costs.

      • 7. New Parents:

        • Register on apps: Sign up for apps and websites that offer free or discounted baby products and services.
        • Explore available support programs: Research and apply for available government benefits and support programs for new parents.
        • By implementing these tips, you can significantly reduce your living expenses and make the most of your student life in Germany. Remember to budget carefully, explore all available options, and take advantage of the many resources available to students.

Comparison of cost of living in Germany with other countries

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