Cost of Living in Germany

Accommodation

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.

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 system, heating system, and garbage are mostly included in the overall rent of the house but it also depends on the city and housing society where you live in. Some of the 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 will show the comparison between major cities in Germany on utility bills.

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

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.