Cost of living in Germany

Germany has a very progressive immigration policy. The country is interested in attracting new, hardworking employees to various industries and spares no effort to make the process of obtaining a work permit and residence permit easier for foreigners.

For those who plan on moving to Germany or live there temporarily to earn money, it is important to understand local prices for groceries, rent, utilities, entertainment, and more. By estimating a monthly budget, one can determine what salary will be sufficient for a comfortable stay in the country.

In this article, we will take a detailed look at the cost of living in Germany—from housing rent to food expenses, monthly train tickets, and leisure activities.

Previously, we discussed taxes in Germany.

The cost of living is an economic term that describes household expenses required for daily life. In simple terms, it includes all necessary expenditures, such as:

Sometimes, family budgets also include social security and insurance, especially for self-employed individuals.

According to data from the Federal Statistical Office (Destatis) for 2022 (collected every five years), the average monthly cost of living in Germany is as follows:

According to Destatis, Germans spend an average of 2,846 EUR per month. Out of this:

This amount might seem high, but the statistics include not only individuals living alone but also couples and families with children.

Average figures serve as a guideline for foreigners planning to move to Germany. However, each household has its own lifestyle and spending habits. Some people shop only in organic supermarkets, leading to higher grocery expenses. Others rely entirely on public transport, avoiding spending on fuel, while some use bicycles, reducing transportation expenses to zero. Families with children have to account for additional costs such as toys, children’s clothing, kindergarten fees (public or private), or even hiring a nanny.

The size of the city affected living costs significantly. In major metropolitan areas, rent, electricity, and other housing-related expenses account for more than half of all consumer spending. In rural areas, rent is generally cheaper, and many people do not pay it at all since they own property.

According to Statista, the highest cost of living is found in Germany’s economically strong western federal states, such as North Rhine-Westphalia, Bavaria, and Baden-Württemberg. The capital, Berlin, is also among the most expensive cities.

The cost of living is below average in the eastern German states and Saarland.

In terms of household expenses, food prices in Germany are second only to rent and continue to rise.

On average, the cost of food in 2022 was 417 EUR per month per family, including smokes. The final amount spent by Germans depends on where the shopping is done—discount stores or organic markets—and whether the household has alcohol or tobacco consumers. However, inflation has had a much greater impact on the budget—bread and grains have risen in price by 15% (as of February 2024), and the cost of butter has nearly doubled.

Fans of Coca-Cola should be prepared to pay 1.49 EUR for a 0.5-liter bottle, while a bottle of water costs 0.59 EUR, and a 330 ml Heineken beer costs 0.79 EUR.

Continuing with unhealthy habits, a pack of 20 Marlboro cigarettes costs 8.2 EUR. A Big Mac is priced at 11.39 EUR, while a Whopper is slightly more expensive at 11.49 EUR.

In the long run, you can save money by shopping at discount stores and comparing prices between supermarkets. Cutting expenses is an art in Germany, and if you plan to live in the country, it’s worth researching German shopping habits that help locals manage their budgets efficiently.

As mentioned earlier, housing is the largest expense category, accounting for 30-40% of total spending. Rent prices vary significantly depending on the federal state and the size of the property. Additionally, tenants must pay utility bills, which traditionally include electricity, heating, water, and waste disposal.

(Statista data, 2024)

If you plan to live in a metropolis or a large city, be prepared to pay around 20 EUR per square meter in rent.

According to Destatis, the lowest rental prices are found in Chemnitz, where the average rent is 6.3 EUR per square meter, including additional costs. Other affordable locations include Saxony-Anhalt and Saarland, both with an average rent of 6.7 EUR per square meter.

This metric shows what percentage of the average income is spent on rent in different cities:

The cost of water in Germany is around 2.29 EUR per cubic meter. Energy prices are 8 cents per kilowatt-hour (as of February 2024), placing them among the highest in Europe. A single-person household consumes an average of 108 kWh per month, which amounts to approximately 30 EUR.

In the long term, you can cut expenses by using energy-efficient appliances.

Utility bills are paid monthly or quarterly. Tenants usually receive a notification with a due date for payment.

Some households also include insurance expenses in their budget, although they are not part of the official cost-of-living index. Home insurance against theft costs at least 10 EUR per month, with the price varying depending on the size of the apartment.

Healthcare expenses in Germany include not only medications. Germans try to prevent illnesses by strengthening their bodies and maintaining good hygiene. They get gym memberships, sports club fees, and buy personal care products (cosmetics, soap, shower gel, toothpaste, and toilet paper). On average, a German household spends 118 EUR per month on this category. Specifically, a gym membership costs around 34.63 EUR.

The health insurance tax (7.3%) is automatically deducted from employees' salaries in Germany and is usually not included in the cost of living calculations. However, if you do not plan to work as an employee, you will need to account for social security payments in your budget independently.

Paying for health insurance is highly beneficial, as medical services without a policy are significantly more expensive. On average, self-employed individuals under 60 years old pay around 400 EUR per month for health insurance.

On average, a household in Germany spends 103 EUR per month on clothing. Most products available in stores are of high quality and the prices are scaled accordingly.

Germans generally buy fewer clothes but prefer high-quality items that last a long time. Those who purchase professional work uniforms are entitled to claim a partial income tax refund—a benefit also available to foreigners.

To save on clothing expenses, consider shopping at outlet stores and taking advantage of seasonal sales.

On average, families in Germany spend 245 EUR per month on cultural and entertainment activities. This statistic includes vacation expenses, so the actual monthly spending on leisure is likely lower. For example, a Netflix subscription costs almost 20 EUR per month.

Most German cities offer museums, cinemas, theaters, and concert venues. While over 200 museums in Germany offer free admission (except for special exhibitions, where tickets start at 10 EUR), only 1.4% of Germans visit them multiple times a month.

A movie ticket at Moviemento, Germany’s oldest cinema, costs 12 EUR, but the price can be reduced to 10 EUR with a membership. Refugees and low-income individuals can watch movies for free, thanks to tickets purchased by charitable donors. According to Statista, the average cinema ticket price in 2023 was 9.71 EUR. Entertainment prices continue to rise due to financial losses suffered by the industry during the pandemic.

In 2023, Germans’ most popular vacation destinations were the Baltic Sea, Italy, and the North Sea.

If you’re planning a vacation, especially if you already have friends in Germany, keep these expenses in mind when budgeting for travel.

Prices for internet access and phone services vary depending on the provider, speed, and data limits. On average, German households spend 47.11 EUR per month:

Cable TV costs between 6.99 and 12.99 EUR per month. Regardless of whether a household owns a radio or television, most Germans pay a broadcasting tax of 17.98 EUR per month.

Use If a person uses their personal smartphone and internet for work, whether self-employed or employed, they can deduct these expenses from their tax declaration.

Transportation expenses depend on how you choose to get around the city.

If you own a personal vehicle, you’ll need to consider fuel costs.

If you prefer public transport, it is recommended to purchase a Deutschland Ticket—a monthly pass for trains and buses across Germany, which costs 48 EUR.

The price of a single bus ticket varies by city. Most expensive city: Munich — 3.40 EUR per trip.

Electric scooters are becoming increasingly popular in Germany. In Berlin alone, there are over 50,000 e-scooters available for rent.

using hand signals for turns, as violations can lead to fines of up to 500 EUR.

Owner of an Electric Scooter:

Biking is the most cost-effective way to get around Germany, as it’s completely free (except for maintenance costs).

If a family has a child, around 500 EUR per month is added to the household budget for each child. Out of this amount:

Finding a kindergarten spot in Germany is quite difficult. Even local residents struggle to secure places for their children, making it even harder for immigrants to enroll their kids in public childcare facilities. A detailed guide on kindergartens and schools in Germany was discussed in this article.

If a child does get accepted into a kindergarten, parents should understand that:

The cost structure is unpredictable and depends on the specific kindergarten. Fees are often calculated based on:

Private kindergartens are significantly more expensive, with costs exceeding 1,000 EUR per month.

Parents can also hire a nanny (Tagesmutter) to care for their child at home. This option costs between 300 and 600 EUR per month.

The situation with schools is much better, as education is free, except for lunch expenses.

Parents can choose to enroll their child in either a school assigned by the Department of Education or a preferred Schule of their choice.

The Consumer Price Index (CPI) measures the average change in the cost of a typical basket of goods and services. According to the Federal Statistical Office, prices are rising across almost all categories.

Although the overall inflation rate in July 2024 was 2.3%, food prices increased by 1.3% compared to the previous year. Since 2021, food prices have risen by more than 29%. Experts express concern over this trend, with energy costs identified as a key driver of inflation.

Klaus Müller, a board member of the Federal Association of Consumer Organizations, highlights the frequent occurrence of “hidden” price increases. Manufacturers often reduce the volume of product packaging without lowering the price, which places an additional burden on consumers.

There is a significant price gap between supermarkets and discount stores. A 2023 market study conducted by the Consumer Center of North Rhine-Westphalia revealed notable differences in prices for comparable products.

The cost of essential groceries can vary substantially between stores—even those located next to each other. Müller advises comparing prices and shopping strategically to save money.

The future of food prices remains uncertain. However, many experts agree that prices will not return to pre-2020 levels. The Federal Statistical Office predicts that price increases will slow down, but costs will still remain high.

On average, a full-time employee under contract in Germany earns 4,105 EUR per month. According to Euronews experts, a good income in Germany ranges from 3,000 to 6,000 EUR per month, depending on profession, family size, and lifestyle.

The Federal Statistical Office provides data on monthly household expenses:

Based on these figures, one can estimate the average cost of living in Germany per month.

After accounting for all expenses, needs, and taxes, the remaining amount can either be saved or shared with family members living abroad — and many people who moved to the country for work do share. The Korona app will be a helpful tool, as it enables sending money transfers to 50+ countries worldwide.

The app is available for free on the App Store and Google Play. Users praise its convenience and ease of use, as well as the nearly instantaneous speed of transfers.

In our blog we share a lot about life and work in Europe. Follow the link to read more articles if this topic interests you.