Cost of Living in Germany 2024 – Essential Guide for Expats

Cost of living — what is involved

Cost of living refers to the amount of money needed to cover basic expenses such as housing, food and other groceries (including animal products like dog food), private and public transport, healthcare, education, and other necessities required to maintain a certain standard of living in a particular area or society. These costs can vary significantly depending on factors such as location, lifestyle, family size, and economic conditions. Understanding and managing one’s cost of living is essential for budgeting and financial planning. In any case, you are faced with the task of bringing your income and cost of living in Germany up to an adequate level

The cost of living in Germany is recorded once a year by the Federal Statistical Office, which analyses, for what people spend their money. Data is currently available for 2022.

In a broader sense, social security contributions for employees, administrative costs (for example, fees for authorities or the monthly costs for your bank account), costs for private insurances and taxes are also included in the cost of living. These costs are not included in the data collected by the Federal Statistical Office, nevertheless they are important for calculating the private household budget.

The portal numbeo.com portal shows the following shares of various expenses in the cost of living in Germany, which average German households spend.

Germany — not the most expensive country in Europe

Generally speaking, Germany is by no means the most expensive country in Europe. Some figures:

• Statistically reported minimum cost of living in Germany for a single person — currently €966 (USD 1,052) per month
• Family of four, estimated monthly costs — €3,274 (USD 3,565) on living expenses.

Cost of living in other European Countries

Life in European countries such as Norway, Denmark, Ireland, Iceland, and Switzerland is pricier than in Germany. Furthermore, life in the UK, and at least in the big cities of France, has a higher price tag.

The cost of living in Italy and Spain are slightly lower than in Germany. However, in bigger cities, you may even expect higher costs. Estimated monthly costs in Austria are slightly higher due to higher monthly rent.

Switzerland is traditionally regarded as the most expensive country in Europe. A single person currently needs at least CHF 1,543 / €1,604 / USD 1,746 to live there, while the average cost of living for a family of four is CHF 5,651 / €5,875 / USD 6,396. Zurich is the most expensive city in Europe.

Average salary in Germany

The average gross salary of employees is currently €3,333 per month (all employees), full-time employees earn €4,323 per month. The average net salary per month is €2,244 (full-time employees: €2,675).

Average cost of living in Germany — rent, food, mobility & Co.

The cost of living in Germany varies depending on the city and personal lifestyle, but here are some general insights that might be relevant for expats. For each position, we give some average prices.

Housing

Rent is a significant expense in Germany, especially in larger cities like Munich, Berlin, and Frankfurt. Prices can range widely depending on location, size, and amenities. Expect to have higher cost for centrally located apartments or houses in popular neighborhoods. Here are some average prices for one-bed-apartment and two-bed-apartments:

• One-bedroom flat in the city centre: €600-€1,000 per month
• One-bedroom flat outside the city centre: €400-€800 per month
• One-bedroom flat in the city centre: €800-€1,500 per month
• Two-bedroom flat outside the city centre: €600-€1,200 per month

Food

Grocery costs in Germany are moderate compared to some other European countries. Prices can vary depending on where you shop and whether you opt for organic food stores or a regular chain store supermarket. Eating out at an inexpensive or mid-range-restaurant is affordable, especially at casual eateries or traditional German pubs. Of course, there are also expensive locations with exclusive offers.

• Groceries: €200-€300 estimated monthly costs for a single person
• Dining out: €10-€20 for a meal at an inexpensive restaurant, €20-€30 in a mid-range restaurant

Private and public transport

Public transport is efficient and widely used in Germany. A monthly pass for buses, trams, and trains helps to save money for regular commuters.

Car ownership can be expensive due to fuel costs, car insurance costs, parking fees, and vehicle maintenance. The average monthly costs for a small car are between €170 and €350. Especially in big cities, you yould consider, if you really need a car or use alternatives like public transport with a monthly pass as a cheaper option. Furthermore, car sharing offers are especially in big cities increasingly popular.

• One-way-ticket/single ticket for local transport: €1.50-€5.00 depending on city and distance
• Monthly pass for local transport: €60-€100 depending on the city, replaced by the 49-€ ticket. The monthly fee of €49 for this monthly pass is valid nationwide. It allows you to use local and regional public transport at no extra cost
• Gasoline (per liter, March 2024): €1.70-€1.91 (Super E5), €1,68-€1,93 (Super E10)
• Taxi: start fare €3-€5, kilometer rate (depending on taxi company and city €1.40-€2.30

Health insurance costs

Germany has a high-quality healthcare system, but it comes with costs. Expats may need to enroll in the public health insurance system or opt for private insurance, depending on their circumstances.

For employees, the employer pays half of the contributions to statutory or private insurance and long-term care insurance. Freelancers must bear their health costs on their own.

Statutory (public) health insurance

Monthly costs of public health insurance vary depending on your income. In addition, there are price surcharges from the statutory health insurance funds.

The current contribution is 14.6% of gross salary or income from self-employment. In addition, there are income-related supplementary contributions of between 0.3% and 1.7%.

Private health insurance

The premiums for private health insurance are agreed individually with the insurance company. They depend on your age, your personal state of health and the scope of benefits of the tariff.

The average private insurance premium is currently €522 per month — with prices ranging from €200 to over €1,000.

Long-term care insurance

Both employees and the self-employed must pay the contribution to long-term care insurance. It depends on income and is between 0.95% and 3.4% of gross income. Those without children pay an additional contribution of 0.25%.

Utilities

Utility costs such as electricity, heating, water, communication, and internet connection add to the overall cost of living. Prices vary by region and usage.

The largest item is the incidental costs for the apartment (heating, electricity, water costs, waste disposal, communal costs). Depending on the size of the apartment and energy consumption, they average €120-€350 per month.

Here are some of the costs that play a role in utilities:

• Electricity: €0.25-€0.30 per kWh (kilowatt/hour)
• Gas: €0.11-€0.17 per kWh
• Heating: The heating costs depend on personal consumption, the provider’s prices, and the type of heating. The annual costs per square meter for oil heating are €8-€13 per year, per square meter costs for gas heating are €7-€11
• Water: €1-€4 per cubic meter
• Household contents insurance: €150-€300 per year
• Liability insurance: €50-€100 per year
• Internet: €15-€50 per month for a basic package
• Mobile phone plan: €5-€80 per month for basic packages, including calls, texts, and data
• Landline phone: €15-€30 per month for a basic landline service with limited calling features

For TV you have different options and average price ranges:

• Cable or satellite TV: €20-€50 per month for basic packages including various channels
• Streaming services (e.g., Netflix, Amazon Prime Video): €6-€18 per month for a basic subscription
• Public broadcasting fee (ARD, ZDF, other public broadcasters): Approximately €18 per month, which is mandatory for all households, regardless of whether they use public broadcasting services.

Saving money on telecommunications costs is supported by complete packages for mobile phone, landline telephone, internet, and TV.

Taxes

Germany has a progressive tax system, with tax rates on income ranging from 0% to 45%, depending on income level. If you live and work in Germany for a longer period, you must pay taxes depending on your personal income — regardless of whether you are employed or freelance/self-employed.

• Income tax rates: Progressive, ranging from 0% to 45%, depending on income level
• VAT (value-added tax): 19% or reduced 7% on goods and services

If you own a car, you have also to pay vehicle tax.

Education

Public education in Germany is mainly free, including university tuition for many programs. However, there may be fees for certain specialized programs or for private schools.

Recreation and Entertainment

Costs for leisure activities, entertainment, and cultural events can vary widely depending on personal preferences and location. Many cities offer free or low-cost cultural attractions, parks, and recreational facilities.

For a cinema ticket, you pay on average €8- €15. A gym membership costs about € 20-€ 50 per month.

Cost of living in Germany — regional differences

Overall, while Germany offers a high quality of life, expats should carefully consider their budget and monthly expenses when planning their relocation to ensure they can comfortably afford the cost of living in their chosen city or region. Between the various cities and regions, the costs for living in Germany partially vary greatly.

Purchasing power corresponds to the cost of living

The purchasing power of a region corresponds to the cost of living. Die Deutsche Gesellschaft für Konsumforschung (GfK) — a market research institute — publishes a purchasing power index once a year that covers all German cities and districts. The following chart shows the results for 2024.

Purchasing power is highest in major cities and in southern Germany — with some districts around Munich leading the way. In contrast, most of the new federal states (Eastern Germany) are characterized by a low level of purchasing power. These relations are also reflected in the cost of living.

Expensive and affordable cities and regions

The most expensive cities in Germany are Munich, Stuttgart, Frankfurt, and the areas surrounding these cities. Hamburg is also an expensive place to live. In contrast, you can still expect affordable prices in the new federal states, but also in many parts of Western Germany.

In the capital Berlin, rents have risen significantly recently. The city is not only attractive for politics and business but is also attracting many new residents. Nevertheless, both rents and other living expenses in Berlin are lower than in many other capital cities in Europe and worldwide. For example, rents in Berlin are still significantly lower than in London (+ 48 %), Amsterdam (+ 20 %) or Paris (+ 12 %).

In contrast, the cost of living in most Eastern German cities — including the cities of Leipzig and Dresden — remains very affordable. You can also expect lower prices in the countryside.

These distinctions of regions can help expats decide where to settle based on their budget, lifestyle preferences, and employment opportunities. However, it is essential to research specific cities and regions thoroughly to understand the full scope of living expenses and amenities available.

Most expensive Regions in Germany

• Munich (Bavaria): Munich and its surroundings consistently rank as one of the most expensive regions in Germany due to its strong economy, high demand for housing, and quality of life. Average Rent and overall cost of living tend to be higher here compared to other regions.
• Frankfurt (Hessen): Frankfurt is another expensive city, particularly due to its status as a major financial hub in Europe. Housing costs, including monthly rent and property prices, are notably high in Frankfurt.
• Hamburg (Hamburg): As one of Germany’s largest cities and a significant port, Hamburg has an excessive cost of living, especially in desirable neighborhoods close to the city center or waterfront areas.

More affordable Regions

• Eastern Germany (e.g., Saxony, Thuringia, Brandenburg): Some regions in Eastern Germany, such as Saxony, Thuringia, and Brandenburg, offer lower costs of living compared to western counterparts. Cities like Leipzig and Dresden in Saxony are known for their affordability and very moderate rental prices.
• Rural Areas: Rural areas and smaller towns across Germany tend to have lower living expenses compared to major urban centers. Rental costs and property prices are often more affordable, although access to certain amenities and services may be limited.
• Northern and Western Germany (e.g., Lower Saxony, Schleswig-Holstein): While cities like Hamburg and Bremen can be expensive, other regions in northern and Western Germany, such as Lower Saxony and Schleswig-Holstein, may offer a more moderate cost of living, particularly in smaller towns or suburban areas.

Rent in Germany — usually the largest cost of living item

As in other countries, housing rents cause most costs per month also in Germany. There are particularly large regional differences in monthly rent. If you are flexible in terms of location, you can save several hundred euros a month on living costs thanks to cheaper rents.

Below, we show the average rental prices for one- and two-bedroom apartments in Berlin, as well as in expensive and affordable German cities and regions. The average rents in the city and the surrounding area are included here (basic rents without incidental costs).

Average rent in more expensive cities and regions

Average rent in more affordable cities and regions

Costs for Groceries in Germany

Groceries include purchases of food and pet food as well as other household products such as personal care items, toilet paper and cleaning products.

Food expenses

The average expenditure on food for a single person in Germany is €200-€300 per month. Of course, your personal needs and preferences also play a role here. If you only buy food from brand-name supermarkets or organic food stores, you will pay more – or will have cheaper cost, if you also buy from discounters.

There are also regional differences in food prices. For example, in cities such as Munich, Frankfurt or Hamburg, you can expect to pay an average of up to €350 per person.

Here are is a more detailed overview for selected foods:

• Milk (1 L): €0.80-€ 1.50
• Bread (500 g): €1.50-€ 3.00
• Eggs (10 pieces): €1,50-€ 2,50
• Rice (1 kg): €1.00-€ 3.00
• Potatoes (1 kg): €1.00-€ 2.00
• Chicken (1 kg): €5.00-€ 10.00
• Tomatoes (1 kg): €2.00-€ 5.00
• Apples (1 kg): €1.50-€ 3.00
• Butter (500 g): €2.00-€ 3.50
• Mineral water (1 L): €0.50-€ 1.50
• Beer (0.5 L): €0.80-€ 2.00
• Wine (0.75 L, supermarket quality): €3.00-€ 10.00

The price differences reflect differences in regional price levels and the prices of the various stores.

Other Groceries

Prices for other groceries can vary greatly depending on personal lifestyle, demand for good quality and household size.

Excluding baby items and pet products, German households spend between €45 and €80 per month. Baby products cost €50-€100 per month and pet products €20-€50.

Costs for studying in Germany

As a rule, there are no tuition fees for higher education at German public universities or colleges. Exceptions apply in some federal states for part-time degree courses or for long-term students who do not complete their studies within the standard period of study (+ 6 semesters).

Tuition fees for non-EU-students

However, non-EU expats are in a special situation here. Since the 2017/2018 winter semester, state universities have been able to charge tuition fees of up to €1,500 per semester from these international students. This does not apply to students with a German Abitur or equivalent qualification, scholarship holders, recognized refugees, and doctoral students.

If you come from a non-EU country, you should also clarify whether and to what extent you have to pay tuition fees before applying to the university of your choice.

Semester fees

Semester fees are particularly important for students at state universities, as they are levied for administrative procedures and the financing of student services. A semester ticket for local public transport is also usually included. Depending on the federal state and university, you can expect to pay per semester a fee of €100-€300.

Private universities

Studying at private universities, on the other hand, is subject to fees — these universities set their tuition fees. A bachelor’s degree course costs an average of €7,000-€15,000 per year. The cost of a master’s degree is €10,000-€20,000 per year.

Student health insurance

Students can take out statutory health insurance at a special rate. On average, they cost €110-€113 per month.

For this type of health insurance, students from non-EU countries must fulfil the following requirements:

• • Valid passport
  • Enrollment at a university in Germany
  • Proof of health insurance in the home country that meets German standards. If this condition is not met, you must take out private insurance.

Generally, public insurance is, especially for students, the more economical option.

Housing costs in student accommodation

If you are studying and living in student accommodation, you can expect to pay the following average costs, which are mainly lower than renting your own apartment.

• Single room in a public university dormitory: €200-€400 per month
• Single room in a private student residence: €300-€600 per month

Furthermore, a shared apartment can for students be an optimal solution to safe money.

Student discounts

In Germany are numerous student discounts available. These include, for example:

• Discounted tickets for travel by train and bus or by plane
• Reduced admission prices for cultural and sports events
• Reduced fees and contributions for swimming pools, fitness studios and sports clubs
• Discounts on computers, software, and books
• Student discounts in some cafés and restaurants

Average monthly cost of living in Germany compared to Switzerland, and the USA

The following table shows the average cost of living for a single person in Germany, Switzerland, and the United States. It shows the total estimated monthly costs as well as the costs for rent, utilities, groceries, and other monthly expenses (private and public transport, communication, clothing, entertainment, personal care, health insurance).

In terms of the cost of living, Germany turns out to be the most favorable option among these three countries. In Switzerland and the USA, both rents and the general cost of living are higher. In the USA, rents are a cost driver, particularly in large cities, and health costs are significantly higher than in Germany and Switzerland and are borne privately.

In all three countries, the average cost of living is significantly higher than the minimum budget you need to live on, even at the lower end of the scale.

Conclusion: Cost of Living in Germany

Germany, with its robust economy, high quality of life, and rich cultural heritage, attracts expats from around the world for both work and leisure.

Living costs in Germany can vary significantly depending on the region, city, and lifestyle. Cities in the west and south, such as Munich, Frankfurt, and Stuttgart, are known to be pricier than those in the north and east, like Leipzig or Berlin, although the latter has seen rising costs recently. Housing typically represents the largest expense for expats, with prices varying widely by location and type of accommodation.

Despite these regional differences, Germany is known for offering a high standard of living at moderate prices compared to other Western European countries. This balance is one of the reasons why Germany remains a highly attractive destination for expats from across the globe.

Frequently Asked Questions