Cost of Living in Germany + Examples [2024 GUIDE] - Navigate Germany

Living cost in Germany depends on your lifestyle, area of residence. Living standards are high in Germany as per Mercer’s Quality of Living survey. In 2019, 7 cities were featured in the top 30 out of which, 3 were listed in the top 10 i.e., Munich, Frankfurt and Dusseldorf. The health care facilities, transportation system, and education system is well-organized.

As per OECD (Organization for Economic Co-operation and Development) Better Life Index, Germany is above-average in terms of quality of life.

General Cost of Living in Germany

According to the Federal Statistics Office, average household expenses are around 2700 Euros a month, out of which, 900 Euros are allocated for housing, maintenance and energy. 350 Euros are spent on groceries, 350 Euros are spent on transport, and 280 Euros are for leisure activities.

As per HSBC, Germany is the best country for expats. People earning less than 14000 Euros (over 15% population) per year are at risk. These people are;

• People living alone
• People with low level education
• Single parents
• Unemployed

Average Cost of Living in Germany

Average monthly living expenses are around 1200 Euros but it also depends on your location. Living costs for singles are;

• Eating and Drinking: Around 150 to 200 Euros.
• Going Out: 50 to 150 Euros depending upon lifestyle.
• Health Insurance: Around 110 Euros (average rate for students for public health insurance)
• Rent: 300 to 700 Euros (shared flat rooms to a single-bed apartment in the city)
• Travel: over 100 Euros.
• Utilities: around 220 Euros including TV, mobile, and internet.
• Total: Over 850 to 1500 Euros

Living cost for couples sharing accommodation is about 50% high than this.

Living Cost in Major Cities

Cologne

Cologne is not as expensive as Munich, but more costly than Berlin. The student population is high in this city. The cost of a single-bed apartment starts from 800 Euros.

Frankfurt

Frankfurt is an expensive city where a single-bed apartment costs around 900 Euros. It is good to live for less because of the farmer market. For drinks, it is cheaper than bars.

Munich

Munich is a bit more expensive than Berlin due to its strong economy. A single-bed apartment costs more than 1000 Euros. Students should try to get student accommodation to manage their monthly expenses.

Berlin

Berlin is the capital but the cheapest German city. Rental prices vary, the west is more expensive than east. It has a multicultural population due to which street food is easily available in its open-air street food markets.

Hamburg

Rental and living prices in Hamburg are a little higher than in Berlin. It is full of students and professionals that increases the demand for flats. A single-bed apartment costs over 900 Euros.

Housing Costs

Housing costs are high depending on your property and area of living. Suburbs offer the best deals but expats have no restriction and can buy a house anywhere.

Property Cost

Property prices are high in Berlin. In 2020-21, an 11% increase was observed. Bavaria is more expensive where a house will cost three times higher than the southern cities. The price in Munich is 7882 Euros per square meter.

Average property prices per square meter for major cities are:

• Berlin: 4743 Euros
• Cologne: 3609 Euros
• Dortmund: 2071 Euros
• Dusseldorf: 3338 Euros
• Frankfurt: 4138 Euros
• Munich: 7882 Euros
• Stuttgart: 4037 Euros

Rental Costs

Renting in Germany is common but understanding the advertisements is more important. If an advertisement for a four-room apartment is published, it contains 2 bedrooms, a dining room, and a living room. Bathrooms, halls, and kitchens are excluded.

Rents are high in Berlin, Munich, Frankfurt, and Hamburg but low in Leipzig and Bremen.

Food and Drink Costs

Restaurants

Eating out is affordable in Germany but in high-end restaurants, prices differ. An average household spends 157 Euros on dining outs per month. An average lunch is around 8 to 10 Euros. The average price of a bakery snack and a sandwich is 5 Euros. A dinner at a typical restaurant costs about 10 to 50 Euros per head. Tip excluded from the bill is around 10 to 15%.

Groceries

Stores like Tegut and Rewe and staple foods are expensive in Germany. You can save around 10 to 15% when shopping at Aldi and Lidl.

A German spends over 14% of his income on food, drinks, and tobacco. Over 200 Euros per month are spent on groceries. A couple’s average monthly spending is 365 Euros, and a family of 4 spends around 500 Euros.

Beer and Wine

The average price of a small beer is 3.5 Euros and price of a beer bottle is 0.63 to 1.67 Euros.

A normal-ranged vodka is priced around 12 to 14 Euros and an affordable vodka costs 5 to 9 Euros depending on the supermarket.

Salary and Wages

The average monthly gross household income is around 4800 Euros. For single men, it is 2800 Euros a month. A woman makes 500 Euros less than this. In case of annual disposable income, a German household makes up to 30000 Euros (higher than OECD average) which makes it above all of the neighboring countries except Switzerland and Luxembourg.

From October 2022, the minimum wage is 12 Euros per hour so a person can make 1920 Euros a month after working 40 hours a week which is less than Belgium and Netherlands but higher than Poland, France and Czech Republic.

Healthcare Costs

Expats must have health insurance’s basic package of around 110 Euros (students) and 160 to 400 Euros (professionals). The cost depends upon age, cover, and the service provider. The employees can pay off their insurance from their company insurer and self-employed can have public and private health insurance.

German residents have full access to free or subsidized healthcare all across the country.

Study Cost

Germany’s education system is very developed because of the globally ranked universities in Germany. Public schools and some universities offer free education to students. International schools are also available to facilitate expats but they are expensive. The average cost is 16000 to 20000 Euros a year for comprehensive schools and 30 to 50% less for junior schools. Bilingual schools cost over 600 Euros a month.

Childcare Costs

The childcare system is strong due to a lot of daycare subsidies especially in East Germany. It is increasing in West Germany. Subsidized care is offered based on income in state owned childcare centers. Public daycare centers are free in Berlin but international and private facilities are costly. The average monthly salary of a private nanny is around 1500 Euros.

Domestic Bills

Utility Bills

The electricity price by Kilowatt-hour is highest all across Europe due to which an average household uses less energy. Utility bills are received on a quarterly basis that include electricity, gas, water and waste disposal. The cost for an apartment of 85 square meter is around:

• Berlin: 234 Euros
• Cologne: 249 Euros
• Dusseldorf: 217 Euros
• Frankfurt: 279 Euros
• Hamburg: 233 Euros
• Munich: 257 Euros

There is a shift in electricity and gas bills due to transitioning towards renewable energy. It will reduce the utility bills and people will pay more for green taxes. You can save money by changing electricity providers in Germany.

Internet/Phone

The internet cost is around 35 to 40 Euros per month. There is a fixed charge of landlines from service providers. A German television and Radio license (ARD) is mandatory for everyone in Germany.

Leisure Activities

Clothing

Dresses costs about 35 Euros at a chain store and a good jeans costs around 76 Euros.

Sports

Membership cost of sports club or gym is around 30 Euros. The rental cost of an hour-long tennis court session is about 20 Euros. Good runner shoes costs about 78 Euros.

Transportation Cost

Public transportation is excellent at a reasonable price which helps in reducing the living cost.

The monthly expense ranges from 60 to 90 Euros depending on the number of covered zones. A 1-way ticket costs around 2.7 to 4 Euros. Customers who commute to their offices via train can purchase a BahnCard to enjoy reduced rates. This card can be used on buses which are cheaper than trains. Fare is calculated on the basis of distance traveled and paid on the bus instead of prepaid tickets. Fine for travelling without ticket is 40 to 60 Euros.

Buying a car is expensive and people do not need a car in the major cities like Munich and Berlin. The fuel prices are around 1.42 Euros

Taxis fare vary from city to city around 3.2 to 3.6 Euros. Starting fare is 3.7 Euros in Munich, 4 Euros in Berlin, 3.5 Euros in Hamburg, 3.5 Euros in Frankfurt, Cologne and Dortmund.

Final Words

Germany offer high living standards in terms of education, child care, health care, transportation system and a lot more. The cost of living is reasonable compared to many other neighboring countries. Each German city have its own financial landscape, so you can choose one best city according to your needs and budget. The rich cultural experiences, the security of excellent healthcare, and the promise of a good quality of life often outweigh the numerical costs.