Published on and written by Cyril Jarnias
Moving to Germany is attracting more and more expats, drawn by a robust economy, decent salaries, and efficient public services. But behind the reassuring image of a financially “reasonable” country lies a much more nuanced reality: the cost of living varies greatly from city to city, rent is a major budget item, and certain expenses – like energy or healthcare – often surprise newcomers.
This article provides a comprehensive, data-driven overview, based on the most recent data, to help establish a realistic budget before moving abroad.
How much do you need to live in Germany?
From an international perspective, Germany remains a country with a “moderate” cost of living compared to other developed economies. But this overall assessment hides a significant gap between the bare minimum and the comfortable standard of living most expats seek.
For a single adult, unofficial estimates of the “legal minimum” hover around €966 to €992 per month for essential expenses, equivalent to €11,904 per year. These amounts serve as a reference, for example for students or certain visa procedures, but they do not reflect a comfortable lifestyle in major cities.
For a family of four in Germany, monthly expenses excluding rent typically range between €3,274 and €4,303.
The table below summarizes the key figures mentioned in primary sources:
| Household Profile | Estimated Minimum Budget | Average / Comfortable Budget (excluding extremes) |
|---|---|---|
| Single Adult (all Germany) | €966–€992/month | €1,800–€2,500/month |
| Couple without children | – | €2,500–€3,000/month |
| Family of 4 (excluding rent) | €3,274–€3,389/month | ~€5,000/month with rent in a major city |
| Student visa blocked account requirement | – | €992–€2,182/month depending on requirement |
According to the Federal Statistical Office, German households spent an average of €2,846 per month in 2022 (excluding the wealthiest households, farmers, and the self-employed). Factoring in recent inflation, some calculations recommend aiming for at least €3,154 per month for an average household.
Salaries and Purchasing Power: What Residents Really Earn
To assess the cost of living, it must be compared to income. German figures show average salaries that are fairly decent for Europe, but a very uneven distribution across regions and professions.
Available statistics revolve around the following levels:
| Income Indicator | Approximate Average Amount |
|---|---|
| Average gross monthly salary (all employees) | ~€3,333 |
| Average gross monthly salary (full-time) | ~€4,323 |
| Average net monthly salary (all employees) | €2,244–€2,803 |
| Frequently cited net monthly salary | ~€2,962–€3,110 |
| Average gross household income | ~€4,700–€4,800/month |
| Average disposable income per person (annual) | ~€27,556 |
| Federal minimum gross salary (40 hours/week) | €1,920/month |
For a “comfortable” standard of living, many sources agree that an annual income of €50,000 to €80,000 allows for a good life, with some skilled positions exceeding €100,000. At the other end, people earning less than €14,000 per year are considered at risk of poverty.
Purchasing power in Germany shows strong geographic disparities. It is higher in the south of the country and in major economic hubs, especially around Munich. Conversely, it is lower in most of the eastern states (Länder).
Very Marked Regional Disparities
Germany has 16 states (Länder) and around 11,000 municipalities, resulting in sometimes dramatic price differences between regions. Generally speaking, the South (Bavaria, Baden-Württemberg) is the most expensive, while the East and some small towns in the West remain significantly more affordable.
The main trends are as follows:
An overview of cost of living differences between major German cities, from most expensive to most affordable.
Munich, Frankfurt, Stuttgart, and Hamburg are among the German metropolises with the highest cost of living.
Although prices are rising, Berlin remains less expensive than most other Western European capitals.
Leipzig, Dresden, Magdeburg, Halle, Saarbrücken, as well as many medium-sized cities and rural areas.
For downtown rents, recent data shows, for example:
| City (1-bedroom apartment downtown) | Estimated Average Rent |
|---|---|
| Munich | ≈ €1,436 |
| Frankfurt | ≈ €1,283 |
| Berlin | ≈ €1,220 |
| Stuttgart | ≈ €1,115 |
| Hamburg | ≈ €1,097 |
| Cologne | ≈ €1,027 |
| Leipzig | ≈ €721 |
| Essen | ≈ €634 |
| Saarbrücken | ≈ €486 |
For comparison, Berlin rents remain significantly lower than those in many neighboring capitals: about 19% lower than Paris, more than 54% lower than London, 38% lower than Amsterdam, and 50% lower than Zurich.
For an expat, these disparities mean that two identical salaries do not at all allow for the same standard of living depending on whether you settle in Munich, Frankfurt, or Leipzig.
Housing: The Budget-Busting Expense
In all scenarios, housing remains the heaviest expense. Whether it’s long-term rental, shared housing (WG), or buying property, this item can swallow up 30 to 40% of net income, or even more in the most sought-after cities.
The figures for renting are as follows: prices vary by location and the characteristics of the apartment or house.
– 1-bedroom apartment downtown: €600 to €1,500 depending on the city (up to €1,436 in Munich).
– 1-bedroom apartment in the suburbs: €430 to €1,218.
– 3-bedroom apartment: around €1,645 on average nationwide.
– Shared apartment (room in a WG): €250 to €700 per month, depending on the city and standard.
– Public student residence (single room): €200 to €400 per month.
– Private student residence: €300 to €600.
To illustrate the rental hierarchy in Germany: renting a 1-room apartment downtown in Stuttgart costs about 27% more than in Bremen. Conversely, rent in Leipzig can be over 35% lower than in Stuttgart. The gap is even more pronounced between Heidelberg and Saarbrücken, where the average rent in Saarbrücken remains over 50% lower.
In detail, the rent per square meter illustrates the market geography well:
| City | Average Rent per m² (approx.) |
|---|---|
| Munich | ~€21.9/m² |
| Frankfurt am Main | ~€18.5/m² |
| Berlin | ~€18.2/m² |
| Freiburg im Breisgau | ~€17.2/m² |
| Stuttgart | ~€16.9/m² |
| Hamburg</td | ~€16.3/m² |
| Cologne | ~€15.4/m² |
| Potsdam / Mainz / Heidelberg | ~€15.5–€16.2/m² |
| Chemnitz (Saxony) | ~€6.3/m² |
For rental access, it is common to have to pay a security deposit of two to three months’ rent excluding utilities. Furthermore, many apartments are rented without a fitted kitchen, which requires a significant additional investment upon moving in.
Buying Property: Prices Declining but Still High
On the buying side, prices have begun to decline since 2023 but remain high in major cities. In the third quarter of 2023, the average price per square meter was about €3,931 for apartments and €3,539 for houses, with strong local variations:
| City | Apartment (€/m²) | House (€/m²) |
|---|---|---|
| Munich | ~€7,119 | ~€6,027 |
| Berlin | ~€5,036 | ~€3,839 |
| Hamburg | ~€4,476 | ~€3,493 |
| Frankfurt | ~€3,857 | ~€3,504 |
| Stuttgart | ~€3,911 | ~€4,107 |
| Cologne | ~€3,531 | ~€3,125 |
| Dortmund | ~€2,174 | ~€2,715 |
| Dresden | ~€3,000 | ~€2,955 |
| Hanover | ~€2,711 | ~€2,544 |
To these amounts must be added the property transfer tax (Grunderwerbsteuer, 3.5 to 6.5% depending on the Land), notary and registration fees (around 2%), and, where applicable, the real estate agent’s commission (3 to 7%). The annual property tax, generally less than 0.5% of the property’s value, is most often borne by the owner, even if its cost can be partially passed on in operating costs (Nebenkosten).
Utilities and Energy: An Often Underestimated Expense
Newcomers tend to focus on rent and underestimate the real cost of “Nebenkosten”, these ancillary charges covering electricity, heating, water, garbage, building maintenance, and sometimes even basic internet.
For an apartment of about 85 m², statistics indicate an average cost of around €300 per month, with a wide range of €200 to €493 depending on consumption, the building’s energy performance, and the region. In some major cities like Cologne or Munich, the bill can easily exceed €330–€380.
| City (85 m², basic utilities) | Estimated Average Monthly Cost |
|---|---|
| Munich | ≈ €334 |
| Berlin | ≈ €323 |
| Cologne | ≈ €380 |
| Hamburg | ≈ €320 |
| Frankfurt | ≈ €330 |
| Düsseldorf | ≈ €217 |
German electricity is among the most expensive in the world in nominal terms. Household kWh are commonly billed between €0.25 and €0.30, with averages around €0.28–€0.30/kWh. A spectacular surge even temporarily pushed prices to nearly €0.49/kWh in 2022, before the introduction of a national price cap. Households often pay a monthly advance payment based on the previous occupant’s consumption, then receive an annual settlement that can lead to a refund… or a painful top-up payment.
Gas, primarily used for heating and hot water (about 75% of consumption), typically costs between €0.11 and €0.17/kWh, but this expense can double in winter. The bill is directly influenced by the quality of the home’s insulation and heating habits, such as the temperature maintained and ventilation practices.
Water, supplied by local public utilities, costs on average around €1.80–€2.30 per m³, with large local variations (around €2.80/m³ in Berlin, over €4/m³ in some southern cities). Tap water is drinkable everywhere, which limits the need to buy bottled water.
To this base add other quasi-mandatory fees:
– Public broadcasting fee (ARD/ZDF): €18.36 per month per household.
– High-speed internet (60 Mb/s and above): on average €40–€45 per month, with offers starting at €30–€35.
– Mobile plan (calls + 10 GB data and above): €10–€40 per month, average around €23–€26.
– Personal liability insurance: often €50–€100 per year, or a few euros per month.
– Household contents insurance: starting at €3.40 per month for a small apartment.
The final tally means the “housing + utilities + energy + telecoms” line easily absorbs 40 to 50% of the budget of an expat living alone in a major city.
Food: Between Discount and Premium Products
After housing, food constitutes the second major expense category. German households spend about 14 to 15% of their expenses on it, or around €400 to €420 per month on average for a household.
For a single adult, most estimates place the grocery bill between €200 and €300 monthly, depending on whether you cook more at home, prefer organic, or favor discount brands. For a family of four, figures are more around €600 to €1,000 per month.
Some average prices illustrate the budget structure:
| Product (supermarket) | Approximate Average Price |
|---|---|
| White bread (500 g) | ~€1.90 |
| Milk (1 L) | ~€1.10–€1.20 |
| Eggs (12) | ~€3.20–€3.30 |
| White rice (1 kg) | ~€2.90 |
| Potatoes (1 kg) | ~€1.40 |
| Tomatoes (1 kg) | ~€4.30 |
| Apples (1 kg) | ~€2.70 |
| Chicken breast (1 kg) | ~€10–€13 |
| Beef (1 kg) | ~€17–€18 |
| Local beer (0.5 L, store) | ~€0.80–€2.00 |
| Basic bottle of wine | ~€3–€10 |
Discount chains like Aldi, Lidl, Netto or Penny play a key role: by favoring them, it’s possible to save 10 to 20% on your grocery bill compared to more upscale chains like Rewe or Tegut, and even more compared to specialized organic supermarkets.
For expats, the price-to-quality ratio of fresh produce is often positive. However, food prices have increased by nearly 30% since 2021 and experts consider a return to pre-crisis levels unlikely.
Dining Out and Enjoying Leisure Activities
Eating out remains affordable if you aim for cheap options, but the bill climbs quickly in more gastronomic establishments or as soon as you go out more often.
A meal in an inexpensive restaurant or a kebab-type snack is generally billed between €10 and €15, while a full menu for two in a mid-range restaurant is around €60 to €80. A draught beer (0.5 L) costs around €4–€4.50, a cappuccino close to €3.40–€3.60, a small bottle of water on a terrace about €2.50.
Average monthly household spending on leisure and culture amounts to €245.
As the cultural offerings are abundant, there are many free or low-cost options: over 200 museums offer free general admission on certain days, and municipal libraries are often very accessible.
Transportation: An Efficient System, But Not Always Cheap
Germany’s public transport system is dense, efficient, and fairly well integrated. For expats, the main tool for managing daily travel is the famous Deutschland-Ticket, a monthly subscription valid on all local and regional public transport.
Since 2025, this pass costs €58 per month, and an increase to €63 is planned for 2026. It allows unlimited travel on buses, trams, subways, S-Bahn, and regional trains (RB/RE) throughout the country, but it is not valid on long-distance trains (ICE, IC, EC) or intercity buses like Flixbus. It is personal, non-transferable, only available in digital form (app or smart card), and valid for second class. Children under 6 travel for free.
Cost of a single AB ticket in Berlin, representative of fares in major French cities.
The table below provides some benchmarks:
| Transport Product (local) | Typical Price |
|---|---|
| Single ticket (bus / tram / subway) | ≈ €3–€3.80 |
| 24-hour ticket (major city) | ≈ €9–€10 |
| Classic local monthly pass | €60–€110 |
| Deutschland-Ticket (national, local/reg.) | €58/month (2025) |
| Taxi – base fare | ~€4.50 |
| Taxi – price per km | €1.80–€3.00 |
| Gasoline (Super, 2024–2025) | ~€1.70–€1.75/L |
Owning a car in Germany means adding to the gasoline cost: liability insurance (€260–€360 per year), the annual road tax (varies by engine), maintenance (often €60 to €210 per month including depreciation and minor repairs) and possible residential parking fees.
For frequent long-distance train travel, discount cards from Deutsche Bahn (BahnCard 25/50) can reduce costs by 25 to 50% on flexible fares, for an annual subscription (about €60 for the standard BahnCard 25, around €244 for the BahnCard 50).
Healthcare: A High-Performing System… Funded by High Contributions
One of Germany’s major assets is the quality of its healthcare system. But for an expat, the first surprise comes from how it works: health insurance is mandatory for all residents, and contributions represent a substantial part of the budget, especially for the self-employed.
The system rests on two main pillars:
– Public health insurance (GKV – Gesetzliche Krankenversicherung), which covers about 90% of the population.
– Private health insurance (PKV – Private Krankenversicherung), open to high earners, the self-employed, civil servants, and certain specific categories.
Cost of Public Insurance
The basic contribution is set at 14.6% of gross salary, plus a supplementary contribution specific to each insurance fund, averaging around 2–2.5%. The total is therefore around 17% of gross salary, calculated only up to an annual income ceiling (around €66,150 of income considered in 2025). This cost is shared equally between employer and employee.
Percentage of gross salary paid by a full-time employee for health insurance in Germany, with a matching amount covered by the employer.
Students under 30 benefit from heavily reduced rates, often around €110 to €140 per month, including long-term care insurance.
Cost of Private Insurance
Private premiums are not calculated based on income but on risk: age, health status, level of coverage chosen. The most common ranges go from about €200–€300 per month for a young, healthy adult with basic coverage, up to €700–€900 for more comprehensive or generous coverage later on. The employer also contributes up to 50% of the premium, limited to what they would have paid for public insurance.
The private health insurance system offers more comfortable benefits (private room, chief physician, better dental reimbursements), but it is generally impossible to re-enter the public system after the age of 55.
Daily Healthcare Expenses
Beyond contributions, out-of-pocket expenses remain limited: GKV insured do not pay for doctor visits but have co-payments for certain medications (generally 10% of the price, minimum €5, maximum €10 per package) and a fee of €10 per day of hospitalization, capped at 28 days per year.
In practice, statistics indicate that a German household spends on average around €118 per month on direct healthcare expenses (medications, non-covered services, etc.).
For an employed expat, the “health” line will therefore be most visible on the payslip, through the overall social security contributions (health, pension, unemployment, long-term care) which quickly take 20–22% of the gross salary on the employee side, with the employer paying a roughly equivalent share.
Education and Childcare: An Advantageous Public System, Expensive Private Options
For expat families, Germany offers a particular balance: free public schooling, largely accessible universities without tuition fees, but childcare and international schools sometimes very expensive.
Crèches, Daycare, and Kitas
Since 2013, every child from at least 12 months has a legal right to a subsidized childcare spot. In practice, shortages of spots remain frequent, especially for under-threes, in major cities (up to several tens of thousands of spots missing in some Länder). It is therefore recommended to start looking very early, sometimes during pregnancy.
The costs, however, vary enormously from one Land to another, by type of facility and family income:
The average monthly cost of a spot in a public crèche in Germany, according to some studies, typically ranging between €15 and €400.
The good news for taxpayers: a significant portion of childcare costs (up to €4,000 per child per year) is tax-deductible.
Schools and Universities
Public schooling (Grundschule and secondary) is free. Parents essentially cover supplies, textbooks, school trips, and extracurricular activities. Private schools, often subsidized, remain fee-paying but at more moderate levels than elsewhere in Western Europe.
Annual tuition fees at some international schools can reach up to €40,000.
For higher education, the German model is very attractive: most public universities do not charge tuition fees, apart from a “semester contribution” (€100 to €350 per semester) covering administrative fees and, often, a regional transport pass. Only a few Länder – such as Baden-Württemberg – impose enrollment fees for non-EU students, around €1,500 per semester. Private universities, however, charge fees ranging from €3,000 to over €20,000 per year.
For an expat student, the typical monthly budget would thus include:
– Rent (dormitory or shared apartment): €250–€800 depending on the city and type of accommodation.
– Food: €150–€250.
– Transport (often included in semester fees): €0–€60.
– Health (student insurance): €110–€140.
– Miscellaneous (leisure, clothing, supplies): €100–€200.
German authorities generally estimate that a student needs about €950–€1,000 per month to live, which explains the requirement for a blocked account of around €11,904 per year (€992/month) for certain student visas.
Insurance and Other Common Expenses
Beyond healthcare, life in Germany relies on a veritable “insurance ecosystem” that many residents consider essential:
A summary of the main types of insurance and their average annual costs for budget estimation.
Cost: €50 to €100 per year. This insurance is highly recommended to cover damages caused to others in private life.
Cost: starting at €40-€45 per year for a small apartment. Price increases with floor space and the value of belongings.
Cost: starting at €14-€15 per month for 100 m². Mandatory for homeowners, it covers the structure of the home.
Cost: about €300 per year on average. This liability insurance is legally mandatory for any vehicle.
Cost: highly variable. Includes legal protection, accident, or supplemental health insurance for more complete coverage.
For clothing, the average household budget is around €100 per month. Standard prices for mid-range brand clothing are comparable to other Western European countries: a pair of jeans often costs €40–€110, a summer dress €20–€60, brand-name sneakers €50–€120.
How Does Germany Compare Globally?
For a global perspective, international comparisons are instructive:
Rents are on average 47% cheaper in Germany than in the United States.
In Europe, Germany is in the middle of the pack: cheaper than Switzerland, Norway, Denmark, or Ireland, more expensive than Spain or parts of Italy and Eastern Europe.
Building Your Expat Budget: Some Data-Driven Benchmarks
By combining all the previous data, it’s possible to outline realistic budget profiles for different types of expats.
Example: Single adult in an expensive major city (Munich / Frankfurt / Hamburg)
– Rent (1-bedroom downtown): €1,100–€1,450.
– Utilities and energy: €250–€350.
– Internet + mobile: €60–€80.
– Food: €250–€350.
– Transport (Deutschland-Ticket or local pass): €60–€100.
– Health (employee GKV share): depends on salary; for a gross of €4,000, count €300–€350 for health/long-term care contributions on the employee side of the payslip.
– Leisure, clothing, miscellaneous: €200–€300.
Excluding social security contributions, the cost of daily living falls within this range in euros per month.
Example: Couple with two children in a medium-sized city in the East (Leipzig / Dresden)
– Rent (3 rooms, urban area): €900–€1,200.
– Utilities and energy: €250–€350.
– Food: €600–€800.
– Childcare (public Kita + after-school): €0–€400 depending on the Land and income.
– Transport (pass(es) or Deutschland-Ticket): €100–€150.
– Internet + mobiles: €80–€100.
– Leisure, clothing, miscellaneous: €300–€400.
With good control of housing and childcare costs, a family can live comfortably on around €3,000–€3,500 in monthly expenses before taxes and contributions. Considering progressive taxation and social charges, a combined gross income of €60,000–€80,000 per year generally offers a comfortable standard of living in this type of city.
What an Expat Should Especially Anticipate
In conclusion, several key takeaways clearly emerge from the data:
Housing is the most impactful budget item, varying greatly by city and type of accommodation. Energy costs (electricity, heating) are high, but savings of 5 to 30% are possible through good insulation and frugal habits. The high-performing healthcare system involves significant contributions, especially for the self-employed. While public education is an asset, childcare and international schools can be very costly. The Deutschland-Ticket makes public transport very accessible. Overall, despite a relatively affordable cost of housing, Germany displays high prices for food, energy, services, and clothing.
For an expat, the key is therefore to build a budget item by item based on your target city, housing plans, family situation, and professional status. National averages are useful for getting an idea, but it’s the trade-off between expected salary level and choice of location that will make the real difference in final purchasing power.
A 62-year-old retiree, with a financial estate exceeding one million euros well structured in Europe, wishes to transfer his tax residence to Germany to optimize his tax burden, diversify his investments, and maintain strong ties with France. Allocated budget: €10,000 for comprehensive support (tax advice, administrative formalities, relocation, and wealth structuring), without forced asset sales.
After analyzing several destinations (Portugal, Spain, Italy, Germany), the chosen strategy is to target Germany for its stable taxation, its network of tax treaties, and legal security, while benefiting from a deep real estate market and a high-performing healthcare system. The mission includes: pre-expatriation tax audit (exit tax, tax deferral), obtaining residence with rental or purchase of a primary residence, enrollment in the German health insurance system (GKV/PKV) and coordination with the French health insurance (CPAM), transfer of banking residence, plan to sever French tax ties (183 days/year outside France, center of economic interests), connection with a local network (lawyer, tax advisor (Steuerberater), bilingual intermediaries) and wealth integration (targeted analysis and restructuring).
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
