Germany is known for its well-developed infrastructure, labour market, economy and established traditions. It’s one of the most preferred places to live among immigrants, especially for skilled workers.
The cost of living in Germany is not low but is certainly not expensive if you’re employed full-time there and have decent spending habits. An average of €990 is enough to cover living expenses per month without affording luxurious stuff.
To help you get a better understanding, we will explore the typical cost of living in Germany, including expenses such as housing, groceries and even your mobile phone bill.
Table of Contents
Opening a bank account in Germany
There are two options for opening a bank account if you have a German address. You have the option to open one before you’re an official resident, too. The non-resident account is for people who are planning on moving to Germany, have moved recently or are employed there but don’t yet have an official address.
For registered residents, the two options are a Standard and a Current accounts. With a Current account, you can receive your salary and pay your bills. With a Standard one, you have two possible options either instant access or fixed deposit.
What you need to open a German bank account as an expat:
- Valid passport
- A recent passport size photo
- Proof of address
- You may need proof of income/employment
- Proof that you are a student if opening a student account
- Not necessarily but you may need to show SCHUFA credit rating
How much is rent in Germany per month
The cost of renting an apartment in Germany varies significantly, with prices starting at approximately €567 per month in more affordable cities and reaching up to €1,398 in major cities. However, on average, the monthly rent in Germany is about €827.
When assessing the cost of living in a particular area, rent is often the primary consideration. This is why larger cities such as Berlin, Hamburg and Munich are considered more expensive. Both location and size play crucial roles in determining rental prices. Therefore, to mitigate living costs, many residents in Germany opt to live farther from city centres where rents are lower.
| Type of Product | Average Prices |
|---|---|
| Apartment (1 bedroom) in City Centre | 889.42 € |
| Apartment (1 bedroom) Outside of Centre | 678.13 € |
| Apartment (3 bedroom) in City Centre | 1,654.19 € |
| Apartment (3 bedrooms) Outside of Centre | 1,269.42 € |
Check out your options and research the good cities to live in Germany, then compare prices so you can choose the best place for you.
What is the average price of a house in Germany
Income levels significantly influence housing affordability. Regions with higher incomes typically feature more costly housing options, yet this does not automatically render them unaffordable.
In the second quarter of 2023, the average cost of houses in Germany’s largest cities ranged from about 5,000 euros to 10,000 euros per square meter. Munich recorded the highest prices, with a square meter rate of 9,931 euros, while Berlin offered the most competitive pricing at 4,802 euros per square meter.
Cost of utility bills in Germany
Knowing how much these monthly expenses will cost you when you move to Germany is crucial to organising your finances ahead of time. So, we’ve prepared a list of the costs for general bills you will have:
| Type of Product | Average Prices | Price Range |
|---|---|---|
| Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment | 300.30 € | |
| Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) | 45.75 € |
Transportation Costs in Germany
Transportation is an integral part of living in any big city. It’s a cost you cannot skip or cut on. Here are the main types of transport expenses you will have when living in Germany:
| Type of Product | Average Prices |
|---|---|
| One-way Ticket (Local Transport) | 3.00 € |
| Monthly Pass (Regular Price) | 49.00 € |
| Taxi 1km (Normal Tariff) | 2.15 € |
| Gasoline (1 liter) | 1.76 € |
Cost of necessities
Surprisingly for many, Berlin turns out to be a lot more affordable for a living than London, for example. A good comparison can be made when you compare the expenses of living in the capital cities of both countries. According to Numbeo – the most sophisticated tool for this purpose, a meal in an inexpensive restaurant in Berlin cost an average of 50% less than in London.
Food costs in Germany
Food costs add up to being one of the biggest monthly expenditures for every household. The more people in the family, the larger the cost, so here is a breakdown of the main food products and their average prices in Germany.
| Type of Product | Average Prices |
|---|---|
| Meal, Inexpensive Restaurant | 14.00 € |
| Domestic Beer (0.5 liter draught) | 4.00 € |
| Water (0.33 liter bottle) | 2.47 € |
| Milk (regular), (1 liter) | 1.04 € |
| Loaf of Fresh White Bread (500g) | 1.98 € |
| Rice (white), (1kg) | 2.74 € |
| Eggs (regular) (12) | 3.31 € |
| Beef Round (1kg) | 16.26 € |
| Banana (1kg) | 1.34 € |
Attire and personal care
Additionally, here are several other expenses:
| Type of Product | Average Prices |
|---|---|
| Fitness Club, Monthly Fee for 1 Adult | 34.18 € |
| Cinema, International Release, 1 Seat | 12.00 € |
What is the cost of living in Germany for students
The cost of living for students is close to what is required for adults. An average of 850 euros will be enough to cover basic expenses depending on which city you choose to live in and study. Smaller cities are respectively more affordable than the bigger ones.
200 – 370 Euro is the average cost of student accommodation in Germany, which most affects the price is the size and location of the property. The positive side of studying in Germany is that students may benefit from a reduction in prices for various utilities. With a student status, a person can get cheaper tickets to theatres, physical activity centres or free public transport in some areas.
Is healthcare free in Germany
All German citizens and legal residents in Germany have the right to access free public healthcare for services considered “medically necessary.” This healthcare is funded through social security contributions. However, it is mandatory for citizens to have either state or private health insurance.
Public healthcare covers a wide range of treatments and services, including vaccinations, prescription medications, and dental examinations. This comprehensive national coverage helps keep healthcare costs in Germany relatively low, contributing to the system’s positive global reputation. Since 2020, all employees in Germany earning a gross monthly salary below 5,213 EUR and an annual income under 62,550 EUR must have public health insurance.
Takeaways
The cost of living in Germany varies widely depending on location, lifestyle, and personal preferences. Major cities like Berlin, Munich, and Frankfurt tend to have higher living expenses. However, Germany offers a range of options for different budgets, with more affordable living costs in smaller towns and rural areas. When planning to live in Germany, it’s essential to consider expenses such as rent, utilities, groceries, transportation, and healthcare.
By budgeting wisely and exploring cost-saving strategies, you can enjoy a high quality of life in this diverse and vibrant country without overspending. Whether you’re a student, professional, or retiree, understanding the cost of living in Germany will help you make informed financial decisions and enjoy your time in this economically strong nation.
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