The cost of living in Germany

Germany is the richest country in the European Union (EU). Its comfortable living standards attract tens of thousands of expats each year.

However, life in Germany doesn’t come without its price tag. This overview of monthly expenses will give you a clear picture of what what it really costs to make the country your new home.

Continue reading for the following information:

What is the state of Germany’s economy?

Germany is the largest economy in the European Union (EU), beating even former member state UK by roughly €0.85 billion.

In 2023, its gross domestic product (GDP) was €4.12 billion, which works out to €48,800 per capita (2023). The Economic Commission (EC) forecasts that the country’s GDP will grow by 0.1% in 2024 and 1.0% in 2025, well below the EU average of 1.0% and 1.6%, respectively.

Of course, the GDP per capita doesn’t mean all German residents have just under 49K to spend. The equivalised disposable income (i.e., the total net income of all household members divided by the weighted number of household members) is €26,274 per person (2023). This is above the EU average of €20,350 per person.

Despite this incredibly rosy outlook, Eurostat (2023) reports that around 27.9% of Germans are at risk of poverty, and 13.3% of people can’t afford a meal with meat, chicken, fish, or a vegetarian equivalent every second day.

The Federal Statistics Office (Statistisches Bundesamt) feels these numbers are exaggerated. Instead, they believe that 14.4% of the population is at risk of poverty, and 21.3% may experience poverty or social exclusion. Our article on minimum wage in Germany explains more about average salaries and income.

In terms of purchasing power, Germany’s average headline inflation for 2024 is expected to be 2.4%, below the European Union’s average of 2.7%. This figure is likely to decline to 2.0% in 2025, again below the EU average of 2.2%.

The cost of living in Germany in 2024

According to the Federal Statistics Office, the average household expenses in Germany in 2022 accumulated to €2,846 per month. It’s worth noting that the data excludes farmers, self-employed persons, and households with a monthly net income of €18,000 or more.

On average, you’ll need:

Food, drink, tobacco	€417	Transportation	€347
Housing and utilities	€1,025	Recreation, sports, culture	€245
Healthcare	€118	Restaurants and hotels	€177
Internet and telecom	€122	Education	€19
Clothing and footwear	€103	Other	€273
Total			€2,846

Considering the inflation rate of 6.0% in 2023 and 2.4% in 2024, it’s recommended that your monthly budget have at least €3,089 per household.

Keep reading for an overview of the cost of living expenses you might come across in your daily life.

The price of groceries

Groceries are the second-largest expense after housing costs. In 2022, German households spent an average of €417 per month on food, beverages, and tobacco. The data doesn’t differentiate between alcoholic and non-alcoholic drinks.

Beer, wine, and liquor

From Hefeweizen and Jägermeister to Riesling and Glühwein, Germany has some great choices in alcoholic beverages. In 2023, the country was the largest beer producer in the EU. German drinkers consume around 10.7 liters of pure alcohol per year (2020), with most people preferring beer.

A pilsner in a local bar or restaurant will set you back around €3.50–5.00, while a craft one costs about €4.00–6.50. A glass of wine, on the other hand, costs between €4.50–6.50.

Alcohol is much, much cheaper in supermarkets. You can get a beer from €0.65–1.90, depending on the make and size. A decent bottle of wine usually starts from €5–10. The price of most liquor (e.g., gin, vodka, or Korn) starts from €4.00–6.50, depending on your drink of choice.

Food and drink

Following the Russian invasion of Ukraine in 2022, Germany saw a massive increase in food prices. In 2023, dairy products and eggs were around 16% more expensive than the year before. Meat and meat products saw a price spike of roughly 8.3%, and vegetables cost around 13% more.

Food prices have since dropped a little. The average price ranges* of basic supermarket items include:

Product	Price range	Product	Price range
Apples (1 kilo)	€1.75–3.50	Potatoes (1 kilo)	€1.00–4.15
Bread (1 loaf)	€1.29–2.29	Regular milk (1 liter)	€0.95–1.65
Cheese (1 kilo)	€18.90–37.90	Rice (1 kilo)	€1.49–4.49
Coffee (1 kilo)	€13.96–23.98	Tea (per bag)	€0.04–0.20
Eggs (12)	€2.39–4.45	Tomatoes (1 kilo)	€1.25–3.40
Orange juice (1 liter)	€1.99–3.70	Water (1 liter)	€0.19–1.25

Hygienic and household products

Hygienic and household products include everything from toothpaste and shampoo to dish soap (or washing-up liquid) and toilet bleach. The average price ranges* of these necessities include:

Product	Price range	Product	Price range
All-purpose cleaner (1 liter)	€0.85–2.99	Shampoo (300 ml)	€0.65–11.99
Deodorant (200 ml)	€0.85–5.65	Soap (1 liter)	€1.83–19.96
Dish soap (1 liter)	€0.95–2.99	Tampons (per tampon)	€0.03–0.19
Garbage bags (per bag)	€0.15–0.50	Toilet paper (per roll)	€0.37–1.30
Laundry detergent (1 liter)	€1.10–5.00	Toothpaste (125 ml)	€0.65–9.98

Housing costs

In 2022, the average housing costs were roughly €1,025 per household per month. This included rent and mortgage payments, water, electricity, gas, other fuels, and general maintenance.

Rent and property prices

Property prices differ significantly throughout Germany. For example, houses in Berlin, Düsseldorf, Frankfurt, Hamburg, and Munich (München) are comparatively more expensive than in rural areas and less popular cities.

In 2023, the average monthly rent for a home in Germany was €957. In Q3 2023, potential homeowners paid an average of €3,931 per square meter for apartments and €3,539 per square meter for houses. Real estate prices have since dropped, according to the Federal Statistics Office.

Depending on the location, you’ll pay the following average housing prices:

	Average monthly rent	Average property price per square meter (apartment)	Average property price per square meter (house)
Berlin	€1,317	€5,036	€3,839
Hamburg	€996	€4,476	€3,493
Frankfurt	€1,156	€3,857	€3,504
Munich	€1,398	€7,119	€6,027
Stuttgart	€1,023	€3,911	€4,107

The most expensive places are Berlin, Frankfurt, Munich, and Düsseldorf. However, if you’re looking to live in Belgium on a budget, the cheapest cities to move to are:

	Average monthly rent	Average property price per square meter (apartment)	Average property price per square meter (house)
Cologne (Köln)	€929	€3,531	€3,125
Dortmund	€624	€2,174	€2,715
Dresden	€622	€3,000	€2,955
Düsseldorf	€970	€3,495	€3,082
Hannover	€728	€2,711	€2,544

Find out more about the real estate market and property prices by visiting our articles on buying property and renting in Germany. Our country article on where to live highlights popular residential areas for expats. You can also check out available housing at online portals such as:

• Airbnb
• Homelike
• Spotahome
• Wunderflats

Utility bills: water, gas, electricity

Even with the so-called national ‘price brake’ on gas and electricity, Germany has one of the highest utility costs in the EU. Depending on your use and property price, you can expect to pay around €180–260 per month on utilities in 2024.

Of course, the price of water, gas, and electricity varies per federal state. In Germany, water costs an average of €1.83/cubic meter (2022). The EC reports that, during the second half of 2023, German households paid €0.0930 kilowatt/hour for gas (EU average: €0.0891) and €0.2882 kilowatt/hour (EU average: €0.2226) for electricity.

You can learn more about regional differences and providers by reading our article on utilities in Germany.

Healthcare

Everyone living and working in Germany must have health insurance. The public healthcare system has (almost) universal coverage, though some copayments are required for prescription meds and certain medical procedures.

Many locals and expats take out supplemental private health insurance to access shorter waiting times and a wider choice of doctors and specialists. It also offers more coverage for other healthcare services, such as dentistry or vision care.

Basic insurance packages start from as little as €11 a month. The more comprehensive the plan, the higher the cost will be. Older adults and those with pre-existing conditions may also face higher premiums.

In 2022, German households spent an average of €118 per month on health.

Internet and telecom

While relatively expensive, the cost of internet and other telecommunication services in Germany varies per location and service. For example, you can often get a discount when you get a telecom package that includes TV, internet, and home phone.

You can install fiber internet for as low as €9.99 a month (excluding installation), though your internet speed will not be great. Of course, the price increases exponentially after the initial sign-up offer has expired (usually after six months). Costs also rise when you want to improve the speed or add (more) TV channels.

Mobile phone plans are similarly expensive. Typical phone deals start from €14.95, but these come with little call minutes and internet data. To give you an indication of what to expect, average monthly communication costs in 2022 amounted to €122 per person.

Clothing and footwear

The price of clothes and shoes in Germany is in line with other EU countries. In 2022, people spent a monthly average of €103 on their attire.

The cost of clothing and footwear varies greatly, depending on the type and brand. For example, underwear costs around €3.50–6. Dresses and jeans, on the other hand, cost between €25–80. Business shoes for men and women range from €40 to €175.

Designer brands are more expensive, of course. The price of luxury clothing and accessories is similar to that in other parts of Europe.

Transportation

In 2022, Germans spent an average of €347 per month on transportation.

Public transport

While delays are very common, public transport in Germany is generally seen as having an exceptionally high standard. You can catch the bus, metro, train, or tram at reasonable prices. According to Numbeo’s cost of living in Germany, a single bus or metro fare costs between €3–4 in all major cities.

Bicycle-sharing services are also becoming more popular. While not necessarily part of the public transportation system, these present an affordable option for getting around the area. The two largest market players are the Deutsche Bahn’s Call a Bike and nextbike. Subscription plans and tariffs vary; you should check the availability and prices in your region.

If you are planning to commute to work, it’s recommended you get a monthly or yearly plan to travel at a reduced rate.

Driving and vehicle costs

Germany and cars go hand in hand. However, driving your own vehicle is a costly business. According to the 2022 Car Cost Index, it is the sixth most expensive country in Europe to own a car, after Switzerland, Norway, the Netherlands, Portugal, and Czechia. German vehicle owners pay an average of €1,130 per year.

Beyond the costs of lessons, a driving license, and the actual purchase of the vehicle, you’ll need to budget for:

• Car insurance – the mandatory liability insurance costs €260–360 a year
• Annual Road Tax – the amount depends on the region, as well as the engine power of your vehicle
• Fuel costs – as of August 2024, gasoline costs €1.69 per liter, and diesel costs €1.57 per liter
• Maintenance – car maintenance typically costs around €60–210, depending on the vehicle type and your location

Our article on driving in Germany covers more about costs, mandatory insurance, and driving regulations.

Leisure activities

If you’re living on a budget, you might not include leisure activities in your monthly expenses. However, in 2022, German households spent €245 per month on recreation, sports, and culture, and €177 per month on restaurants and hotels. With that totalling to €422, it might be something you want to factor in.

Movie theaters and cinemas

The average movie ticket in Germany costs around €9–11, depending on the location. Prices may rise to €12–15 on weekends. Some cinemas offer monthly passes that allow you to watch unlimited movies for an x amount of money. Others have discounted days and tickets, offering screenings for as low as €6–9.

Restaurants

Germany has some excellent choices for going out to dinner. Depending on your taste and date night, a meal at an inexpensive diner costs roughly €15–30. A three-course meal at a mid-range restaurant, on the other hand, can set you back €60–100. Then again, a döner kebab costs around €7 per piece.

Tips are not included in the bill; German etiquette prescribes a tip of 5–10% of the total amount.

Sports

If you are planning on joining a gym, you can expect to pay about €25–50 a month, depending on your location and membership. It’s worth trying out different gyms before signing up for a plan. Alternatively, you can join a local club to pick up a team sport.

Education and childcare

In 2022, people spent only €19 per month on education. Naturally, this cost of living expense does not include childcare in Germany.

Childcare

Working parents with (young) children may need to arrange for childcare from time to time. In Germany, options include daycares, independent childminders, kindergartens, and nurseries.

Public childcare facilities typically charge parents based on their income. In 2024, these cost between €15 and €400 per month. You can also send your child to private or international childcare, where monthly fees average around €1,000.

Some expat families may want to hire a nanny or au pair. Nannies have an average hourly rate of €17, whereas au pairs require room and board, as well as a minimum salary of €280 a month.

Children’s education

Germany’s public schools are funded by the government. There are no tuition fees, and parents only pay for food, materials, and outings.

Some expat parents may prefer to send their children to an international school. These private schools charge varying tuition fees, depending on their location, curriculum, and your child’s grade. For example, the annual cost of an elementary school ranges from €3,500 to €15,00. High school students, on the other hand, pay an average of €20,000 a year.

You can read more about school curriculums and fees in our article on international schools in Germany.

University tuition fees

Public universities are free for most students, the exception being study programs for people with prior professional experience. Tuition fees at private universities can reach up to €15,000 per year for bachelor’s degrees and €20,000 for master’s degrees.

University graduates who continue to work in Germany can usually deduct their tuition fees from their income tax. In that case, you should seek advice from a tax accountant, such as:

• Taxfix
• Wundertax

Learn more about university degrees and requirements by reading our article on studying in Germany.

How does Germany compare to the rest of the world?

Germany scores excellent grades on the OECD Better Life Index, which measures standards of living. The country outperforms the average on all fronts, including health, employment, work-life balance, education, environmental quality, safety, civic engagement, and life satisfaction.

Likewise, the Human Development Index ranks Germany as the 9^th best in the world.

The highest city in Germany on the 2023 Mercer’s quality of living index is Frankfurt (6^th), which is closely followed by Munich (7^th) and Düsseldorf (10^th). The cities are below Vienna (1^st), Zürich (2^nd), and Copenhagen (4^th), but above Amsterdam (14^th) and Paris (32^nd). Other German cities are ranked:

• Berlin is 18^th
• Hamburg 25^th
• Stuttgart 26^th
• Nuremberg 31^st
• Leipzig 59^th

The cost of living in Berlin

Surprisingly, the cost of living in Berlin is cheaper than many other major cities in Germany or capital cities around the world. The metropolis ranks 18^th on the 2023 Mercer’s cost of living index, meaning it is considerably cheaper to live in than Oslo (Norway), Dublin (Ireland), and Rome (Italy).

Compared to other capital cities, Berlin’s cost of living is (as of August 2024):

• 48.1% cheaper than New York (the US)
• 34.1% cheaper than London (the UK)
• 18.7% cheaper than Amsterdam (the Netherlands)
• 40.3% more expensive than Warsaw (Poland)
• 80.5% more expensive than Bucharest (Romania)
• 147.1% more expensive than Kyiv (Ukraine)
• 213.3% more expensive than Delhi (India)

The cost of living in Munich

Munich is Germany’s third-largest city, with a total population of roughly 1.5 million people (2024). Bavaria’s state capital has a thriving tech scene and is home to some of the country’s most valuable startup unicorns, causing the city to be dubbed the “California of Europe”.

The cost of living in Munich is among the highest in Germany. Compared to other cities around the world, life in the city is (as of August 2024):

• 41.6% cheaper than New York (the US)
• 25.8% cheaper than London (the UK)
• 8.5% cheaper than Amsterdam (the Netherlands)
• 58.0% more expensive than Warsaw (Poland)
• 103.2% more expensive than Bucharest (Romania)
• 178.2% more expensive than Kyiv (Ukraine)
• 252.8% more expensive than Delhi (India)

The cost of living in Stuttgart

The state capital of Stuttgart is the largest city in the German state of Baden-Württemberg and the sixth largest in Germany. While covering a variety of hills with vineyards, valleys, and parks, the city is – paradoxically – known as the “cradle of the automobile”.

Compared to other major cities, the cost of living in Stuttgart is (as of August 2024):

• 50.5% cheaper than New York (the US)
• 37.2% cheaper than London (the UK)
• 22.5% cheaper than Amsterdam (the Netherlands)
• 33.8% more expensive than Warsaw (Poland)
• 72.1% more expensive than Bucharest (Romania)
• 135.6% more expensive than Kyiv (Ukraine)
• 198.8% more expensive than Delhi (India)

The cost of living in Heidelberg

Heidelberg is a city that revolves around the university and scientific research, while also a favorite among visitors for its riverside location and historic town center. Living in this city offers a mix of old and new.

The cost of living in Heidelberg is typically lower than in Frankfurt or Munich (as of August 2024), as well as:

• 49.6% cheaper than New York (the US)
• 36.0% cheaper than London (the UK)
• 21.0% cheaper than Amsterdam (the Netherlands)
• 36.3% more expensive than Warsaw (Poland)
• 75.3% more expensive than Bucharest (Romania)
• 140.0% more expensive than Kyiv (Ukraine)
• 204.3% more expensive than Delhi (India)

Financial aid for the cost of living in Germany

German residents are entitled to financial aid and social security benefits, depending on their situation. For example, certain no (or low) income households may apply for the Citizen’s Benefit (Bürgergeld) and free childcare.

Other benefits that can help you with the cost of living in Germany:

• Benefits in case of accidents at work or occupational diseases – available to people who are at risk of accidents in the workplace or occupational diseases
• Disability benefits – for people living with disabilities
• Family benefits – to help with the cost of raising a child
• Long-term care benefits – for persons who require specific equipment or long-term care
• Sickness benefits – available to workers who are unfit to work for the long term
• State benefits – to help survivors of war, violence, or state injustice, persons injured in military service or community service, or by vaccinations
• Unemployment benefits – for people who are in between jobs

If you are unable to pay for food and groceries, you can register with the German foodbank (Tafel Deutschland) for help.

Useful resources

• The Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (Bundesministerium für Umwelt, Naturschutz, nukleare Sicherheit und Verbraucherschutz – BMUV) – official ministry responsible for consumer protections
• The Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband – vzbv) – official website of Germany’s independent watchdog for consumers