When you move to a new city, you may wonder how much it will cost to live there. The cost of living can vary a lot from town to town, but comparing your expenses to someone else's can give you a general idea of what to expect. It is also a good idea researching the cost of living in a particular city can help you make informed decisions about your budget and lifestyle.
Germany is known for its strong economy and high standard of living, but what does it actually cost to live in Germany? In this article, let's take a closer look at the cost of living in Germany and what you can expect in terms of expenses.
Before talking about the expenses, let’s take a look at the average salary in Germany. The average salary in Germany is around €47,000 per year, but this can vary depending on the industry, location, and level of education and experience of the individual. For example, a recent study showed that the average salary in the finance industry in Germany is around €80,000 per year, while the average salary in the retail industry is around €30,000 per year.
We’ve published an article on how much a good salary in Germany looks like. Check it out to understand the minimum wages and different salary scales in Germany.
There are many ways to categorize the cost of living. However, we will focus on the most common categories here to make it easier for you to understand.
I have included my monthly expense calculator at the end of this article, so that you can easily compare your monthly expenses with someone who actually lives in Germany and get a glimpse of real life here.
What is the average cost for accommodation in Germany in 2024?
The price of housing in Germany can vary a lot depending on the type of place you want, where it's located, and what you're looking for. Here is a breakdown of the average cost for different types of housing in Germany:
A one-bedroom apartment in a city center: The average cost of a one-bedroom apartment in a city center in Germany is between €800 and €1,500 per month. The exact price will change depending on where the apartment is located and what it's like. Rent in big cities like Berlin, Hamburg, and Munich is usually more expensive than in smaller cities or rural areas.
A one-bedroom apartment outside of a city center: The average cost of a one-bedroom apartment outside of a city center in Germany is between €500 and €1,000 per month. The exact price will change depending on where the apartment is located and what it's like.
A room in a shared apartment: Renting a room in a shared apartment in Germany is a good way to save money. The average cost of a room in a shared apartment in Germany is between €300 and €800 per month. The exact price will change depending on where the apartment is located and what it's like.
What is the average electricity cost in Germany in 2024?
The cost of electricity in Germany varies depending on the region and the provider. However, in general, it is around €0.30 to €0.40 per kilowatt-hour (kWh). This means that a typical German household will pay around €70 to €120 per month for electricity.
Here is a table of the average electricity costs in Germany in 2024:
There are a number of ways to reduce your electricity costs. These include using energy-efficient appliances, implementing energy-saving measures, and switching to a new provider. In the article Which is the Best electricity provider in Germany and how to change?, we compare different electricity providers in Germany in terms of the cost, English support, and many other criteria. Don't forget to check it.
What is the average heating cost in Germany in 2024?
The average heating cost in Germany in 2024 can vary depending on different factors.
The size of the home: The larger the home, the more it will cost to heat.
The type of heating system used: Gas heating systems are typically the most expensive to operate, followed by oil heating systems and then electric heating systems.
The location: Heating costs can vary depending on the region of Germany. Homes in colder regions will typically have higher heating costs than homes in warmer regions.
The weather: Colder winters will lead to higher heating costs.
Energy prices: Energy prices can fluctuate, which can affect the cost of heating.
On average, a typical German household can expect to pay around €500 to €1,500 per year for heating expenses.
What is the average internet cost in Germany in 2024
The average cost of internet in Germany in 2024 can range from €20 to €50 per month, depending on the type of service and speed.
Cost of Basic Internet Services
For basic internet services with speeds of up to 100 Mbps, you can expect to pay around €20 to €30 per month. This is usually sufficient for basic activities like checking email, browsing the web, and streaming videos in standard definition.
Cost of Faster Internet Services
For faster internet speeds and more premium services, such as unlimited data usage, you can expect to pay around €40 to €50 per month. These plans are ideal for users who frequently stream high-definition videos, download large files, or play online games.
What is the average cost for Food and Groceries in Germany in 2024?
Eating habits, dietary requirements, and lifestyle can all have a significant impact on the average cost of food and groceries in Germany. However, here are some estimated average costs for food and groceries in Germany:
Groceries : The average cost of groceries in Germany would be around €200 to €400 per month, depending on the individual's eating habits and dietary requirements. Fresh fruits and vegetables, dairy products, meat, and bread are generally available at reasonable prices in Germany.
Dining Out : Dining out in Germany would be around €15 to €30 per person per meal, depending on the type of restaurant and location. Fast food and street food are generally cheaper than sit-down restaurants, while gourmet restaurants and high-end eateries can be more expensive.
What is the average transportation cost in Germany in 2024?
Transportation costs in Germany vary depending on the mode of transportation, region, and individual needs. Here's a breakdown of the average costs for different types of transportation in Germany:
Public Transportation: Public transportation is a convenient and cost-effective option for many people in Germany. The average cost of a monthly public transportation pass ranges from €40 to €120, depending on the city and the type of pass. Monthly passes are usually available for a discounted rate, and there are also various discounts and deals available for different groups of people, such as students, seniors, and people with disabilities.
Taxis: Taxis are a more expensive option than public transportation, but they can be a convenient choice for shorter trips or for traveling during late-night hours. The average cost of a taxi in Germany is around €2 to €4 per kilometre, although the exact cost can vary depending on the city and the time of day. Additionally, there is usually a starting fee of around €5 to €10.
Own vehicle : Owning a car in Germany can be more expensive than using public transportation or taxis. The average cost of owning a car in Germany is around €200 to €400 per month, including expenses such as fuel, insurance, maintenance, and parking. The exact cost can vary depending on the type of car, the driving habits of the owner, and the region.
What is the average insurance cost in Germany in 2024?
The average cost of insurance can vary depending on the type of insurance, your age, and other personal factors. Here are some average costs for different types of insurance in Germany:
Health Insurance: On average, health insurance in Germany costs around €100 to €180 per month, although the exact cost can vary depending on the type of coverage and the insurance company. Everyone who lives and works in Germany is required to have health insurance.
Car Insurance: The average cost of car insurance in Germany is around €600 to €1,500 per year, although the exact cost can vary depending on the type of vehicle, driving history, and other personal factors.
Home Insurance: The average cost of home insurance in Germany is around €100 to €600 per year, although the exact cost can vary depending on the value of the property, location, and other personal factors.
Life Insurance: The average cost of life insurance in Germany is around €20 to €50 per month, although the exact cost can vary depending on the type of coverage, age, and other personal factors.
It's worth noting that insurance costs in Germany can vary greatly depending on the type of coverage and the insurance company, so it's important to compare prices and select the best option for your needs. Additionally, there are various discounts and deals available, so it's a good idea to research and compare the different options before making a decision.
How much will loans cost on average in Germany in 2024?
The average cost of loans in Germany in 2024 can vary depending on the type of loan, the lender, and the borrower's credit score and financial history. Here are some average costs for different types of loans in Germany:
Personal Loans: The average interest rate for personal loans in Germany is around 2% to 4%, although the exact rate can vary depending on the lender and the borrower's credit score. The overall cost of a personal loan can be estimated by multiplying the loan amount by the interest rate and dividing by 12 to get the monthly payment.
Mortgage Loans: The average interest rate for mortgage loans in Germany is around 1% to 2%, although the exact rate can vary depending on the type of mortgage, the lender, and the borrower's credit score. The overall cost of a mortgage loan can be estimated by multiplying the loan amount by the interest rate and dividing by 12 to get the monthly payment.
Car Loans: The average interest rate for car loans in Germany is around 2% to 4%, although the exact rate can vary depending on the type of loan, the lender, and the borrower's credit score. The overall cost of a car loan can be estimated by multiplying the loan amount by the interest rate and dividing by 12 to get the monthly payment.
It's worth noting that the cost of loans in Germany can vary greatly depending on the type of loan, the lender, and the borrower's financial history, so it's important to compare prices and select the best option for your needs. Additionally, there are various fees and charges associated with taking out a loan, so it's a good idea to review the terms and conditions carefully before making a decision.
What is the average cost for Leisure and Entertainment in Germany in 2024?
The average cost of leisure and entertainment in Germany in 2024 can vary greatly depending on the individual's interests and lifestyle. However, here are some estimated average costs for leisure and entertainment in Germany:
Cinema: The average cost of a movie ticket in Germany is around €10 to €15, depending on the location and time of day.
Theatre: The average cost of a theatre ticket in Germany is around €30 to €50, depending on the performance and location.
Sports: The average cost of a gym membership in Germany is around €30 to €70 per month, depending on the gym and location. Other sports activities, such as football or basketball games, can range from €10 to €50 or more, depending on the event and location.
Music: The average cost of a concert ticket in Germany is around €30 to €100, depending on the performer and location.
Museums: The average cost of a museum admission in Germany is around €5 to €15, depending on the museum and location.
It's worth noting that the cost of leisure and entertainment in Germany can vary greatly depending on the individual's interests and lifestyle, so it's important to budget accordingly and keep track of spending. Additionally, there are often discounts and deals available for various leisure and entertainment activities, so it's a good idea to research and compare the different options before making a decision.
What is the average tax in Germany?
Depending on a person's income and other factors, the average tax in Germany in 2024 will vary greatly. However, here is some general information on taxes in Germany:
Income Tax: Germany has a progressive income tax system, which means that people with higher incomes pay a higher tax rate. The average income tax rate in Germany in 2024 ranges from 14% to 42%, with a special 45% rate for income above €260,000.
Value-Added Tax (VAT): Germany also has a value-added tax (VAT), which is a consumption tax that is included in the price of most goods and services. The standard VAT rate in Germany in 2024 is 19%, although there are reduced rates of 7% and 0% for certain goods and services.
Social Security Contributions: In addition to income and value-added taxes, most people in Germany are required to pay social security contributions, which help to fund various social welfare programs, such as pensions and health insurance. The average social security contribution rate in Germany in 2024 is around 13.5% to 15.5% of an individual's income, depending on their insurance coverage.
It's worth noting that taxes in Germany can vary greatly depending on a person's income, insurance coverage, and other factors, so it's important to research and consult a tax professional for more detailed information. Additionally, there are often tax breaks and deductions available for various expenses, such as education and housing, so it's a good idea to take advantage of these opportunities to lower your overall tax bill.
Our article on What expats need to know about German tax and tax classes will give you a thorough understanding about different tax classes in Germany and how you can benefit from the annual income tax returns. Therefore, make sure to check it out.
Additionally, you can use an online German tax calculator to calculate your tax returns at the end of the year.
Real life expenses
I used Google Sheets to create a monthly house expense calculator and below is a screenshot of it. In this example, I am trying to give you an idea of how much a family of three spends a month.
In conclusion, the cost of living in Germany in 2024 is relatively high compared to other countries, but it's worth it given the country's strong economy, high standard of living, and excellent public services. If you're planning to move to Germany, it's important to carefully consider your expenses and budget to ensure that you have enough money to live comfortably.
