Moving to a new country usually involves wondering about the cost of living in the city in which you plan to live. The cost may vary from city to city, but when you compare it to another person's expenses, you might get a sense of what you might expect to pay.
Germany is known for its strong economy and high standard of living, but what does it actually cost to live there? In this article, we'll take a closer look at the cost of living in Germany and what you can expect in terms of expenses.
I only lived in Stuttgart and Munich in Germany. Therefore, I wouldn’t be able to define the real cost of living in different cities in Germany. However, I can tell you how much it costs for a 3 member family to live in Munich - one of the most expensive cities in Germany.
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 a number of ways in which it can be categorized in terms of the cost of living. However, we are trying to categorize the most common categories here in order to make it easier for you.
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 2023?
The average cost of accommodation in Germany in 2023 can vary greatly depending on the type of housing, the location, and the individual's preferences. Here are some average costs for different types of housing in Germany:
Rent for a one-bedroom apartment in a city center: The average rent for a one-bedroom apartment in a city center in Germany is around €800 to €1,500 per month, although the exact cost can vary depending on the location and the type of apartment. Rent in major cities such as Berlin, Hamburg, and Munich tend to be more expensive than in smaller cities or rural areas.
Rent for a one-bedroom apartment outside of a city center: The average rent for a one-bedroom apartment outside of a city center in Germany is around €500 to €1,000 per month, although the exact cost can vary depending on the location and the type of apartment.
Rent for a shared apartment: Renting a room in a shared apartment in Germany is an affordable option for many people, with the average cost ranging from €300 to €800 per month, depending on the location and the type of apartment.
It's worth noting that the cost of accommodation in Germany can vary greatly depending on the type of housing, the location, and the individual's preferences, so it's important to research and compare the different options before making a decision. Additionally, there are often additional expenses associated with renting a home, such as utility bills, Internet, and insurance, so it's a good idea to factor these costs into your budget as well.
What is the average electricity cost in Germany in 2023?
The average electricity cost in Germany in 2023 is around €0.30 to €0.40 per kilowatt-hour (kWh). This means that the monthly electricity bill for a typical German household can range from €70 to €120, depending on the usage and size of the home. It's worth noting that electricity prices in Germany can vary depending on the region and the provider, so it's important to compare prices and select the best option for your needs. Additionally, there are various ways to reduce electricity costs, such as using energy-efficient appliances, implementing energy-saving measures, and taking advantage of renewable energy options.
What is the average heating cost in Germany in 2023?
The average heating cost in Germany in 2023 can vary depending on the size of the home, the type of heating system used, and the location. However, on average, a typical German household can expect to pay around €500 to €1,500 per year for heating expenses. This cost includes the cost of fuel, maintenance, and any upgrades or repairs to the heating system. It's worth noting that the cost of heating in Germany can be influenced by various factors, including the weather and energy prices, so it's important to budget accordingly.
What is the average internet cost in Germany in 2023?
The average cost of internet in Germany in 2023 can range from €20 to €50 per month, depending on the type of service and speed. For basic internet services with speeds of up to 100 Mbps, you can expect to pay around €20 to €30 per month. For faster internet speeds and more premium services, such as unlimited data usage, you can expect to pay around €40 to €50 per month. It's worth noting that the cost of the internet in Germany can vary depending on the provider and region, 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.
What is the average cost for Food and Groceries in Germany in 2023?
Eating habits, dietary requirements, and lifestyle may make a significant difference in the average cost of food and groceries. However, here are some estimated average costs for food and groceries in Germany:
Groceries: The average cost of groceries in Germany is 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: The average cost of dining out in Germany is 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.
It's worth noting that the cost of food and groceries in Germany can vary greatly depending on the individual's eating habits, dietary requirements, and lifestyle, so it's important to budget accordingly and keep track of spending. Additionally, there are often discounts and deals available for various types of food and groceries, so it's a good idea to research and compare the different options before making a decision.
What is the average transportation cost in Germany in 2023?
The average cost of transportation in Germany in 2023 can vary depending on the mode of transportation and the region. Here are some average costs for different types of transportation in Germany:
Public Transportation: The average cost of public transportation in Germany is around €40 to €120 per month, although the exact cost can vary depending on the city and the type of pass. Monthly passes for public transportation are usually available for a discounted rate, making it a convenient and cost-effective option for many people.
Taxi: The average cost of a taxi in Germany is around €2 to €4 per kilometer, 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, as well as a fee for luggage and additional passengers.
Car: 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 and the driving habits of the owner.
It's worth noting that transportation costs in Germany can vary greatly depending on the mode of transportation and the region, so it's important to consider the different options and budget accordingly. Additionally, there are various discounts and deals available for public transportation, so it's a good idea to research and compare the different options before making a decision.
What is the average insurance cost in Germany in 2023?
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 2023?
The average cost of loans in Germany in 2023 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 2023?
The average cost of leisure and entertainment in Germany in 2023 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.
Theater: The average cost of a theater 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 2023 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 2023 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 2023 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 2023 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 2023 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.
