The Cost of Living in Germany in 2024
This page analyses the cost of living in Germany in 2024. From rent, utilities and transport to entertainment, insurance and taxes, we assess the living expenses across the country to help you ascertain exactly how much living in Germany is likely to cost you.
The cost of living in Germany has been in rapid flux. Europe has experienced a turbulent few years since the pandemic, with further inflation brought on by the war in Ukraine. In the past 12 months, inflation in Germany was around 6%, with the most significant rises in energy and food prices. Inflation is expected to remain high in Germany until the end of 2024.
Against this backdrop of rapidly rising prices, it can be tricky to accurately determine the cost of living in Germany in 2024. Many costs remain largely the same (taxes and insurance) while others will vary considerably (food, drink and utilities). As we move through 2024, we will be frequently updating the numbers in the article to give you an accurate lay of the land at the time of reading.
However, despite current inflation, Germany remains a comparatively affordable place to call home, especially when matched up against other European countries. The affordability of Germany is even more impressive when you consider that the country still manages to offer a high quality of life and world-leading education, healthcare and transport.
To find out exactly how affordable Germany is in 2024, read on below…
The average cost of living in Germany in 2024
The cost of living in German of course varies from region to region, and is largely dependent on household sizes and lifestyle. To keep things simple, we will look at the standard basic costs you can expect to pay as an individual living in Germany. Some of these costs will of course be doubled, tripled or even quadrupled for families and larger households.
As a basic estimate, you can expect your total costs to be between €1200 – €3000 per month as an individual living in Germany. At the cheaper end of this range, you would likely be living in a flatshare outside of the city centre. While at the higher end, you could likely afford to rent your own apartment in the city centre.
Let us take a closer look at what you need to pay for in Germany on a monthly basis:
1️⃣ The Cost of Accommodation in Germany
Wherever you live in Germany, accommodation is likely to be your biggest expense. In fact, the cost of accommodation largely determines whether a city in Germany is considered cheap or expensive.
Renting an apartment in Germany
According to recent figures from Numbeo, you can expect to pay the following per month on rent:
€941 for a 1-bedroom, city-centre apartment.
€700 for a 1-bedroom apartment outside of the city centre.
€450 for a room in a shared flat.
❗ Note: Rent is one cost that varies tremendously. The averages above are for the whole of Germany so do not expect to find these prices in the centre of Munich or Berlin, where the average cost of renting an apartment can be considerably higher.
In the chart below, you can see the fluctuations in the average price of a 1-bedroom apartment in Germany’s six largest cities:
The average price of a 1-bedroom apartment
For tips on how to find an apartment in Germany, see our German Apartment Hunting Guide.
Utilities and internet
Unfortunately, your monthly accommodation costs do not stop with the rent. You will also need to pay for utilities including rubbish disposal, electricity, heating and water. For an 85 m2 apartment, this will cost €300 per month on average. Unlike rent, the cost of these utilities are fairly consistent across Germany.
Tenants in Germany are almost always responsible for arranging their own internet contract upon moving into an apartment, which will set you back €40 per month on average.
TV and radio tax (Rundfunkbeitrag)
In Germany, every household must pay a fee to finance Germany’s public broadcasting service. The fee is charged per household and is currently set at €18.36 per month.
The fee is charged irrespective of whether or not you watch German TV or listen to German radio. As the fee is charged per household, the fee can be split between tenants if you are living in a shared apartment.
Apartment deposit
When you rent an apartment in Germany, you will need to stump up a deposit. The deposit is used by the landlord to cover any damages you make to the property when living at the address. If there are no damages at the time of moving out, then you will receive the full deposit back in your bank account.
Even though you will likely receive your deposit back at a later date, you still need to have this amount in savings in order to rent an apartment in Germany. The apartment deposit is usually equal to 1 – 3 months of rent. Therefore, if your monthly rent is €1000, your deposit will likely be between €1000 and €3000.
Furnishings
In Germany, it is common for apartments to be unfurnished. No kitchen, no appliances, no bed, no nothing!
While short-term furnished apartments are increasingly popular amongst expats moving to Germany, long-term options are still largely unfurnished. As with many things, the cost of furnishing an apartment can vary greatly – however, with IKEA stores all around the country and a growing second-hand market through websites such as Kleinanzeigen, it can be done relatively cheaply.
When moving into an apartment in Germany, you often get the option of purchasing furniture (including the kitchen!) from the previous tenant – this can be a much more practical option than trawling around homeware stores for your furniture.
Buying an apartment in Germany
So far, we have looked at the cost of renting in Germany. However, here are recent average figures if you plan to buy property in Germany:
€6014 per square metre for a city centre apartment. For 60 square metres, you can expect to pay €360,840 on average.
€5057 per square metre for a suburban apartment. For 60 square metres, you can expect to pay €303,420 on average.
As with renting, the purchase price of property varies widely across Germany with the likes of Munich (€11,158 per square metre in the city centre and €8,184 per square metre in the suburbs) distorting the averages somewhat.
If you are looking to buy property in Germany, then we recommend exploring this mortgage calculator from Hypofriend. Simply enter your figures and get a quick overview of expected borrowing costs for different fixed-term periods.
2️⃣ The Cost of Health Insurance and Social Security Contributions in Germany
After accommodation, a second hefty expense in Germany is health insurance and social security contributions. These are mandatory for regular employees in Germany and are automatically drawn from your paycheck. As you can see below, health insurance and social security contributions take a hefty chunk out of your take-home pay as an employee (approx. 20% of your gross salary):
Health Insurance (Krankenversicherung) – 7.3% of your salary.
Pension insurance (Rentenversicherung) – 9.3% of your salary.
Long-term care insurance (Pflegeversicherung) – 1.7% of your salary.
Unemployment insurance (Arbeitslosenversicherung) – 1.3% of your salary.
In return for paying these insurance contributions as an employee, you receive extensive social services in the event of sickness, unemployment or old age. As an employee in Germany, you are auto-enrolled in the pension, long-term care, and employment insurances – the only flexibility you have is with choosing your health insurance provider prior to starting work. With regard to health insurance for regular employees in Germany, our favourite provider is TK Public Health Insurance.
On the other hand, if you are self-employed or a freelancer in Germany, you are only obligated to take out health insurance (Krankenversicherung). You are not required to pay the pension, long-term care, and employment insurance. If you are young (approx. 30), fit and self-employed, then a German health insurance policy will set you back around €400 per month. An equivalent policy for a self-employed 60-year-old will likely cost around €800 per month. Check out Feather Private Health Insurance to find out exactly how much you will need to pay in health insurance contributions as a self-employed worker or freelancer living in Germany.
For a detailed overview of health insurance in Germany, and what policy is suited to your situation, see our German Health Insurance Guide.
3️⃣ The Cost of Income Tax in Germany
As well as the insurance and social security contributions listed above, income tax will also be automatically drawn from your gross salary. Germany has a progressive tax system, meaning that you pay a higher rate of tax the more you earn. PwC has laid out the income tax you can expect to pay on different portions of your salary in 2024:
€0 – €11,604: You have a tax-free allowance in Germany meaning that the first €11,604 you earn in a financial year is not taxed.
€11,605 – €66,760: Income earned above €11,604 will start being taxed at 14% and will rise incrementally to 42%.
€66,761 – €277,825: Income earned above €66,761 will be taxed at 42% up until €277,825.
Above €277,826: Income earned above €277,826 will be taxed at 45%.
But what does this look like in real terms? Based on an average annual salary in Germany (€47,700), you can expect to pay roughly one-third of your salary towards income tax and health insurance/social security contributions.
When assessing the cost of living in Germany in 2024, it is important to acknowledge that Germany’s high level of taxation and social security will impact your take-home pay, leaving you with less in your pocket than you may have anticipated for accommodation, transport, food and drink, etc.
4️⃣ The Cost of Transport in Germany
Transportation costs are an important component of any cost of living analysis. After all, we all need to get around in our day-to-day lives. As with accommodation, transport costs vary tremendously in Germany based on what options are available to you.
Cycling
By far the most affordable means of transport is pedal power. With a few carbohydrates on board, you can keep the wheels turning at no cost aside from routine bicycle maintenance.
You will of course have the initial outlay when purchasing your bicycle. But with decent second-hand options starting from around €50 and new, reliable bikes available from around €250, this is a fairly modest investment for potentially countless hours in the saddle.
While cycling may be uncommon or even treacherous in your home country, it is a wildly popular and effective form of transport in Germany. Most cities and towns are well-designed for cyclists and have the necessary infrastructure in place to ensure it is a safe way of getting around.
Public Transport
As well as cycling infrastructure, Germany is also world-leading with regard to its public transport network. Whether you are needing to traverse the whole country or just get across your local city, Germany has high-quality rail, underground, metro, bus and tram services.
And best of all, public transport in Germany is very affordable. According to Numbeo, the average cost for a single ticket on local transport currently stands at €3 while a one-month pass allowing unlimited local transport will cost you just €49 (Deutschland-Ticket).
Taxis
Due to its extensive public transport network, Germans tend to use taxis for specific purposes (e.g. an airport transfer or nighttime travel) rather than as a day-to-day means of getting around. After all, they are considerably more expensive than jumping on the nearest metro, tram or bus.
However, if you are someone who takes lots of taxis, then you will not be stung with any unexpectedly high fares as the industry is fairly stringently regulated across Germany. While it fluctuates slightly across Germany, you can expect a base fare of around €3.50 and then an additional €2 fee for every kilometre travelled.
Taxis are always equipped with a meter, allowing you to easily keep tabs on what the journey is costing.
Car ownership
For most expats living in Germany, the public transport network satisfies all their transport requirements, whether that be for commuting or leisure. Therefore, car ownership is not as common in the expat community. However, if you are to buy a car in Germany, here are some of the costs you can expect:
Car purchase
The average price of a new car in Germany is €37,790 while an average used car will set you back €18,750 if purchased from a car dealership or €13,310 if purchased from a private seller.
Once purchased, you will need to register the vehicle, purchase number plates and buy an emissions sticker. This should cost you no more than €100.
Car insurance
On average, you can expect to pay approximately €330 a year for fully comprehensive car insurance in Germany, although this can be as high as €1000 a year depending on car type.
Vehicle tax
The amount of vehicle tax you need to pay in Germany is dependent on the power of your car and its emissions levels. However, for most vehicles, you can expect to pay around €110 a year.
Fuel
With the ongoing energy crisis, the price of fuel in Germany is continually fluctuating. In the last 12 months, diesel prices have fluctuated between €1.58 per litre and €2.32 per litre, while petrol prices have fluctuated between €1.65 per litre and €2.20 per litre.
With such large price sways, this will have a significant impact on the price of car ownership in Germany (especially if you are someone who racks up significant mileage).
Inspections
In Germany, your car must pass a roadworthiness inspection every two years, called the HU (Hauptuntersuchung). This inspection usually costs between €100 and €150.
5️⃣ The Cost of Food and Drink in Germany
Whether you solely buy groceries to prepare at home or are a fan of dining out, this section will look at the cost of food and drink in Germany in 2024.
Grocery Shopping
Compared to many of its neighbours, Germany enjoys low food prices. With its huge agricultural industry, Germany produces many of its own goods and is in fact the largest producer of milk, potatoes and pork in Europe (Bratwurst anyone?!). Therefore, you can expect very reasonable prices at supermarkets across the country.
There is not much fluctuation in prices between regions, although city-centre supermarkets will often tack on a little extra. Whether you are in Hannover, Dresden or Munich, here are recent figures from Numbeo showing what supermarket prices you can expect in Germany in 2024:
1 litre of milk: €1.08
1 kg of potatoes: €1.52
Loaf of bread: €1.91
1 kg of rice: €2.71
A dozen eggs: €3.30
1 kg of apples: €2.37
1 kg of bananas: €1.31
1 kg of chicken fillets: €15.68
1 kg of local cheese: €12.22
A standard bottle of wine: €5.00
A 500 ml local beer: €0.91
These are of course just average prices across the country and the total value of your monthly shop will be largely determined by the size of your household, how much you eat and drink, and whether or not you opt for premium produce. But to give you a rough idea of expected monthly costs, a 1-person household will likely spend €200 – €300 a month on groceries.
While you will not find large price fluctuations between regions, you will find considerable price differences between supermarket chains. Most notably, you can expect cheaper prices in discount supermarkets such as Netto, Lidl, Aldi and Penny, more standard pricing in the likes of REWE, EDEKA and Kaufland, and higher pricing in organic supermarkets such as Alnatura or Denn’s Biomarkt.
Dining out
While supermarket prices are low in Germany, the vast majority of people still enjoy dining out and going for drinks with friends and family. As with grocery shopping, eating out does not break the bank in Germany. Here are some average prices that you can expect:
€12 for a main course and drink at a cheap restaurant.
€30 for a 3-course meal at a mid-range restaurant.
€4 for a 500 ml German beer.
€2.65 for a soft drink.
€10 for a cocktail.
€3.25 for a cappuccino.
6️⃣ The Cost of Banking in Germany
The cost of banking in Germany is largely determined by what banking services you are needing.
With the rise of online banks such as N26 and DKB, it is free to set up and maintain a standard current account in Germany. Online banks generally offer a free debit card, free ATM withdrawals, and a range of budgeting and analysis tools – in short, they cover what you need from a day-to-day transactional account.
If you are wanting in-branch services or more advanced savings, investment or borrowing services, then a high-street bank will be more suitable than an online bank. Popular choices include Deutsche Bank, Commerzbank and Sparkasse – with these options, you will generally incur monthly account fees (€5–€10), limited free ATM withdrawals and sporadic English customer support. Access to credit is possible (unlike with most online banks), although high street banks will usually charge around €20 a year for this access.
For an overview of the best banking options in Germany, see our German Banking Guide.
7️⃣ The Cost of Childcare in Germany
States-subsidised daycares (Kinderkrippe and Kindergarten/Kita)
As in many countries, Germany has a chronic shortage of childcare. While every child over one is legally entitled to a place at a state-subsidised daycare in Germany, there simply are not enough spaces to go around. German parents take this seriously, often securing spots for their little nippers before they are even born.
If you are lucky enough to secure a spot in a state-subsidised daycare, then you will likely need to pay a modest monthly fee of €70–200 per child, although states such as Berlin and Hamburg have made this completely free. Some states provide a certain number of hours per month for free, some just charge for food and additional services, and some set their rates based on your family’s income, the number of children you have and the age of your children. As you can see, there is no centralised fee structure for German daycare centres – the fees are set by either the state or the institutions themselves.
Private daycares
Partly due to the immense pressure on places at state-subsidised daycares in Germany, some parents choose a private daycare instead, especially if you are needing longer hours or would like your toddler to attend a bilingual daycare. As you can imagine, private daycares are not cheap in Germany, and will often cost north of €1000 per month (ouch!).
Childminder (Tagespflege)
Outside of daycares, certified childminders are a popular form of childcare in Germany. In most cases, this will involve you leaving your child at the house of a childminder, usually with a number of other children (a maximum of five children per childminder is permitted in Germany).
Expect to pay up to €600 a month for leaving your kid in the care of a childminder.
Other childcare options
The options listed above all involve you dropping your child off somewhere. If you would prefer in-house childcare, then you really have three options in Germany:
Nanny – In Germany, a nanny will most often be a qualified childcare professional that comes to your home to look after your children. A nanny is contracted as your employee meaning you are responsible for their salary as well as tax/health insurance contributions. As nannies are treated as regular employees, you can expect to pay them at least €2000 a month for a 40-hour work week.
Au Pair – In Germany, an au-pair is usually a live-in worker that assists with childcare and light housework. While you are only required to pay an au pair €280 per month, you will also be expected to cover their accommodation, meals and health insurance.
Babysitter – In Germany, a babysitter is someone who provides casual childcare on an as-needed basis. You can expect to pay around €10 an hour for this service.
8️⃣ Cost of Education in Germany
Once your child reaches six in Germany, they will start school – you can now breathe a sigh of relief as you have successfully navigated the competitive, confusing and often expensive childcare system. From here on in, you can really pay as much or as little as you wish for your child’s ongoing education.
In Germany, both state primary and secondary schools are completely free. You are only required to cover the cost of stationary, school trips, etc.
And the good news continues when it comes to higher education in Germany – German public universities do not charge tuition fees for undergraduate degrees (although you may be charged a small fee per semester to cover administrative costs).
As in most countries, there is always the option of attending an international school. If you would prefer that your child attended an international school rather than a German public school, then this is going to cost you. Expect to pay €15,000 – €20,000 a year for your child’s education at an international school in Germany.
And if your child then opts to attend a private university in Germany (rather than a free German public university), they can expect to pay up to €30,000 a year in tuition fees for an undergraduate degree.
Average Salary in Germany
The cost of living in any country is of course proportionate to what you are likely to earn in that country. For example, while Scandinavian countries may seem expensive, residents earn very high average salaries so end up spending a smaller proportion of their income on costs. On the hand, if you earn a small salary in a country with average costs, then you may in fact be worse off relatively speaking.
As mentioned above, an average resident in Germany can expect to incur roughly €1200 – €3000 per month in costs. Let us see how this matches up with average gross salaries across the country:
Berlin – €3,168 per month.
Munich – €3,780 per month.
Frankfurt – €3,773 per month.
Hamburg – €3,475 per month.
Cologne – €3,501 per month.
Stuttgart – €3,754 per month.
To see more salary data for Germany, including how much you can expect to get paid for a particular job in a particular part of Germany, check out gehaltsvergleich.com and gehalt.de.
Whether these average salaries are sufficient to live comfortably in Germany, is largely dependent on lifestyle and priorities.
For example, if you live in a one-bed apartment on the outskirts of Hamburg and keep to the average expenses listed above, then you will likely have a decent wad of cash left over at the end of every month (even after taxes, insurance and social security contributions) if you are earning the average salary of €3,475 per month.
However, if you live in a city-centre apartment in Munich, have a car, dine out frequently and have children, then it is highly unlikely that an average salary of €3,780 per month will come close to covering your expenses.
How to Lower your Cost of Living in Germany
If your salary does not currently stretch far enough each month or your costs are gradually getting out of control, then here are some decisions you can make to live more cheaply in Germany. While some of these may require considerable changes to your lifestyle, they are all effective measures for lowering your cost of living in Germany.
Choose cheaper accommodation
While that swanky city-centre apartment may make you feel happy, it may make your bank account feel very sad indeed. Consider living in less central areas where apartments are considerably cheaper – it is not uncommon for a suburban apartment to be half the price of what you will find in the city centre.
And as most German cities and towns have superb public transport, you will find that you can quickly and affordably access the entire city even if you are living a little further out.
If you would like to take things one step cheaper, then consider living in a shared apartment with roommates. Here you will not only benefit from cheaper rent but can also share day-to-day housing costs.
Use public transport or cycle
Owning a car in Germany can be a huge money pit. Purchase price aside, a car is going to cost you significant annual sums in fuel, insurance, tax and maintenance.
Public transport on the other hand is an economical option. For example, the popular Deutschland-Ticket costs just €49 per month and gives you unlimited transport on local transport services throughout Germany.
There is of course an even cheaper option for getting around Germany – the trusted bicycle! While you will need to make a small investment by buying a bike, you will then have unlimited free travel (aside from some routine maintenance). With many German towns and cities priding themselves on their bicycle infrastructure, cycling can often be a quicker, more healthy option for navigating your home town.
Use discount supermarkets
Everyone needs to eat, right? Well, this is one simple area where you can make decent weekly savings.
By opting to shop at Netto, Lidl or Aldi, you will knock a fair few euros off of your shop when compared with the likes of EDEKA, Kaufland or Alnatura. And remember to always browse the bottom shelf, as German supermarkets tend to stock the cheapest goods there.
Seasonal products are also priced much more cheaply in German supermarkets – so steer well clear of the strawberry aisle in winter!
Shop around for products and services
As in most countries, there is a multitude of options for products and services in Germany. Consequently, you will find considerable price fluctuations between services – here are some notable areas where you can make savings:
Gyms – memberships can be as cheap as €15 per month or as costly as €100 per month. Germany’s more affordable gym chains allow you to keep fit without breaking the bank.
Banking – in the age of online banks (such as N26 and DKB), there are free options to open and maintain a bank account in Germany. Therefore, it is possible to receive all your daily banking services in Germany at no cost.
Energy – you can change your energy provider yearly in Germany, and benefit from new customer discounts and bonuses. This is a quick-fire way of saving around €150 a year.
We hope you have found this article insightful for understanding the cost of living in Germany in 2024. While most costs are on the rise across the country, Germany remains a comparatively affordable place to call home, especially with regard to its rental market, food prices, transport network and education system.
For further information about moving to Germany, see our website guides covering everything from visas, insurance and banking to apartment hunting, finding employment and starting work.