Cost of Living in Germany

Germany's cost of living is moderate by Western European standards, with significant regional variation. Your choice of city dramatically impacts your budget.

Monthly Budget Overview (2026)

Expense	Munich/Frankfurt	Berlin/Hamburg	Leipzig/Dresden
Rent (1BR)	€1,500-2,000	€1,000-1,400	€700-1,000
Utilities	€200-300	€180-250	€150-200
Groceries	€300-450	€250-400	€200-350
Health Insurance	€400-800	€400-800	€400-800
Transportation	€50-100 (public)	€50-90	€50-80
Internet/Mobile	€50-80	€50-80	€50-80

Note: Rent prices rose 3-4% in 2026, with larger cities seeing 8% increases due to housing shortage.

Key Cost Factors

Housing is your biggest expense. Rental market is tight in major cities with lengthy wait times. First-time renters typically need:

Security deposit: 2-3 months rent
Proof of income (3x rent minimum)
SCHUFA credit report
Often unfurnished (no kitchen!)

Healthcare is mandatory. Under €69,750 annual income: public insurance (€400-1,000/month, employer pays half). Above threshold: option for private insurance (€150-600/month).

Transportation is excellent. Monthly public transit passes: €49-100. Car ownership expensive (insurance €800-1,500/year, fuel €1.80-2.00/liter).

Food costs are reasonable. Discount supermarkets (Aldi, Lidl, Penny) offer great value. Weekly groceries for one: €50-80.

Tips for Managing Costs

Apply for WBS (Wohnberechtigungsschein) for subsidized housing if income qualifies
Use public transit - comprehensive and reliable
Shop at discount supermarkets
Get liability insurance (Haftpflichtversicherung) - essential and cheap (€60/year)
Consider smaller cities for better quality of life per euro

Pro Tips

•Munich and Frankfurt are 30-40% more expensive than Berlin
•Apartment hunting requires patience - start 2-3 months early
•Get SCHUFA report immediately for rental applications
•Public insurance covers family members at no extra cost
•€49 Deutschland-Ticket provides nationwide public transit

Cost of Living