Ultimate Guide to Cost of Living in Germany as an Expat

You might have been familiar with the saying that Europe is a land of opportunities, consisting of breathtaking cities and towns. But are you wondering what life in Germany really is like?

Here is the complete guide to the cost of living in Germany that helps you gain a quick virtual tour through the German nation.

What is the Cost of Living in Germany?

Germany has a high standard of living, but the best part is the cost of living in Germany is quite low and affordable - compared to 50% of Western European countries.

Many expats claim that the average cost of living in Germany for an Indian family is typically around €1,500 - €2,000. Further, let us understand the contribution of individual factors to calculate the cost of living in Germany for foreigners

1. Accommodation or Rent

Rent generally makes up most of your living expenses. The monthly accommodation charge in Germany varies based on the accommodation type and city.

Cost of renting a flat in Germany’s biggest cities are listed below

2. Transportation

Germany has got one of the best transportation systems in Europe that is affordable and well-connected. Using buses or subways would be the most efficient option as a single bus or tram would cost you around €1 - €2 and a monthly pass would average around €80 - €90.

Cost of monthly bus tickets in major cities in Germany

While the other options for transportation between cities might cost you around €20 if planned beforehand, however, might be pricey if done on the same day or just before the trip.

Taxi costs in Germany are regulated by the local authorities and are fixed for the entire city, offering no scope for negotiations. The cost of a taxi ride for a 2.5 - mile journey is roughly estimated for major cities in Germany as follows.

3. Food and Drinks: Groceries

The average monthly spending per household is at a maximum of €387 per month as the localities in Germany are full of homegrown (country) produce making the prices affordable and competitive.

4. Utilities

Utility expenses – electricity, gas, water, etc are generally covered as part of the rent (“kaltmiete”, the utilities not included in the rent, and “warmmiete” apartments, it is included in the rent).

In case you will have to take care of utilities then the average cost would be around €170 - €205 which includes heating, gas, electricity, internet, etc for a 480 sq ft house.

5. HealthCare in Germany

The German healthcare system works under a dual system i.e., public and private system, which is also known to be one of the most efficient systems in the world. Every resident is eligible for free healthcare in Germany, but few choose to take out private healthcare to top up state coverage.

In cases where the applicant is not eligible to become a resident while living in Germany, they will need to purchase private health insurance to access the country’s healthcare.

Also Read: Top 10 Highest Paying Jobs in Germany

6. Miscellaneous Expenses

Miscellaneous expenses cover various small but necessary daily costs, including household items and occasional treats. Monitoring and managing these expenditures is crucial for financial balance. A few of the prominent expenses that could be highlighted under this factor include:

Leisure and Entertainment: German households spend an average of €239 monthly on cultural and leisure activities, including Netflix, museums, and vacations. Cutting costs is possible by sharing accounts, visiting museums during discounted times, and enjoying free events.

Educational spending, primarily for further training and professional development, amounts to about €16 per month. University-related expenses can also be factored in.

Clothing: Attire holds significance, be it for work or leisure. In Germany, clothing expenses average around €93 monthly. Interestingly, work clothing can be tax-deductible, allowing a potential return on paid income tax.

What is Life in Germany for Foreigners?

Now that you have been well versed with the factors that influence your cost of living in Germany, next in the row is to answer the common yet generally overlooked question why put the effort to immigrate to Germany? Is it worth it?

Increasing foreign population in Germany

*Source: Statista

You would be happy to know that, apart from offering a high standard of living, tremendous career opportunities, affordable living expenses in Germany, and an international community, Germany also brings plenty of perks for immigrants looking to relocate there.

Here are the quick highlights of the German nation

• Being part of the European Union, Germany, all-in-all offers a strong sense of stability.
• The country is the 16th most peaceful and safest country in the world as per the Global Peace Index ranking 2023.
• Germany’s efficient governing system and reliable law enforcement policies, sustainability efforts, bring a sense of security to living in the country.
• Living in Germany is not difficult as about 56% of the German population has a good efficiency in English communication.
• Larger cities in Germany such as Munich, Berlin, Frankfurt, Cologne, and Hamburg, are mostly filled with English speakers.
• Along with these practical perks, you would also be happy to note that Germany is famously known as the cultural powerhouse of Europe offering a rich and diverse heritage to explore.

Tips to Enhanced Financial Management and Savings in Germnay

Now that you are familiar with the various expected costs and the possible alternatives for your day-to-day living in Germany. Moving ahead we have cumulated a few tips to ensure financial management and money savings through our stay in German land.

These strategies can help you cut costs while living in Germany:

1. Shared Accommodation: Opt for flat or house shares to save significantly on rent.
2. Student Housing: For students, affordable accommodation can be found in student residences, often around €300 monthly.
3. Student Discounts: Leverage student IDs for discounts at various places like restaurants, cinemas, and stores.
4. Travel Savings: Students under 27 can avail of a 50% discount on BahnCard50 for rail and bus travel. Some universities provide free travel cards.
5. Discount Supermarkets: Explore German discount supermarkets like Lidl, Aldi, Netto, and Penny for economical grocery shopping.
6. Opt for a SIM-only plan to reduce mobile contract expenses. Utilize internet-based messengers like WhatsApp for texting. Ensure stable WiFi if going SIM-only.

What are the Pros and Cons of living in Germany?

Moving further it is as well crucial to weigh the advantages and disadvantages of living in Germany as an expat. Like every other country, Germany has its own pros and cons, which have been listed below

a. Pros of living in Germany

1. High career opportunities
2. Effective public transportation network
3. Safety - Low crime rate
4. Natural Beauty – Lots of greenery to live and explore
5. Well-structured and competitive social welfare structure

b. Cons of Living in Germany

1. Delays caused due to “red tape” in Germany
2. Winters in Germany are very cold
3. Germany offers the best public healthcare and education facilitation, but this might have you contribute through high tax rates in the country (based on your income)
4. Sundays are off days for everyone in Germany except petrol stations

Also Read: Guide to the Ultimate Benefits of Working in Germany

Visa Requirements to Live in Germany from India

Moving further let us understand what are the visa/ stay requirements for living in Germany. As Indians are non-EU citizens you would need a resident permit visa before moving to Germany.

Other requirements include language proficiency, sufficient funds, proof of accommodation, etc. Also as part of visa requirements to Germany, you would also require to have health insurance coverage.

What is Meant by Anmeldurg in Germany?

Upon reaching and settling in Germany, you would have to register your address (in case you will live in the country for more than 90 days).

This process is termed the Anmeldung, and every individual needs to complete this process prior to opening a local bank account, signing up for health insurance, or even setting up their Wi-Fi.

Secure a Job and Settle in Germany Without a Hitch With GetGIS Assistance

Germany is a popular destination for both working professionals and students worldwide. The country's initiatives, like the "reunification of families" policy, allow residents to bring their relatives to Germany if they have a residence permit.

How GetGIS assists your immigration to Germany!

• We help calculate your eligibility on your behalf to eliminate any chances of visa refusal.
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Why delay further? Start your career in Germany with GetGIS by booking a free consultation today!

Useful Links

1. How To Apply For Germany Job Seeker Visa From India
2. How To Get Job in Germany From India in 10 Simple Steps
3. Top 10 Part Time Jobs in Germany for Indian Students