Many highly skilled expats are attracted by Germany’s standard of living and exciting job opportunities. But how much would it cost to move to Germany? Would the salary be enough to cover basic needs? Is Germany expensive? Below you will find essential information about the cost of living in Germany which can help you find the answers to these and other important questions.
Expats in Germany
Research shows that the country needs between nearly 290,000 and 370,000 skilled foreign workers per year until 2040 to make up for its ageing workforce. No wonder that Germany actively competes for foreign talent.
When calculating how much it costs to move to Germany as an expat, one should keep in mind that the country offers great work-life balance and high quality of life while keeping its prices moderate. In fact, the cost of living in Germany is only the 10th highest in the EU. It is cheaper than in all its neighbouring countries (except for Poland and the Czech Republic) and other European destinations popular among expats, such as the UK, Ireland, the Netherlands, or France.
Across Germany standards of living vary. In larger cities such as Berlin, Hamburg, and Munich, rent, a major item in a household budget, is much higher than, for example, in Leipzig or Cologne, but the situation might be the opposite for other expenses. To help you understand how much it would cost to move to Germany, we have selected Berlin and Leipzig to represent the higher and lower end of the scale.
But before we proceed to evaluate an average cost of living in Germany, let us first look at the level of income typical for the German labour market.
Salaries
In 2025, those living in Germany can expect to earn an average gross salary of €54,000, which translates into a monthly €4,500 gross or €2,850 net income.
In Germany, a higher standard of living is also maintained through statutory minimum wage, which for 2025 is set at €12.82 per hour, or around €2,200 a month in a full-time job.
Average salaries in Germany
| Profession | Annual gross salary, € | Monthly net salary, € |
|---|---|---|
| Data scientist | 63,000 | 4,200 |
| Cybersecurity specialist | 65,000 | 4,300 |
| IT consultant | 70,000 | 4,650 |
| Marketing manager | 62,000 | 4,100 |
| Network administrator | 50,000 | 3,400 |
| Project manager | 68,000 | 4,500 |
| Software engineer | 65,000 | 4,300 |
As you can see, any of the above professions in Germany offers a standard of living higher than the average. This is especially important for those expats who need to send money to their families back home.
Besides income tax, expats living in Germany must pay for statutory health insurance. The contributions are 14.6% of a gross salary equally divided between the employer and the employee, plus a surcharge whose limit for 2025 is 2.5%.
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Groceries and eating out
After a sharp increase in prices in 2022-2023 (up to almost 9%), last year Germany managed to bring the inflation down to 2.4%. and the forecast for 2025 is even lower, at 2%, which means that the cost of living in Germany should remain relatively stable.
Food expenses in larger German cities tend to be lower than in smaller ones, as demonstrated in the table below.
Prices for basic food items, €
| Grocery type | Germany | Berlin | Cologne |
|---|---|---|---|
| Bread | 1.91 | 1.15 | 1.12 |
| Rice, 1kg | 2.94 | 3.20 | 3.21 |
| Chicken fillets, 1kg | 12.70 | 10.10 | 14.43 |
| Potato, 1kg | 1.41 | 1.82 | 1.37 |
| Milk, 1l | 1.10 | 1.15 | 1.12 |
| Banana, 1kg | 1.50 | 1.83 | 1.48 |
| Apples, 1kg | 2.70 | 2.81 | 2.65 |
| Eggs, 12 | 3.22 | 3.14 | 3.60 |
| German beer, 0.5l bottle | 0.92 | 1.09 | 0.91 |
| Total | 28.4 | 26.29 | 29.89 |
The same is true when it comes to prices at restaurants and cafes.
Cost of dining out, €
| Your order | Berlin | Leipzig |
|---|---|---|
| Regular meal for one | 15.00 | 12.00 |
| Meal for two, mid-range restaurant | 70.00 | 60.00 |
| German beer (draught, 0.5l) | 4.20 | 4.20 |
| Soft drink | 2.81 | 2.72 |
| Bottled water (0.33l) | 2.59 | 2.62 |
Transportation
Germany has one of the best public transport systems in Europe and introduced a nationwide ticket (Deutschlandticket) in 2023, which covers most of the trips. In 2025, the ticket costs €58 per month. This option can substantially reduce the cost of living in Germany for frequent commuters. As of 1 January 2025, fares have increased in most major cities. For example, in Berlin the price of a single ticket is €3.80, 7.5% higher than last year. Public transport in Hamburg is even more expensive, starting with €3.90 for a single ticket. In other words, public transport expenses can be a major part of an average cost of living in Germany.
There are also situations when calling a taxi is the only alternative. This is how much one may expect to pay for a taxi in Berlin and Leipzig.
Average taxi fares, €
| Fares | Berlin | Leipzig |
|---|---|---|
| Start | 5.00 | 3.50 |
| 1km | 2.30 | 1.70 |
| 1 hour waiting | 37.00 | 24.00 |
| 10km ride | 28.00 | 20.50 |
At the same time, many people living in Germany turn to riding a bicycle to save on commuting. The country has everything a cyclist needs, from a network of dedicated lanes to bike-sharing services, and one can rent a bicycle for around €15 a month or buy second-hand for as little as €50.
Rent
One of the most important questions for any expat: how much is rent in Germany? The answer depends on many factors, from location and size of the property to connectivity and the local economy.
Monthly rent in German cities, €
| Location/flat | Berlin | Leipzig | Munich | Hamburg |
|---|---|---|---|---|
| Central | ||||
| 1-bedroom | 1,230 | 720 | 1,430 | 1,130 |
| 3-bedroom | 2,180 | 1,360 | 2,790 | 2,110 |
| Suburban | ||||
| 1-bedroom | 910 | 510 | 1,190 | 780 |
| 3-bedroom | 1,670 | 960 | 2,150 | 1,490 |
Remember that besides the actual rent, you will also have to pay a deposit when signing a tenancy agreement; the deposit usually equals 1-3 monthly rents.
Other home-related expenses contributing to cost of living in Germany include utilities, such as water and electricity, which are rarely covered by the rent. In 2025, the average electricity tariff has increased to €0.0315/kwh, which adds around €40 to an annual bill of a standard family household. As a tenant living in Germany, you will also likely have to arrange for the internet connection. The plans vary from 16 Mbit/s to 1,000 Mbit/s at a monthly cost of €20-€80. There is also a public broadcasting service fee of €18.36 per month per household.
So, is Germany expensive? In the end this depends on your needs and lifestyle. There are plenty of ways to save money though, such as eating in, riding a bike, or avoiding central locations when renting. And if you earn enough to be supporting your loved ones back home, a great way to save on remittances is to use Profee, an online money transfer service with the best foreign exchange rates on Indian rupee, Nigerian naira, Kenyan shilling, Philippines peso, and dozens of other currencies. In addition, it offers zero fees on the first transfer and runs a generous referral programme. Try it now to start sending, saving, and earning money, all with one service!
