Over the past two years, Germany has been grappling with a high inflation rate, fueled by the ongoing war, soaring oil prices, and the lingering effects of the pandemic. This trend is likely to persist for the next couple of years. Yet, even amidst these economic challenges, managing household expenses doesn’t become overly strenuous for German employees. The cost of living varies significantly from city to city across Germany, with some cities being more expensive than others. For instance, Berlin stands out as one of the more costly cities compared to its counterparts.
In this European nation, an individual’s expenses are largely dictated by their lifestyle choices. Typically, Germany offers an abundance of high-quality facilities, which naturally come at a price. To take full advantage of these top-notch amenities, a German citizen usually spends between 900 to 1900 euros. For a family of four, the expenditure ranges from 3500 to 4000 euros. However, these figures can fluctuate depending on varying lifestyle preferences.
Rental cost in Germany
Rental costs fluctuate significantly from one city to another. In bustling metropolises like Berlin, Munich, and Frankfurt, you’ll find yourself spending considerably more. Conversely, cities such as Bremen and Leipzig offer a more budget-friendly rental market.
In the pricier urban areas, securing a one-room apartment can set you back between 1050 and 1350 euros per month. Meanwhile, in more affordable locales like Bremen and Leipzig, a similar apartment can be rented for a more modest 550 to 700 euros monthly. Additionally, it’s worth noting that renting in city centers tends to be costlier compared to suburban areas.
Property cost in Germany
Property costs in Germany vary widely from one city to another, with Bavaria standing out as particularly expensive.
In Munich, the cost of property reaches up to 12,000 euros per square meter. In vibrant cities like Berlin, Frankfurt, and Hamburg, purchasing property costs between 8,000 and 9,000 euros per square meter. Meanwhile, in cities such as Dortmund, Cologne, and Stuttgart, property prices range from a more modest 3,500 to 7,500 euros per square meter.
Utility Cost in Germany
In Germany, utility costs are typically included in the house rent, removing the need for a separate utility bill. However, in many rental agreements, utility bills are charged separately.
Rent that does not include utility bills is known as Kaltmiete or cold rent, whereas rent that includes utility bills is called Warmmiete or warm rent. Naturally, warm rent tends to be higher.
Utility bills usually cover electricity, gas, water, and waste disposal. Across Germany, utility costs are generally consistent, averaging around 300 euros for an 85 square meter apartment. However, prices for TV and internet services vary by region, with specific rates as follows:
Internet
For a speed of 100 Mbit/s, the cost is approximately 35 euros.
Electricity
If you are on a cold rent agreement, you will separately pay for electricity, typically ranging from 50 to 75 euros.
TV Tax
Germany requires a specific TV tax, although exemptions may apply. On average, this tax amounts to 18.35 euros.
Mobile Phone
Expenses for mobile phone services range from 10 to 40 euros.
Apartment diposit
When renting an apartment, tenants are required to provide a security deposit to the landlord. This deposit serves as a safeguard against any potential damage to the property during the rental period. Should any damage occur, the landlord will use a portion of the deposit to cover repair costs. Conversely, if no damage is found, the entire deposit will be refunded to the tenant’s bank account upon vacating the apartment.
Typically, the security deposit amounts to three times the monthly rent.
Food cost in Germany
In Germany, an employed person typically allocates 15% of their income towards food expenses. For a single individual, monthly food costs can vary up to approximately 250 euros. However, for a family of four, food expenses can range from 700 to 800 euros per month.
Dining at restaurants incurs additional expenses. The cost per person for a meal at a restaurant ranges from 20 to 45 euros. If opting for German beer at a restaurant, the expense amounts to around 3.5 euros per bottle.
Grocery cost in Germany
Excluding food items, one often needs to budget quite carefully for other groceries. On average, monthly expenses for non-food groceries typically range from 70 to 100 euros.
Here are the prices of various grocery essentials:
– Milk (1 liter): 1.8 euros
– Eggs (12): 3.05 euros
– Rice (1 kg): 2.46 euros
– Chicken (1 kg): 12.47 euros
– Beef (1 kg): 14.93 euros
– Onion (1 kg): 1.50 euros
– Potato (1 kg): 1.52 euros
– Tomato (1 kg): 1.69 euros
– Bread (500 mg): 1.90 euros
Healthcare cost in Germany
In Germany, nearly every individual benefits from German health insurance. Employees have 14.6% of their total salary deducted for health insurance. Conversely, self-employed and freelancers must opt for private health insurance. Healthcare costs generally vary depending on factors like age and various illnesses. On average, a German spends around 100 euros on healthcare costs.
Transportation cost in Germany
During the daytime in Germany, there’s a noticeable hustle and bustle as people commute to various destinations for their diverse needs. In this busy urban environment, it’s essential to arrange for suitable transportation.
Options include bicycles, bikes, public transport, taxis, or personal cars. In crowded cities, bicycles are a viable option. Owning your own bicycle is advantageous, but if not, you can rent one from a bike service for approximately 5-6 euros per month.
For those opting for public transport, the monthly cost averages around 60 euros. Taxis are available based on distance, typically costing 2-3 euros per kilometre.
Another choice is using a personal car, though it’s important to note current gasoline prices range from 1.95 to 2.20 euros per litre. Purchasing a new car incurs a registration fee of 50 euros. Additionally, annual car insurance costs can range from 250 to 550 euros.
In Germany, 72% of the population prefers using personal cars for transportation.
Education cost in Germany
In Germany, students from EU countries are exempt from university tuition fees. However, they are required to pay semester fees, which typically range from 70 to 90 euros per semester.
Primary and secondary schools do not charge tuition fees. However, attending international schools in Germany can be considerably more expensive. The annual cost for international schools in Germany can reach up to 12,000 euros.
Insurance, Taxes and Pension
In Germany, approximately 35% of your income is withheld for taxes, insurance, and other expenses.
