Germany remains popular for expats, digital nomads, professionals, and even those looking to retire abroad. With an economy that continues to hold strong even as the cost of living and inflation rise, Germany can still be a relatively affordable place to settle if you are looking to relocate.
When I moved to Germany back in 2019, there was much I hadn’t considered, like how many apartments don’t come with a fitted kitchen—an expense I couldn’t wrap my head around. Being prepared and having a budget in mind will make your decision-making and transition smoother.
Remitly understands that things are always changing, and we have updated our cost of living guide to reflect new costs and information for Germany in 2025.
What is the overall cost of living in Germany in 2025?
According to Numbeo, the overall cost of living in Germany is 1.2% lower than in the UK, with rent an average of 32.4% cheaper. Compared to Spain, however, the overall cost of living is 25.2% higher in Germany.
In Germany, over half of all households are renters. With strong protections for tenants’ rights, even as costs rise, Germany remains a great place for those looking to settle and rent long-term, although affordability is increasingly strained in major cities.
Food prices have risen by 2.8% and services have increased by 3.9% in a year as of April 2025.
While life in Germany remains overall more affordable than in some countries, it’s best to go in with a thorough understanding of your budget and lifestyle needs.
Cost of housing
Housing can eat up a significant amount of your budget. By comparing bigger cities to smaller towns, you can find a gem that is exactly in your price range.
You may also consider whether you prefer living in the center of it all or if living a little farther out from the city is worth it.
Average one-bedroom city-center rent prices in major cities:
- Berlin: €1231.90
- Frankfurt: €1327.83
- Munich: €1466.55
- Stuttgart: €1152.22
- Cologne: €1052.94
- Dusseldorf: €1048.95
- Hamburg: €1142.36
You’ll find that prices in smaller cities or villages can take up less of your budget when it comes to rent, but it all depends on what you’re looking for and need—if a big city isn’t a necessity, you might look to places with fewer people and a bit more nature.
For instance, in a smaller city like Nuremberg, a one-bedroom apartment averages €848.25. In an even smaller town like Amberg, a one-bedroom apartment averages €545 per month.
When looking at an apartment for rent, it’s important to note whether you’ll be paying “warm” or “cold” rent. Warm rent typically includes certain utilities or maintenance expenses, whereas cold rent does not.
Going over exactly what’s included before signing a rental contract will help you avoid any unexpected costs.
Additional housing costs:
- Utilities and maintenance fees: These fees are determined by what’s included in your rent (warm or cold). Many apartments share the responsibility of cleaning the hallways and maintaining the grounds, but others may have a dedicated maintenance team.
At the end of each year, your landlord might provide you with a utilities statement (Nebenkostenabrechnung), which will go over what you’ve already paid for the year, what your landlord is expected to pay, and the difference, if any, that you may owe.
In some cases, you may get some money back!
On average, electricity could cost about €116 per month, and gas could go as high as €150—though this can vary significantly depending on factors like apartment size, efficiency, and usage.
- Property taxes: Unless you become a long-term tenant, property taxes should be covered by the landlord and calculated accordingly into the rent.
Although not calculated as a flat percentage of market value, property taxes in Germany usually translate to less than 0.5% annually for most properties.
- Unexpected costs: Life in other countries can cause a bit of culture shock. What’s normal in one place isn’t in another. While on the hunt for your new place, you may be surprised to see that many apartments don’t come with a fitted kitchen (though it is becoming more common).
This means you are responsible for installing the appliances, sink, cabinets, and other fixtures. It’s a cost that many are unaware they must factor in.
If you can’t afford to install a new kitchen yourself, it’s best to look for apartments that come with one or where the previous tenant is willing to sell or pass the existing one on to you.
Rent in Germany may not be as high as in other countries, but it is on the rise. The competitive housing market has been driving up rental prices for a few years now, making the rental market quite competitive—something to keep in mind.
Food and grocery expenses
Germans love a farmer’s market, and you will often find them in the city centers all year round. You’ll also find supermarkets like Lidl and Aldi, and larger supermarkets like REWE and Edeka, that offer a good variety.
On average, monthly grocery costs for individuals range from €200 to €300, while families spend between €400 and €600.
Here’s a breakdown of common staples:
- Fresh loaf of white bread: €1.93
- Milk (1 liter): €1.11
- Eggs (a dozen): €3.33
- Apples (1kg): €2.78
- Potatoes (1kg): €1.37
- Chicken fillets (1kg): €12.27
*Average prices found on Numbeo.
If you love dining out, the good news is this won’t necessarily break the bank. Traditional German restaurants often serve daily menus that, on average, cost between €15 and €20. If you are looking for something more high-end, costs could start around €50 per person.
Transportation costs
In 2023, Germany introduced the Deutschland Ticket. As of 2025, for €58, you can use this to travel on any local public transport and regional trains across the entire country. For example, you can go from Nuremberg to Berlin all on regional trains without paying any extra costs.
The Deutschland ticket is a great option and may be more cost-effective depending on how much and how far you normally travel. A monthly pass in Berlin costs €106.50; in Munich, depending on the zone you live and work in, the monthly ticket starts at €68.40.
Germany is renowned for its public transportation, making it easy and accessible to navigate cities and the countryside. If you’re looking for an even more affordable or greener way to get around, many cities have bikes that you can rent for a few minutes or an entire day.
If you have or prefer a car, currently the average cost per liter is €1.73. Remember that owning a car will incur additional expenses, as you will need insurance and pay for any required maintenance.
Healthcare and insurance
Health insurance is mandatory in Germany. If you’re relocating due to your job, your employer will provide and cover a portion of the cost of health insurance. However, if you’re a freelancer or looking for more coverage, it’s important to understand the differences between public and private health insurance and what they provide.
Public health insurance, for example, will be calculated based on your previous year’s salary. Techniker Krankenkasse (public) has a minimum monthly contribution of € 212.84 and a maximum of € 939.89 for health insurance with sick pay. Each year, you’ll need to provide new tax information, and your contributions will be updated accordingly.
If you’re looking for private health insurance, the monthly payment for complete coverage can go as high as €700. It’s best to shop around and understand how often they increase contribution rates to ensure any increases remain within your budget.
When looking at healthcare coverage, note whether your plan will cover sickness and if a portion is going to Social Security. Public health insurance calculations will automatically put a percentage of your monthly payments towards social security and care.
Education and childcare
Germany offers a wide range of excellent educational options that are both affordable and accessible.
State-run kindergartens and nurseries, also known as “Kitas,” can cost between €100 and €400 a month for state-run nurseries. Private nurseries could cost up to €1300 per month. Spaces are limited, so it’s best to get your name on a list as soon as you have decided where you would like to settle with your family.
Public schools are also free for residents, but you may need to pay for books and other supplies. If you prefer an international school, it could cost as much as €40,000 per year, depending on the school and program.
As for university students, on average, a private institution could range between €5000 and €20,000 per year. Public universities generally don’t charge tuition fees and just have low semester fees of €100-350 per semester to cover administration costs.
Other living expenses
Remember, life is not all work and no play. When calculating your budget, it’s a good idea to keep in mind leisure and entertainment expenses like the gym, cinema, or even day trips to new places around your city and beyond.
If you’re starting a new job, you might find yourself in need of some new clothes. And you may need to bear in mind subscriptions, like streaming services. All these costs can add up, so thinking ahead can help you plan.
And of course, in this day and age, a mobile phone is a necessity. Plans can vary, but if you’re coming with a phone already and only need a SIM card, O2 is offering a monthly plan of €19.99 for 50 GB. Contracts, depending on the phone, could start as low as €30, but the price will vary across different providers.
Tips for managing living costs in Germany
If you need a little guidance in budgeting, we’ve got you! You can check out our guide to budgeting in 2025 to help you create the best and most efficient budget possible.
A great tip to remember when budgeting is to be honest about your lifestyle and what you can afford. Because you can still do fun things even on a tight budget!
What are the absolute essentials that aren’t rent and utilities? If you know you love to eat out, give yourself a generous, but within reason, budget for monthly outings to check out new restaurants around town.
Moving to a new place often drives the desire to get out and explore. It’s good to consider this when coming up with your monthly expense sheet.
If you have school loans or other monthly expenses that you’re paying before your move, what will that look like in terms of currency exchange? Will you have to send money home to make payments?
Answering these questions will help you create a concise budget, allowing you to live a balanced life in your new home without the stress of financial worries.
You’re not alone
Moving can be stressful, but it’s also an exciting new adventure, especially if your new home is in Germany! Don’t forget that you’re not alone in this process, and there are plenty of resources to help you adjust.
I started in Germany with no kitchen and a whole lot of questions, but it all worked out.
We hope this guide has given you the confidence and peace of mind needed as you embark on this new journey. Good luck!
FAQs
What’s the cost of living like in Germany?
The cost of living in Germany varies widely depending on the region. It is generally moderate compared to other Western European countries and high compared to some other European countries. However, it offers good value for money for what you can get.
How much is rent in Germany in 2025?
Rent varies significantly depending on the region or city. In 2025, a one-bedroom apartment could cost €1231.90 in Berlin and €1466.55 in Munich. Rent in smaller towns could be much lower.
What’s public transport like in Germany?
Germany has an excellent public transport network. Larger cities like Berlin have well-developed bus, metro, and tram services. An excellent option is the Deutschland ticket, which offers unlimited travel on all local public transport services and regional trains across the country for €58 per month.