🇩🇪 Cost of Living in Germany: What You Need to Know Before Moving in 2025

Germany is a popular destination for expats due to its strong economy, excellent infrastructure, and high quality of life. If you’re planning to move there in 2025, understanding the cost of living is crucial for effective financial planning. This post covers key expenses you’ll face, from housing and groceries to healthcare and transportation, so you can prepare and budget accordingly.

1. Housing Costs in Germany

One of the most significant expenses you’ll encounter in Germany is rent. Housing prices vary widely depending on the city and region you choose to live in. For instance, living in metropolitan areas like Berlin, Munich, or Frankfurt tends to be more expensive than in smaller cities or rural regions.

• Average Rent in Germany: In 2025, expect to pay around €1,200 per month for a one-bedroom apartment in the city center. Outside the city center, prices drop to around €850 per month. If you opt for shared accommodation or rent outside the major urban areas, you can save considerably.
• Utilities: On top of rent, utilities such as electricity, heating, and water will add about €200 to your monthly expenses. Internet plans typically cost around €30 per month.

Make sure to check Germany’s official housing platform for current listings and prices.

2. Grocery and Food Expenses

Food costs in Germany are relatively affordable compared to other Western European countries. Groceries will likely take up a smaller portion of your budget, especially if you shop at discount supermarkets such as Aldi, Lidl, or Netto.

• Monthly Grocery Costs: On average, a single person can expect to spend around €250–€300 on groceries each month.
• Dining Out: Dining at an inexpensive restaurant will set you back about €12–€15 per meal. If you prefer mid-range restaurants, expect to spend around €50 for a three-course meal for two people.

For more tips on affordable grocery shopping in Germany, check out German Supermarket Guide.

3. Transportation Costs

Germany boasts an efficient public transport system, with options including buses, trams, and trains. If you live in a major city, you might not even need a car as public transportation is both reliable and widespread.

• Public Transport: A monthly pass for public transport within a city like Berlin or Munich costs around €80–€100. For intercity travel, Germany’s extensive train network, the Deutsche Bahn, can take you across the country at varying prices. Booking in advance can save you money.
• Owning a Car: If you decide to own a car, factor in additional costs like insurance (around €100 per month), fuel (approximately €1.70 per liter), and maintenance.

You can check the Deutsche Bahn website for train ticket prices and offers.

4. Healthcare Costs

Germany operates a dual healthcare system consisting of public and private insurance. By law, all residents must have health insurance, whether through the public system (gesetzliche Krankenversicherung) or private providers (private Krankenversicherung).

• Public Health Insurance: The cost of public health insurance is income-based, with contributions of around 14.6% of your gross income, shared between you and your employer. Expect to pay approximately €300–€400 per month for public insurance if you’re an employee.
• Private Health Insurance: For higher earners or freelancers, private insurance can be a more attractive option. Premiums start at around €200 per month but can rise depending on your age, health status, and the coverage level.

You can learn more about health insurance in Germany by looking up Germany’s Healthcare System Guide.

Read Also: Germany Au Pair Visa with €260/Month Pocket Money – Eligibility and Process Guide

5. Education and Childcare Costs

Germany is known for offering free education, particularly in public schools and universities. If you’re moving with children, it’s worth noting that education costs are minimal compared to other countries.

• Public Education: Primary and secondary education at public schools is free for both locals and expats.
• Higher Education: Many public universities offer tuition-free programs or charge nominal fees for international students. However, private universities can cost anywhere between €10,000 and €20,000 annually.
• Childcare Costs: Daycare centers or kindergarten (Kita) fees vary depending on the region and your income. On average, you can expect to pay €100–€400 per month for daycare.

Visit the German Federal Ministry of Education and Research website for more information on the education system.

6. Other Living Expenses

In addition to the essentials, you should budget for other costs such as entertainment, clothing, and fitness.

• Entertainment and Leisure: A movie ticket costs around €12, while a gym membership will set you back about €30–€50 per month. If you enjoy dining out or going for drinks, a pint of beer costs about €4–€5.
• Mobile Phone Plans: Expect to pay around €20–€30 per month for a basic mobile plan with calls, texts, and data.

The cost of living in Germany in 2025 will depend heavily on your lifestyle, location, and family size. Major expenses like housing and healthcare are higher in large cities, but with careful planning, you can enjoy a high quality of life on a moderate budget. Make sure to research in advance and compare prices to tailor your budget according to your needs.

Before moving, don’t forget to check visa requirements for Germany here and make sure your finances are in order for a smooth transition.

Germany remains an attractive option for expats due to its robust economy, excellent healthcare, and quality of life, and knowing the costs ahead of time will help ensure a smooth relocation process.

More Guides:

• Unemployment no Longer a Barrier: How to Secure a Germany Job Seeker Visa Before Applying
• A Breakdown of Germany Study Visa Process 2024
• Have You Heard About the Germany Opportunity Card for Job Seekers / Applicants 2024?