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The Cost of Living in Germany for a Foreigner

Anybody moving to a foreign country ought to be cautious about the living expense they are about to incur. 

If you are moving to Germany and you want to know if you can afford the way of life over there, this is the right article for you.

I shall give you a list of the major things to keep in mind and an estimate of how much they are going to cost.

However, for a detailed explanation of financials in Germany, all the information is with your financial advisor. 

If you have non, then you may consider finding one through reading german financial services online from De.collected.reviews

You will be given detailed guidelines and expert advice on handling your finances in Germany. Here is a rough outline of the costs of living in Germany.

The cost of living in Germany.

  • Rent 

The most expensive part of living in Germany is paying your rent.

For permanent residency, you may choose to buy a house on a mortgage from any mortgage dealer in Germany or if you are on a temporary visit then renting a flat out is the best option.

The prices of rental homes fluctuate depending on the state of the city and the location within the said City.

The proximity to social amenities like school is also a factor that affects the pricing of houses.

Munich is currently the most expensive city in Germany to live in with the cost of rent being at about €1100. 

On average, the rent should be about €800 to €1000 per month for a 1 bedroom apartment in Germany. 

  • Health insurance 

In a bid to establish one of the world’s best healthcare systems Germany has placed mandatory health insurance for residents and non-residents living in Germany.

You can purchase your health insurance plan from the public health insurance scheme or a private insurance company or if you’re an international visitor you may come with a valid International health insurance policy.

On average, the cost of health insurance may cost about 80 euros to 1000 Euros.

  • Food and groceries 

With the two major expenses out of the way it comes down to the daily expenses.

Eating in is way cheaper and healthier as compared to eating out from restaurants.

The average cost of food and groceries in Germany will depend with your consumption rate and the number of people you’re shopping for.

Prepared to spend about €40 a week, but the final price will depend on how low or high you want to go. 

  • Basic Utilities. 

There are many types of utility bills. They are normally miscellaneous expenses and they can add up pretty fast. 

A summary of the utility expenses to add to your budget are;

  • Electricity expense – it costs about 40.43 cents per kWh.
  • Gas money
  • Water – costs about €1.60 per 1m³ (1000 liters).
  • Garbage collection
  • Cleaning services (when living in community shared spaces)
  • Property upkeep 
  • Laundry Services
  • Transportation and regular expenses.

Transportation between your place of residency and work or School will depend of the proximity.

The most common means of transportation in Germany are buses and subways.

You can also choose to use cabs or hire a rental car. In some cases hiring a rental car by then prove way cheaper especially where the distance is longer and you have to use connecting buses or rides. 

The cost of hiring a cab on a 2.5-mile ride will be approximately €8 to €9 depending on the city of your residence.

The monthly cost of a bus ticket ranges from €60 to €90.

It is on you to weigh the best option for you.

  • Emergency

Finally, when drawing your budget you must take to account the possibility of an emergency. 

It will depend on how much you are able to save after everything has been attended to.


Whether the German way of life is expensive for a foreigner is subjective. If you are moving from a country where you didn’t have to spend much money to live comfortably, then living in Germany will be expensive for you.

If you are moving from a country where it has a high cost of living then living in Germany should not be as extreme.

Again, the location you choose to live in Germany will also affect your daily expenses. living in the city is more expensive than living in the outskirts of the city. 

Lastly, to live more comfortably in expensive cities you must be cautious about your spending habits. It is a simple as that.