This guide helps you budget your move to Germany and lower your cost of living.
Taxes, insurance and pension
Cost: Around 35% of your income. Use my tax calculator.
Your employer deducts taxes and social contributions from your paycheck every month. This includes income tax, health insurance, public pension insurance and unemployment insurance.
German tax calculator
Calculate your German net income after income tax and social contributions.
Housing
Rent
Cost: €600 to €900 per month (room), €900 to €1,600 per month (apartment).
In Germany, there is the cold rent (Kaltmiete), and the warm rent (Warmmiete). The warm rent includes utilities (Nebenkosten).
Rent is usually your biggest expense. An unfurnished apartment costs €16 to €25 per m². Temporary furnished apartments are more expensive.
If you just moved to Germany, you might need to pay more. Recent immigrants usually pay higher rents. They get overpriced furnished apartments because they have no other options. Cheap apartments usually go to long-term residents.
After a few months in Germany, lower your rent or find a cheaper apartment.
Electricity
Cost: €45 to €70 per month
In Germany, you pay two power bills:
- The heating and hot water that are usually included in your warm rent (Warmmiete)
- The electricity and gas for your lights and appliances. This costs €45 to €70 per month
Internet
Cost: around €40 per month
For €40 per month, you can get a 100 Mbit/s internet connection.
TV tax
Cost: €18.36 per household per month
Every household must pay the TV tax. If you live with other people, you can share the cost.
Food
Cost: around €200 per month
If you only eat at home, you should pay around €200 per month for groceries. If you eat out, you will spend a lot more.
Cost of food and restaurants in Berlin – numbeo
Transportation
Public transit
Cost: €63 per month or €4 per ride
Public transit ticket prices in Berlin
Vehicles
Cost: at least €100 per month
In Berlin, you rarely need a car. If you have a car, you must pay for parking, car insurance, vehicle tax, fuel, tires and maintenance.
You need a driving licence to drive in Germany. It costs around €2,500 to €4,000. You can sometimes convert your foreign driving licence. It’s cheaper and faster. There is no yearly cost for a driving licence.
Mobile phone
Cost: €7 to €40 per month
A basic pay-as-you-go data plan costs around €10 per month. Plans that include a smartphone are much more expensive. It’s cheaper to buy the phone without a plan.
Finances
Banking
Cost: €0 to €10 per month
Some banks charge a monthly fee. It’s usually around €10 per month. Some banks also charge €5 to €10 when you use an ATM from another network.
Liability insurance
Cost: around €5 per month
Liability insurance is optional, but really important. It costs around €5 per month. Most Germans have it.
How to choose liability insurance
Dogs
Cost: at least €50 per month
If you have a dog, you must pay for dog food, liability insurance, health insurance, dog food and dog tax.
The dog tax is €120 to €180 per year. Dog liability insurance is required, and it costs around €5 per month. Pet health insurance is optional, and it costs around €20 per month. You can see the price of dog food here.
One time expenses
Apartment deposit (Kaution)
Who pays it: People who rent an apartment
Cost: 3 times your cold rent (Kaltmiete)
When you move into an apartment, you must pay a deposit (Kaution). You can’t touch that money until you move out.
If you live in a WG, the deposit is smaller. Sometimes, there is no deposit.
Furniture, appliances, etc
Cost: €200 to €10,000
When you move into your first apartment, you must get new furniture, new appliances, kitchen equipment, etc. In Germany, you might even need to buy light fixtures, and a kitchen counter.
To save money, buy used furniture. You can find free/cheap furniture on Kleinanzeigen and various Facebook groups.
Example budget
These are my real monthly expenses in 2026. It only includes the bills I must pay. It does not include buying clothes, replacing broken things, and going out.
My rent is also very low, because I have an old rent contract, and I live far from the centre.
| Description | Monthly | Yearly |
|---|---|---|
| Rent | €600 | €7,200 |
| Groceries | €250 | €3,000 |
| Electricity | €60 | €720 |
| Public transit pass | €63 | €756 |
| Internet | €40 | €480 |
| TV tax (Rundfunkbeitrag) | €18 | €210 |
| Mobile phone | €10 | €120 |
| Liability insurance | €5 | €60 |
| Total This is how much I need to pay the bills |
€1,046 | €12,552 |