This is how much it costs to live in Berlin, and elsewhere in Germany. This guide helps you make a budget before you move to Germany, and save money every month.
Taxes, insurance and pension
Cost: use the tax calculator
In Germany, a part of your gross income (Brutto) is for taxes and social contribution. Your employer automatically takes them from your salary. The money you keep is your net income (Netto).
If you are self-employed, don't pay unemployment insurance, and pension insurance is optional. You might also pay a trade tax (Gewerbesteuer).
If you make money with stocks and other investments, it's taxed separately. You pay a capital gains tax (Kapitalertragsteuer) of 25%1. Cryptocurrencies are taxed differently.
How to pay less income tax
- Deduct expenses in your tax declaration. It reduces your taxable income, so you pay less income tax. Tax advisors and tax software can help you find expenses to deduct.
- Contribute to your retirement pension. Pension contributions are taxed later, when you get a pension. It's a way to defer income tax.
How to pay less for health insurance
- Learn how to choose German health insurance. Don't just pick the default option. My health insurance calculator show you what options you have.
- Choose a public health insurance with a lower Zusatzbeitrag.
- Switch to private health insurance. It's sometimes cheaper. This is not a simple decision. Talk to a health insurance broker first.
- Switch to expat health insurance. It can be much cheaper. In most cases, this is a really bad idea, but in some cases, it can make sense. Talk to a health insurance broker first.
- If you are a freelance artist, publicist or art teacher, join the Künstlersozialkasse (KSK). They pay half of your health insurance, and half of your public pension insurance. It's a really good deal.
How to pay less pension insurance
- If you are a freelance artist, publicist or art teacher, join the Künstlersozialkasse (KSK). They pay half of your health insurance, and half of your public pension insurance. It's a really good deal.
- If you leave Germany, you can sometimes get your pension payments back.
How to pay less church tax
- Leave the church, and stop paying the church tax.
Rent
Cost: 400€ to 750€ per month (room), 600€ to 1500€ per month (apartment)
Rent is often your biggest expense. Many immigrants get very expensive furnished apartments, because they can't find anything else. After a few months in Germany, you should look for something cheaper.
In Germany, there is the cold rent (Kaltmiete), and the warm rent (Warmmiete). The warm rent includes heating and hot water (the Nebenkosten).
How to pay less for rent
- Live in a WG — share an apartment with other people. You split the rent, the internet, the TV tax, and other bills.
- If you are a student, live in a dormitory (Studentenwohnheim). StudierendenWerk housing is much cheaper than regular apartments.
- Move to a cheaper area. In Berlin, apartments are cheaper outside the Ring, but they are still close to the centre.
- If your rent is over the legal maximum, get it lowered. This is your right. Your landlord can't punish you.
How to find an apartment in Berlin ➞
Food
Cost: around 250€ per month
If you only eat at home, you should pay around 250€ per month for groceries. If you eat out, you will spend a lot more.
Cost of food and restaurants in Berlin — numbeo
Public transit
Cost (Berlin): 44€ to 86€ per month (monthly pass), or 3€ per ride
How to pay less for public transit
- Get a yearly subscription. It's much cheaper than a monthly pass.
- In Berlin, get a 10-Uhr-Karte if you don't use public transportation between 3AM and 10AM on weekdays.
- If you are a university or Hochschule student, your get a very cheap Semesterticket from your school1. It's usually included in your school fees.
Electricity
Cost: 60€ to 100€ per month
In Germany, the heating and hot water are usually included in your warm rent (Warmmiete). You still need an electricity contract for the lights and appliances.
How to pay less for electricity
- Use a price comparator to find a cheaper electricity company
- Change to a new electricity provider every year
Internet
Cost: around 35€ per month
For 35€ per month, you can get a 100 Mbit/s internet connection.
How to pay less for internet
- Use a price comparator to find a internet service provider
- When your internet contract is about to expire, call your internet company and ask for a better price. They will renew your contract, but give you a better plan. For example, I got a free upgrade from 100 Mbit/s to 300 Mbit/s.
Mobile phone
Cost: 5€ to 40€ per month
How to pay less for phone service
- Use a price comparator to find a cheaper phone plan.
- Get a prepaid phone plan. A prepaid phone plan with 3 to 5 GB data costs around 10€ per month.
- Buy your own phone. It's cheaper to buy the phone you want, than to get a 2 year mobile phone plan with a new phone.
TV tax
Cost: 18.36€ per household per month
In Germany, every household must pay the TV tax (Rundfunkbeitrag). If you live with other people, you can split the cost. In some cases, you don't have to pay it.
You will receive a TV tax invoice by mail every 3 months. You can pay manually with a bank transfer, or automatically with a debit authorisation.
What is the Rundfunkbeitrag? ➞
How to avoid the TV tax
- If you receive financial aid (ALG II or BAföG), you can fill this form to stop paying the TV tax.
- If you live with other people, you only need to pay the TV tax once. You can split the cost.
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.
How to avoid banking fees
Liability insurance
Cost: around 5€ per month
Liability insurance is optional, but it's a really good idea. If you cause an accident, and someone sues you, the liability insurance pays for the damages. It costs around 5€ per month. Most Germans have it.
How to choose liability insurance in Germany ➞
Vehicles
Cost: at least 100€ per month
Cars are expensive to own and maintain. If you have a car, you must pay for parking, car insurance, vehicle tax, fuel, tires and maintenance.
Cost of owning a car in Germany ➞
How to save money:
- Don't buy a car. In most cities, you don't need a car. You should buy a bicycle and use public transit.
- Buy a small economy car. They are cheaper to buy, and cheaper to maintain. They use less fuel, and the vehicle tax is cheaper.
- Pay less for car insurance. There are many ways to do this.
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.
Related guides:
One time expenses
Apartment deposit (Kaution)
Who pays it: People who rent an apartment
Cost: around 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 eBay Kleinanzeigen and various Facebook groups.
Driving licence
Cost: 1,500€ to 2,000€. Less if you convert a foreign licence.
If you want to drive in Germany, you need a driving licence. You can sometimes convert your foreign driving licence.
How to get a (motorcycle) driving licence ➞
Example budget
This is an example budget for a single person who lives in Berlin. It uses realistic values.
Income
3,994€ was the average German salary in 20191. I used health insurance from Techniker Krankenkasse. I used the tax class for a single person without children (Steuerklasse I).
| Description | Monthly | Yearly |
|---|---|---|
| Gross income | 3,994€ | 47,928€ |
| Church tax | 59€ | 708€ |
| Income tax | 656€ | 7,873€ |
| Pension insurance | 371€ | 4,457€ |
| Unemployment insurance | 48€ | 575€ |
| Health insurance | 316€ | 3,786€ |
| Nursing care insurance | 71€ | 851€ |
| Net income This is the money you have left to spend | 2,473€ | 29,677€ |
Expenses
These are my real monthly expenses. This table does not include buying clothes, replacing broken things, or having fun. It only lists the bills I must pay.
My budget includes a motorcycle, and a garage (120€/month). You don't need those. My rent is also very low, because I live far from the centre.
| Description | Monthly | Yearly |
|---|---|---|
| Rent | 678€ | 8,136€ |
| Groceries | 175€ | 2,100€ |
| Public transit pass | 63€ | 756€ |
| Electricity | 38€ | 456€ |
| Internet | 36€ | 432€ |
| Vehicle insurance | 25€ | 304€ |
| TV tax (Rundfunkbeitrag) | 18€ | 210€ |
| Mobile phone | 10€ | 120€ |
| Liability insurance | 6€ | 74€ |
| Vehicle tax | 4€ | 47€ |
| Total This is how much I need to pay the bills | 1,053€ | 12,630€ |