Cost of Living in Germany

The cost of living in Germany for expats is the primary concern for those who are considering job opportunities in the country or just relocating there. Here are some of the facts and figures that may help you assess the situation.

Taxes

The tax rate varies depending on earnings and status but it can go as high as 44.3% for a single individual. The highest rate for a company is 25%. In addition there are also deductions due to the Value Added Tax (VAT). If your business enterprise involves trade, there is also a trade tax. For this reason it is often beneficial to keep your salary fixed (i.e., not subject to the fluctuation of the exchange rates) as it can help reduce costs.

Housing

If you have to move from your home country because of company policy, the cost of living in Germany for expats will be shouldered in part by the moving allowance you will get. Note however that this is often only applicable if the relocation is for two years or more. Make sure that the money is sufficient so that you can get a place similar to where you used to live.

Renting Apartments

The cost of renting an apartment will depend on the location and the size of the place. A two bedroom apartment costs at least 900 Euros a month. A three bedroom house may come in at 1,600 to 2,000 Euros. There are also several condominium units you can buy or rent.

Transportation Costs

If you are interested in going to other countries in Europe you will be pleased to know that for 100 Euros you can fly anywhere in the continent, helping lower the cost of living in Germany for expats significantly. The fuel cost fluctuates according to the season. Do not be surprised if it goes up by as much 20% during winter.

Shopping

Shopping is pretty much the same as in the United States, with the cost depending on the stores you buy from. One thing that expats might need to get used to is that clothes are specified in centimeters (not sizes). The stores here are also not as large as those in the United States, but a lot of what you will need are here.

Water and Food

In terms of the above mentioned basic necessities, the cost of living in Germany for expats may seem a bit high. The rate in cities and villages are not the same but on the average it can be 100 Euros a month for water (this is for a family of three). Bread costs about 2 to 3 Euros per loaf; milk comes in at 70 cents per liter. The prices of fruits are also quite high, both in supermarkets and small stores.

The question of whether it is too expensive to live in Germany will be dependent on your salary to a large extent. As stated, company cars and relocation pay helps reduce the cost of transferring. If you would like to settle there you will need to assess the facts and the figures. Doing so will allow you to determine if the cost of living in Germany for expats is right for you.