Cost of living in Berlin, and Germany

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Berlin is one of the oldest, most beautiful and welcoming cities in Europe. Being the capital of Germany, it should surprise you with its modernity, liveliness and opportunity. 

However, many people have this idea that living in Germany as especially Berlin is quite the costly experience. We reckon that is far from the truth and the prices simply reflect those found in many European cities.

Whether you’re a student that wants to send parcel to Germany for your friends and pay them a visit, or perhaps someone looking for a job and a chance to settle down in Germany, it’s important to know the truth about the cost of living in the country and it’s capital city.

Today, we will talk about just that, by focusing on different expenditure aspects.

Taxation in Germany

One of the major aspects of living in Germany that does contribute to the price overall is the taxation system. While it may seem a bit hefty, it certainly is for the benefits of the average person.

When you’re working in Germany, a part of your monthly salary is deducted in terms of taxation, while the rest of course you can spend on things like rent, food, transportation and so on.

Main taxes in Germany include:

  • Income tax – this is deducted from your salary as standard if you’re a regular employee. For those that are self-employed, they must either pay the taxes themselves, or allow the government institutions to take the money from the salary every month.
  • Health insurance – this required for all people and comes at around 16 percent of what you make every month. The good thing is that half of the tax is paid by the company that employs you.
  • Pension payments – every worker in Germany is also mandated to pay what’s called pension insurance every month. This is done so that when you retire and you stay in the country, you receive a certain amount of pension from the country.
  • Unemployment insurance – this is paid by everyone who works at a job. If you suddenly lose it, you get unemployment benefits from the country to help you find another job.

Cost of rent

One of the most essential expenditures while living in Germany will of course come in the form of accommodation. Contrary to popular belief, the living costs in Berlin and Germany itself are not that pricier than any other European city.

In fact, you can easily find a room to rent for about 400-600 euros per month. This is the average price in most European cities, so you should be fine. If you’re looking for a full apartment, then you might pay as much as 1500 euros per month.

Renting along with someone else, can certainly shave off the price as well.

Food prices

Food is another sphere where you will be doing most of your spending. The average monthly price for groceries while limiting your time in bars and restaurants is around 200 euros per month.

So, to save as much money as possible, make sure that you usually make your food at home and choose cheaper products when you can.

Vehicles and public transportation

Usually the monthly payment is up to 80 euros per month for a monthly subscription on public transportation. For those who don’t use it regularly, it’s worth noting that a bus ride usually costs around 3 euros for a single trip.

One way you can save a hefty sum of money is to buy a yearly ticket, which ensures that you get the opportunity to ride public transport without any major hassles all year.

For students, it’s also worth noting that schools offered cheaper tickets as they know you don’t have the opportunity to make as much money.

In terms of vehicles, we don’t recommend owning one since most places can easily be reached with public transport or something like a scooter or bicycle.

Owning a vehicle in Berlin means not only your typical maintenance costs, but additional taxes, insurance payments and so on. If you must have an automobile, then buy a smaller car which requires less maintenance and tax.

All in all

In this article we’ve discussed the main costs of living in Germany and Berlin in particular. It can be said that it’s just like any other city, with a few exceptions like transportation which require more money.

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