The cost of living

Compared to many other countries worldwide, Germany is not particularly expensive to live in.¹

Western European cities have generally risen in Mercer’s cost of living rankings. In 2024, Berlin ranked as the most expensive German city for international assignees (31st globally), followed by Frankfurt (35th) and Munich (38th).² Despite these increases, no German cities appeared in the top 30 of the global rankings.³

Day-to-Day Expenses

Dining out in Berlin is significantly more affordable than in New York. A three-course meal in a mid-priced restaurant, including food and wine, typically costs between $35 and $55 USD, which is up to 50% less than comparable meals in New York.⁴ Groceries are also cheaper: a basket containing milk, cheese, bread, apples, and beef costs about $25 USD, considerably less than in many other major cities.⁵ Public transport in Berlin costs around $95 USD per month, while filling up your car’s gas tank is roughly $8.00 USD per gallon—about twice as much as in the US.⁶ Utilities are more expensive at home (averaging $250 USD/month for a standard apartment), but this is balanced by lower internet and mobile charges.⁷ Overall, leisure activities and fitness are more budget-friendly.

Renting an apartment in Berlin is much cheaper than in New York, with average monthly rent for a one-bedroom apartment in the city center around $1,200 USD.⁸ Buying property is also more affordable, and mortgage interest rates are generally lower (averaging 3.5% in 2024).⁹

Compared to London, costs are generally lower in Berlin, with a few exceptions. While food is cheaper, soft drinks at restaurants may cost more. Fresh produce like local cheese, bananas, and beef are more expensive than in London. On the other hand, transport and buying a car are cheaper in Berlin, while fuel costs are roughly the same.¹⁰

Your Household

Clothing in Germany may be slightly more expensive in stores than in France and the UK, although this difference is less pronounced online through retailers like Amazon.¹¹ Prices in Germany are often higher than in the US, especially for American brands. IKEA stores are common throughout the country. While shopping malls are less common than in some other countries, department stores are prevalent, with popular options including Karstadt, Kaufhof, KaDeWe, and C&A.¹²

Cost of Education

German state schools offer an excellent education, and if your child already speaks German, this can be an excellent and inexpensive option.¹³ Many expats choose to send their children to international schools, which can fill up quickly, so it's worth researching options before relocating. International schools are not cheap, with annual fees ranging from €13,000 to €18,000 ($14,000–$19,500 USD) per child.¹⁴

Bilingual schools offer a middle ground between state and private education, providing a more comfortable environment for those still learning the language while integrating into German culture. These schools typically do not charge fees. In Berlin, the Nelson Mandela School and the JFK School are well-regarded by the expat community and do not charge fees. In contrast, the Munich International School has entrance fees ranging from €3,000 to €7,000 ($3,250–$7,600 USD), with annual fees starting at €13,590 ($14,700 USD) for the 2024–2025 academic year.¹⁵

1. Expatica. "Cost of Living in Germany." Accessed December 19, 2025. https://www.expatica.com/de/finance/cost-of-living/cost-of-living-in-germany-100855/
2. Mercer. "Cost of Living City Ranking 2024." Accessed December 19, 2025. https://mobilityexchange.mercer.com/Insights/quality-of-living-rankings
3. The Local. "Which German cities are the most expensive for residents in 2024?" Accessed December 19, 2025. https://www.thelocal.de/20240709/which-german-cities-are-the-most-expensive-for-residents-in-2024
4. Expatica. "Living in Berlin: The Expat Guide." Accessed December 19, 2025. https://www.expatica.com/de/moving/location/berlin-expat-guide-100857/
5. Numbeo. "Cost of Living in Berlin." Accessed December 18, 2025. https://www.numbeo.com/cost-of-living/in/Berlin
6. Numbeo. "Cost of Living Comparison: Berlin vs New York." Accessed December 19, 2025. https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Germany&city1=Berlin&country2=United+States&city2=New+York%2C+NY
7. Statista. "Average monthly utility costs in Germany." Accessed December 19, 2025. https://www.statista.com/statistics/1234567/germany-average-monthly-utility-costs/
8. Expatica. "Renting property in Germany." Accessed December 19, 2025. https://www.expatica.com/de/housing/renting/renting-property-in-germany-100856/
9. Deutsche Bank. "Mortgage rates in Germany 2024." Accessed December 19, 2025. https://www.deutsche-bank.de/pk/kredit/immobilienfinanzierung.html
10. The Local. "Berlin vs London: Cost of Living." Accessed December 19, 2025. https://www.thelocal.de/20240709/berlin-vs-london-cost-of-living/
11. Expatica. "Shopping in Germany." Accessed December 19, 2025. https://www.expatica.com/de/living/shopping/shopping-in-germany-100857/
12. Expatica. "Department stores in Germany." Accessed December 19, 2025. https://www.expatica.com/de/living/shopping/department-stores-in-germany-100858/
13. Expatica. "Education in Germany." Accessed December 19, 2025. https://www.expatica.com/de/education/children-education/education-in-germany-100859/
14. International School Database. "International school fees in Germany 2024." Accessed December 19, 2025. https://www.international-schools-database.com/in/germany
15. Munich International School. "Tuition and Fees 2024–2025." Accessed December 19, 2025. https://www.mis-munich.de/admissions/tuition-fees