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Moving to Germany: Cost of Living, Salaries, Jobs & Taxes (2026)

Quick facts, monthly costs, job market overview and practical residency steps for relocating to Germany.

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Moving to Germany: At a Glance

Germany is in Central Europe, with its main hub in Berlin. It’s known for a specific mix of lifestyle, work culture and affordability — and it can be a strong option for expats depending on your income level and priorities.

Best forcareer + large job market
Main expat hubBerlin
LanguageEnglish in cities, local language helps
BordersFrance, Poland, Czech Republic, Austria, Netherlands, Belgium, Switzerland, Denmark
Quick decision tip: If you prioritize career opportunities and large job market, Germany can be a great fit. If your top priority is maximum salary and work-life balance, compare it against Nordic/Western Europe in the country comparison tool.

Key Numbers (2026)

Average Salary€55,000/year
Rent€13/m²
English Proficiency65%
Unemployment3.1%
Data & methodology: Key numbers are indicative estimates compiled from public datasets (e.g. Eurostat/OECD), price indexes, and Europe Compass aggregation. Some figures shown as “%” are proxy scores (0–100) for readability. Updated 2026-01-15. See full statistics & methodology.

Job Market and Career Opportunities

Why Germany is the Powerhouse for International Professionals

Germany boasts Europe's strongest economy with exceptional job security. The unemployment rate of just 3.1% combined with solid English proficiency (65%) creates excellent opportunities. With an average salary of €55,000, Germany offers the highest earning potential in Europe for skilled professionals.

Top Industries in Germany

Automotive & Engineering

10/10

World leaders BMW, Mercedes, Volkswagen and Siemens offer countless opportunities.

Technology

9/10

Berlin and Munich are thriving tech hubs with strong startup ecosystems.

Finance

8/10

Frankfurt is Europe's financial capital with major banks and financial institutions.

Job Applications and Language Requirements

65% of professional jobs are accessible with English, especially in tech, finance and multinational companies. German is essential for public sector, healthcare and local service roles.

Pro Tip for Job Hunting

XING is more popular than LinkedIn in Germany. Strong emphasis on formal qualifications and certificates. 75% of companies offer flexible working arrangements.

Housing in Germany

Housing Market Overview

Germany offers more balanced housing costs compared to other Western European countries. Average rent is €13/m², with better availability (~45%). Purchase prices average €3,800/m², making homeownership more accessible than neighboring countries.

Major Cities by Housing Costs

Munich

+40% more expensive1.5M residentsTech hub, high quality of life

Berlin

+15% more expensive3.7M residentsCultural capital, startup scene

Hamburg

+20% more expensive1.9M residentsMaritime city, media hub

Frankfurt

+35% more expensive750k residentsFinancial center

Apartment Hunting - Practical Tips

  • Prepare Schufa: Credit report required for most applications
  • Income proof: Need 3x rent in monthly income
  • Use ImmobilienScout24: Germany's main housing platform
  • WG-Gesucht: Best for shared apartments and rooms

Taxation and Net Salaries

German Tax System

Progressive tax with church tax (if applicable). Average net salary ~€38,500 on €55,000 gross. High social security contributions but excellent benefits.

Income Tax Brackets 2025

Income BracketTax Rate
under €11,0000%
€11,000-62,00014-42%
€62,000-277,00042%
over €277,00045%

Social Security & Benefits

High social contributions (~20% of gross) but comprehensive coverage: health insurance, unemployment benefits, pension, and parental leave.

Key Benefits:

  • Universal healthcare coverage
  • 14 months parental leave
  • Strong unemployment protection

Cost of Living

Monthly Essential Costs

Groceries and Daily Items

€320/month

Rewe, EDEKA are main chains. Aldi/Lidl are budget-friendly.

Transportation

€85/month

Public transport pass or car expenses.

Utilities

€180/month

Electricity €140, water €40.

Health Insurance

€380/month

Included in salary deductions (employer pays half).

Internet and Mobile

€55/month

Telekom, Vodafone and O2.

Bureaucracy and Practical Matters

First Steps After Moving

1

Registration (Anmeldung)

Register address at local Bürgeramt within 14 days. Bring passport and housing contract.

2

Tax Number

Apply at Finanzamt. Needed for employment. Duration: 2-4 weeks.

3

Bank Account

Deutsche Bank, Sparkasse or N26. Needs registration certificate.

Culture and Lifestyle

International Community and Integration

Germany is highly international with ~65% English proficiency in major cities. Strong expat communities in Berlin, Munich, and Frankfurt.

Lifestyle Characteristics

Work-Life Balance

Strong labor protections, 6 weeks vacation standard.

Environmental Focus

Leading in renewable energy and recycling culture.

Cultural Richness

Exceptional museums, music and architectural heritage.

Summary: Pros and Cons

Advantages

  • Highest salaries in Europe (€55k)
  • Excellent job security
  • Strong social benefits
  • Central European location
  • Rich cultural heritage

Challenges

  • Complex bureaucracy
  • Language barrier in many sectors
  • High tax burden
  • Formal business culture

Final Recommendation

Best for: Engineering, automotive, and tech professionals seeking highest salaries, job security and comprehensive social benefits; willingness to navigate bureaucracy.

Overall Rating for Expats9.0/10
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