Cost of Living in Berlin

As one would expect in any European capital city, the cost of living in Berlin is fairly high. Berlin was ranked 37th out of 227 cities surveyed in the 2023 Mercer Cost of Living Survey. According to the survey, the cost of living in Berlin is about the same as in Munich (38th) but more expensive than in some European cities such as Madrid and Stockholm.

Regardless, expats will find that certain things, such as the cost of rental accommodation, are just a fraction of what they would pay in other European cities, such as London or Copenhagen.

Health insurance is an expense that no one moving to Germany can avoid, so expats are advised to negotiate for a provision for this within their employment contracts wherever possible.

While expat parents moving to Berlin will have a wide variety of choices when it comes to schooling, the cost of international school fees is steep.

Cost of accommodation in Berlin

As is the case throughout much of Germany, Berlin residents tend to rent rather than buy property. Expats who move to the city also generally rent accommodation in Berlin, owing to the short-term nature of their assignments.

Rent in Berlin is generally lower than that in other German cities, and even more so if expats opt for accommodation further away from the city centre.

Cost of groceries in Berlin

Despite being Germany's capital city, Berlin is surprisingly affordable. Groceries in Berlin are less pricey than in other parts of the country as well as in other parts of Europe such as the Netherlands, France and Belgium. Expats can further reduce their grocery basket costs by shopping at discount stores such as Aldi, Penny and Lidl.

Health-conscious expats willing to shell out a bit more for organic or bio food can visit more premium supermarkets such as EDEKA and Rewe. These stores usually sell more speciality items and a wider range of products.

Cost of entertainment and eating out in Berlin

Naturally, the cost of entertainment and eating out will vary in accordance with an individual's tastes and preferences. But those moving to Germany will find there are opportunities to either save or splurge in accordance with most budgets.

When it comes to food, Berlin has everything from upscale bistros to street food stalls, so expats are sure to find good quality food to satisfy any craving and fit any budget. While entrance to Berlin's top nightclubs comes with a small fee, the city has lots of bars and eateries with live music at no cost.

There are many free pursuits to enjoy too, such as savouring a summer's day in the park, visiting local markets or going for a cycle. So even those who want to save while living in Berlin can do so without missing out on social life.

Cost of transport in Berlin

Berlin has an excellent public transport network, and it is generally more affordable than transportation in Frankfurt and Munich. It is not necessary to have a car in Berlin, and most expats prefer to use buses, trams and the metro.

Expats who plan on utilising public transport to commute to and from work daily can save money by investing in a travel pass. This is valid on all modes of public transportation.

Cycling is popular with the local population in Berlin and is by far the most cost-effective way to get around the city. Berlin's infrastructure also caters well for cyclists, with plenty of dedicated lanes and storage facilities for bicycles scattered throughout the city.

Cost of healthcare in Berlin

Berlin is home to some excellent hospitals, and new arrivals can be assured that they will be well taken care of in the city. It is compulsory for everyone in Germany to have some form of health insurance though, so this is something that expats moving to Berlin must factor in.

Anyone who is employed by a company operating in Germany can take advantage of the state health insurance plan, which is well subsidised. Those earning above a certain income bracket will not qualify for public health insurance. In this case, private insurance becomes compulsory, and expats are advised to try and negotiate a healthcare allowance within their contract of employment.

Freelancers and those who are self-employed will also need to purchase private health insurance, which is significantly more expensive. Private insurance varies according to the age and health of a person, as well as the type of cover required.

Cost of education in Berlin

While Berlin has a fair few international schools, expats will find that tuition fees are particularly high. Expats who are not lucky enough to be given an allowance for their children's school fees should investigate the prospect of bilingual schools in Berlin.

These are public schools where children are taught in both German and another language. Bilingual schools in Germany operate at little to no cost, which makes them far more affordable than international options.