Cost of Living in Munich

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The cost of living in Munich is basically tied with Berlin for the highest in Germany. In the 2023 Mercer Cost of Living Survey, Munich ranked 38th out of 227 cities across the world, ranking roughly as expensive as Brussels and Paris.

While housing and utility costs are quite high, expats can save money using public transport to get around the city. They'll also need to factor in the cost of compulsory health insurance. And while expats with children can send them to free public or bilingual schools, those that opt for international schooling should try to negotiate an allowance in their employment contract to cover the high costs.

Cost of accommodation in Munich

The biggest expense for expats in Munich is likely to be the cost of accommodation, though rental prices vary quite dramatically, depending on the time of year and area.

Naturally, expats with families can expect to pay more for a larger property. Also, given that Munich is a university city, the chances of finding reasonably priced accommodation are reduced because of the high demand for student housing.

Cost of groceries in Munich

Expats can expect groceries in Munich to cost around the same as they would in most European cities, but North American expats are likely to find food products cost slightly more than they are used to. The cost of entertainment and eating out depends on one's personal preferences, but it can be fairly pricey.

Cost of entertainment and eating out in Munich

As a university city and a major German arts and culture centre, Munich has an exciting lifestyle to suit people from all walks of life. Beer gardens are particularly popular in Munich, but the city is also home to many restaurants offering plenty of culinary delights at different price points.

There are also a fair few sports clubs and gyms available throughout Munich, but these come at a cost. Budget-conscious expats will still be able to see that the city is home to many free or affordable green spaces while the Alps are under two hours away.

Cost of transport in Munich

Munich has an extensive public transport system. Monthly passes are reasonable by European standards, depending on how many zones the cardholder needs to travel through.

Cycling is another option for getting around and is the transport of choice for many of the city's residents, especially students. It's an environmentally-friendly way to get around, and cyclists don't have to pay parking fees.

Most residents cycle or use public transport rather than drive. Expats who choose to drive in Munich will find that cars are fairly expensive even though petrol prices are reasonable. Car insurance can also be quite high, and parking is often difficult to find, so costs can add up.

Cost of healthcare in Munich

As is the case throughout Germany, private healthcare in Munich is quite pricey. Luckily, expats who are employed by German companies are entitled to public healthcare. Anyone earning less than a certain amount per month is automatically entered into the state healthcare scheme, and their healthcare contributions are split with their employer.

Expats earning more than the threshold will need to invest in private health insurance. Some employers may be willing to contribute to private health insurance, and it's something worth discussing in the contract negotiation process.

Cost of education in Munich

There are two options for education in Munich: public schools and international schools. Fees at German public schools are low or non-existent, but expat students will need to overcome the language barrier.

There are several international schools in Munich which can be a great alternative option, but their fees are expensive.