Planning a move to Germany? How to think about salary and living costs

Since I get a lot of questions on this topic, I want to share some of my own experiences with salary, taxes, and everyday expenses after moving here.

Moving here has been one of the best decisions I've made, both for my career and for my family. This post is about planning well, not about regrets.

My situation may be very different from yours. Your salary, family situation, location, lifestyle, and other expenses can all make a big difference.

So, this isn't a complete picture of what life in Germany costs, and it isn't financial advice. It's simply my personal experience for people who are considering moving to Germany and want to get a more realistic idea of what the numbers can look like.

1. Don't Look Only at Your Gross Salary

When you receive a German job offer, the first number you usually notice is the gross salary (Bruttogehalt).

For example, a salary of €X0,000 per year can look very attractive on paper.

But this isn't the amount that will arrive in your bank account.

In Germany, income tax and social-security contributions are deducted from your salary. These include contributions for health insurance, long-term care insurance, pension insurance, and unemployment insurance.

The amount you actually receive — your net salary (Nettogehalt) — depends on several factors, including your salary, tax class, health insurance, church tax, and personal circumstances.

That's why I would strongly recommend calculating your estimated net salary before accepting a job offer.

Useful links:

• Brutto-Netto-Rechner: estimate your net salary from a gross offer
• Salary, taxes & social security (Make it in Germany, the German government's portal for skilled workers): how deductions work

2. Your Net Salary Is Only the Beginning

Once your salary reaches your bank account, your monthly expenses start.

Housing and utilities

Rent can be one of the biggest expenses in Germany. But there is a huge difference between living in a major city, a smaller town, or a rural area.

And rent isn't always the complete housing cost.

You may also have expenses for heating, electricity, internet, and other household costs. Depending on your rental agreement, some operating costs are paid through monthly Nebenkostenvorauszahlungen and later reconciled with the actual costs.

So don't calculate your budget using rent alone.

Useful link: Cost of living (Numbeo)

Groceries

Food is another regular expense.

The amount you spend depends heavily on your household size, shopping habits, and lifestyle. A single person will obviously have a different budget from a family with children.

For me, the important lesson is simply this: don't underestimate how quickly everyday expenses add up.

Transportation and living outside major cities

Before moving to Germany, you might think:

“Germany has excellent public transportation. Why would I need a car?”

That can certainly be true in many cities.

But the situation can be very different if you live in a smaller town or village.

Buses may run less frequently, and important places such as supermarkets, doctors, childcare facilities, or workplaces may be several kilometres away.

When you have a child, this can become even more noticeable. A visit to the Kinderarzt or Hausarzt, for example, may require additional travel.

For some families, having a car therefore becomes practically necessary. Once you include financing or leasing, insurance, fuel, maintenance, and other costs, a car can become a significant part of the monthly budget.

Useful links:

• Deutschlandticket: one monthly ticket for local and regional public transport across Germany
• 116117 Arztsuche: find doctors, including paediatricians, near your address

3. Supporting Family Abroad Can Change Your Budget

This is something that may be particularly relevant to international workers.

If you regularly send money to parents or other family members in your home country, don't forget to include this in your monthly budget.

Your salary might look comfortable when you only consider your expenses in Germany. But if you also have regular financial responsibilities abroad, the amount left at the end of the month can be very different.

4. Don't Forget About Taxes and Annual Payments

Your monthly net salary isn't necessarily the final picture.

Your tax class (Steuerklasse) affects how much income tax is withheld from your monthly salary. For married couples, different tax-class combinations can result in different monthly withholding amounts.

However, the tax class does not simply determine how much income tax you ultimately owe for the year. Your final tax situation is determined based on your annual circumstances.

Depending on your situation, you may need to file a tax return and could receive either a refund or have an additional payment to make.

So, if you receive more money each month because of your tax-class situation, don't automatically assume that all of it is extra disposable income.

Useful links:

• Income tax classes explained (Make it in Germany)
• BMF Lohnsteuerrechner: the Federal Ministry of Finance's official income tax calculator
• ELSTER: the official portal for filing your tax return online

5. The Nebenkostenabrechnung Can Be a Surprise

If you rent a home in Germany, you may pay Nebenkosten together with your monthly rent.

These are often paid in advance based on an estimated amount. Later, your landlord can prepare an annual Nebenkostenabrechnung comparing your advance payments with the actual eligible costs.

If the actual costs were higher than what you paid in advance, you may have to pay the difference.

This is one reason I think it is important to keep an emergency buffer instead of spending every euro left after your regular monthly expenses.

An unexpected bill of several hundred euros can be uncomfortable if you have no savings available.

Useful link: Betriebskosten (Deutscher Mieterbund, in German): which operating costs a landlord may pass on to tenants

6. Your Location Can Make a Big Difference

One thing I learned is that saying “the cost of living in Germany is €X per month” doesn't really tell the whole story.

Where you live matters.

Your expenses can be very different depending on whether you live in:

• a large city
• a smaller town
• a rural area

Your family situation matters too.

A single person, a couple, and a family with children can have completely different monthly budgets.

That's why I wouldn't use someone else's salary and expenses as an exact reference for your own situation.

What I Would Check Before Moving to Germany

If you are considering a job in Germany, I would look at these numbers before making a decision:

1. Gross salary: What does the company actually offer?
2. Estimated net salary: How much will approximately reach your bank account every month?
3. Housing costs: What will rent, heating, electricity, and other housing expenses cost in that particular area?
4. Transportation: Can you realistically live without a car, or will you probably need one?
5. Family and personal commitments: Do you have childcare costs, family support, insurance, or regular payments abroad?
6. Emergency savings: Can you handle an unexpected tax payment, annual housing adjustment, repair, or other large expense?

Final Thoughts

Moving to Germany can offer interesting career opportunities and a different way of life. But I think it's important to look beyond the salary written in the job offer.

The number that matters for your monthly budget is not simply:

“How much is my gross salary?”

It's:

“How much will actually reach my bank account, and how much will I realistically have left after my expenses?”

These are lessons from my own experience, not rules that apply to everyone. I've had a few unexpected bills myself, and having a buffer made them much easier to handle.

If you're thinking about moving to Germany or starting a new job here, calculate your own numbers based on your salary, location, family situation, and lifestyle.

The more realistic your calculation is before you move, the fewer financial surprises you're likely to face afterwards. Once you know your real numbers, you can plan with confidence and enjoy the move.