10 Jan 2025
Are you planning to fulfill your dream of moving to Europe but need clarification about which country to opt for? The UK and Germany are the top two choices of expats and there are plenty of reasons, including high quality of life, higher wages, and peaceful surroundings. However, there is quite a big difference between the cost of living in Germany and the UK.
Knowing how much of a budget is required to live comfortably in both countries is essential. The monthly average for both countries differs due to the difference in wages, rents, and groceries. While everyday life is more expensive in the UK, wages are higher in Germany. These financial dynamics often influence how expats send money back home to support their families. In more detail, this blog explores these differences in the cost of living in the UK and Germany.
Almost 10.7 million expats call the UK their second home. Here is a complete breakdown of their daily costs in this country.
For most families, housing is the most significant. In the UK, you can expect to pay almost or more than £2,175 for a three-bedroom apartment in any of the big cities. At the same time, the average cost of a three-bedroom home in the UK is £380,000 if you're purchasing one.
When we talk about the cost of living in Germany vs. the UK, utilities play a major role in deciding the winner. Your utilities, as a family of four, will be around £250 a month on average, only if you are frugal with them. This only covers gas, water, electricity, and the internet.
Moreover, a family of four in the UK spends an average of £600 monthly on food and groceries. This accounts for a good portion size for each family member three times a day. Regarding transport in the UK, a household of four pays £150 a month on average. This covers the price of gas, auto insurance, and public transportation. Remember that you must also pay road tax and parking fees if you own a vehicle. A family of four in the UK spends an average of £75 a month on clothes and shoes.
Purchasing clothing from leading street retailers is cheaper than malls and other brands. Your expenses will be higher if you buy clothing from specialty shops or designer labels so that you can add or subtract according to your clothing preferences. For a household of four, leisure and entertainment expenses in the UK average £60 per month, much higher than living expenses in Berlin. This covers the price of attending the movies, museums, and other fun events. Your costs will be higher if you like pricey pastimes like going to the theater or playing golf.
If you are a social family, you can expect your socializing costs as a family of four to be around £360 a month on average. This covers the price of dining out, drinking, and visiting pubs and clubs. Remember that this expense can increase or decrease according to your level of socialization. Finally, there are many additional costs, including personal care, toiletries, and phone bills, which can cost an average of £150 per month.
If you are a family of two and comparing the cost of living in the UK and Germany, accommodation can be the biggest game changer. A two-bedroom apartment typically costs £870 a month, but this may change depending on the property's size and location. You should budget around £435 monthly for rent if you live with someone else.
Grocery shopping is a staple in families. On average, families spend £200 a month on groceries. Your buying habits and dietary requirements may affect this number. Purchasing in bulk and shopping at cheap supermarkets might help you save money if you spend most of your time cooking at home. Eating out might be costly for your family, so it's crucial to consider your budget carefully.
In the UK, an average household of two pays £50 a month for transportation. However, this can change depending on how frequently you travel and what transportation you use.
If you live in a metropolis and take public transit, you might be able to move around without a car. But always remember that you must save money for parking, insurance, and gas if you require a car.
Finally, additional costs make life in Germany much more affordable. You might also need to set aside money for socializing, leisure activities, shoes, and clothes. Your lifestyle and personal tastes will determine how much you spend on these things, but these things are generally cheaper in Germany.
Knowing the exact expenses of different cities in the UK will give you a better idea regarding the cost of living in Germany versus the UK so you can make the best choice for your family.
Compared to other cities, Cambridge, well-known for its esteemed university, has a higher cost of living. If you take your rent out of the equation, you should earn around £1,200 monthly to live comfortably in Cambridge. The average monthly rent for a one-bedroom flat in the city center is £1,200, more than that in UK cities. Students can, however, locate less expensive lodging in the surrounding districts.
Students often find Durham, in the northeastern region of England, to be more reasonably priced. Without rent, living expenses in Durham, UK, come to about £800 a month. One-bedroom apartments in the heart of the city may be rented for as little as £600 a month, which makes it an appealing option for students advocating that the cost of life in Berlin is cheaper.
The cost of living is affordable in Birmingham, an important municipality in the United Kingdom with various student populations. In Birmingham, England, the median monthly price for necessities for college students is around £1,000. A one-bedroom apartment in the city's heart costs about £800 a month, making it a cost-effective choice for students.
Another factor that equates to the cost of living in the UK versus Germany is life in Cornwall. The southwest English region of Cornwall is renowned for its unhurried pace of life and stunning natural surroundings. In Cornwall, the UK, the median monthly expense for life is approximately £850, excluding accommodation. One-bedroom apartments in the UK are among the more reasonably priced, with monthly rents often hovering around £650.
Lancaster, UK, generally has a lower living cost than life expenses in Germany. With rent excluded, a person's monthly fees are about £900. In the heart of the metropolis, a one-bedroom residence usually runs around £700 monthly.
Portsmouth is renowned for striking a balance between being close to the ocean and offering reasonably priced housing. With rent excluded, the monthly cost of living in Portsmouth, UK, is around £950. The average monthly rent for a one-bedroom apartment in the heart of the city is £750.
Living expenses in Germany have been fluctuating quickly. Following the epidemic, Europe has had a tumultuous few years, with the war in Ukraine contributing to more inflation. Germany's inflation rate over the last 12 months was about 6%, with the biggest increases being in the cost of food and energy. Germany's inflation rate is predicted to stay high through the year 2025.
Given the country's sharp price increases, estimating the cost of living in Germany in 2025 might be challenging. While certain expenses, like taxes and insurance, are relatively constant, others, like meals, beverages, and utilities, will differ significantly. However, the cost of living in Germany is 6.7% lower than that of the UK, so it is still a better choice if you want to live in beautiful Europe.
Your most significant expenditure, no matter where you reside in Germany, is your housing. The cost of lodging in Germany mainly determines a city's affordability. Recent data from Numbeo indicates that you should budget the following amount per month for rent as per the cost of living in Germany:
One expense that varies significantly is rent. The aforementioned averages are for Germany, so don't expect to find similar rates in the heart of Berlin or Munich, where apartment rentals may often cost.
Regretfully, the rent is only one aspect of your monthly lodging expenses. Additionally, you will be responsible for paying for utilities such as water, heating, electricity, and garbage disposal. According to the average cost of living in Berlin, it will typically cost €300 a month for an apartment that is 85 m². These utilities are reasonably priced across Germany, unlike rent.
When a tenant moves into an apartment in Germany, they are nearly usually responsible for setting up their internet subscription, which typically costs €40 per month as per the living expenses in Germany.
One fact about life expenses in Germany is that each family must pay a charge to fund the public broadcasting service. The monthly cost, presently set at €18.36, is assessed per household.
In Germany, health insurance and social security contributions rank second in terms of significant costs behind lodging. You will notice that there are few deductions in your monthly paycheck, which are actually for social security purposes. As mentioned below, a significant portion of your employee take-home pay (about 20% of your gross income) is deducted by health insurance and social security contributions, which makes the life of Germans is expensive:
In exchange for making these insurance contributions as an employee, you obtain comprehensive social assistance in the case of illness, unemployment, or old age, which is the only benefit you obtain for living expenses in Germany. Your sole option as an employee in Germany is to select your health insurance provider before you begin work; otherwise, you are automatically registered in the pension, long-term care, and employment insurance plans. Our preferred health insurance supplier for ordinary employees in Germany is TK Public Health Insurance.
The cost of living in Berlin, Germany, benefits you if you use the public transportation system. This German transport system meets the needs of most foreigners, whether they are traveling for business or pleasure. As a result, the expat community only possesses a few cars. However, the following expenses are to be anticipated if you decide to purchase a car in Germany:
The living costs in Munich, Germany, associated with buying a new car range around €37,790, while a used car will cost you €18,750 if you buy it from a dealership or €13,310 if you buy it from a private seller. After buying a car, you must acquire number plates, register the car, and get an emissions sticker. You should spend no more than €100 on this.
Another significant cost of living in Germany is auto insurance. Depending on the type of automobile, fully comprehensive auto insurance in Germany can cost up to €1000 a year, but on average, it costs about €330.
Your automobile's power and emissions levels determine how much vehicle tax you must pay in Germany. However, as is the norm in Germany, you should budget around €110 per year for the majority of cars.
Living expenses in Munich and other major German cities include fuel as a major impacting factor. Fuel prices in Germany are constantly changing due to the continuing energy crisis. While fuel prices have varied between €1.65 and €2.20 per litre during the past 12 months, diesel prices have varied between €1.58 and €2.32 per liter.
Managing your expenses wisely is crucial when living in a new country. This section will examine the cost of food and drink in Germany in 2024, regardless of whether you choose to eat out or only purchase supplies to prepare at home.
Germany has cheap food prices when compared to several of its neighbors. Germany is the biggest producer of milk, potatoes, and pigs in Europe (Bratwurst anyone?) and manufactures many of its commodities thanks to its massive agricultural sector. As a result, you may anticipate extremely affordable costs at supermarkets nationwide.
Although city-center stores sometimes add a little extra, pricing does not vary considerably between regions.
The Berlin’s life cost is complete with mentioning the food, as the majority of Germans still prefer eating out and going out for drinks with friends and family, even if grocery costs are cheap there. In Germany, eating out does not cost a fortune, much like grocery shopping. The following are some typical costs to anticipate.
Converting funds from your home currency to sterling or euros is a significant expense for foreigners living in the UK or Germany. Even if your bank claims to offer fee-free money exchange, you can be certain that it is taking a cut of the exchange rate it employs.
ACE Money Transfer can assist as it uses the same mid-market exchange rate you can get online through Google. ACE offers great exchange rates and affordable fees if you wish to send money internationally from these countries.
This might be a far better option than depending on your own bank because of the speedy service and cheap costs for transferring your money. With only a little conversion charge to pay, it instantly converts money at the actual, mid-market rate at the time of transfer. Moreover, you can transfer money to more than 100 countries at unbelievable rates.
Moving to another country always requires thorough research on the expenses. The cost living in Berlin is much lower than that of the UK, according to data presented in this blog. However, the end result depends on the preferences of you and your family. Both countries offer great high quality life with excellent career opportunities. If you wish to further lower your living costs as an expat, then you can choose ACE Money Transfer to send remittances. It offers high speed, favourable exchange rates, and minimum transfer fees for international transactions. Sign up on ACE today and enjoy your first free online money transfer to your home country from Germany or the UK.
In Germany, a monthly public transportation pass costs around €70, while in the UK, similar passes average £100, depending on the city.
Utility bills for a family of four in Germany average €300 per month, whereas in the UK, they cost about £250 monthly.
Dining out in Germany is typically more affordable. A main meal at a budget restaurant costs €12, compared to £15 in the UK.
Germany’s progressive income tax rate ranges from 0% to 45%, while the UK's ranges from 0% to 45%, but national insurance contributions in the UK are often lower.
Yes, owning a car in Germany involves annual taxes and average insurance costs of €440, while in the UK, road tax and insurance costs often total £600 or more.
