Basic expenditures in Germany are slightly higher than in other leading European cities, but wages tend to be higher in many cases too.
Like any other cosmopolitan and well-developed urban city, rent in German cities swings from over-the-top to modest. Cost depends on your chosen location: Munich is the most expensive city with rent averaging €10 per square meter; Berlin remains the ideal expat location and the exception among Germany's large cities offering no more than €4 or €5 per square meter.
Almost 30 percent of income goes to cover rent and utilities. A ballpark figure of rent in Germany for a two-bedroom apartment is 900 euro a month. A three-bedroom house may cost 1,600 to 2,000 euro; condominium units are available for purchase or rent.
Other expenditures
The next expenditure on the list after rent is food, personal effects and transportation expenses. Shopping is much like in the US and other urban European cities, modern malls are everywhere, branded items are pricey and essentials are widely available. For those fond of tailors, remember that clothes are specified in centimeters and not sizes.
A month's water supply can cost up to 100 euro for a family. Bread costs 2 to 3 euro per loaf and milk costs 70 cents per liter. Fruits are expensive even if you buy them in small stores in your neighborhood.
The notion that Germany is ultra posh stems from leisure activity costs: going out, dinner and the nightlife. A cup of coffee out in Germany costs at least 2 euro; add another euro for a latte. In addition, many cafes charge for a glass of water (€1.50), while other European countries can spare a free glass of water. For a nation known around the world for its Octoberfest, beer can be pricey. Half a liter of beer costs between €2 and €4, which you can enjoy in beer halls, beer gardens and pubs all over Germany. A decent meal, which you can get for €10 to €20, is a good idea before you start on the beer though.
Traveling around the neighboring countries is great idea when in Germany. Travel may cost as little as 100 euro, but come winter, where fuel costs are high, expect to add more to your travel budget.
Tax
Earnings and status determine the individual tax rate. In Germany, taxes go as high as 44.3 percent for an individual. There are also deductions due to Value Added Tax (VAT). If you own a business that trades, then trade tax is also due.
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