Our clients want to become dual citizens in Germany. But moving countries has a way of bringing practical concerns to the forefront. And the most practical concern of all is probably this single question: which place has a lower cost of living?
It’s hard to predict between Germany and the U.S. Both countries have high salaries and a very high standard of living.
Through our research (along with anecdotes from our clients who’ve moved from the U.S. to Germany), we found that living costs in the United States tend to be higher overall than those in Germany.
But everyone’s lifestyle is different, so we created a category-by-category breakdown below. In some key areas, the U.S. is actually less expensive.
1. Overall Cost Indices
- Cost of Living (without rent)
- United States: ~11% higher than Germany
- Cost of Living (including rent)
- United States: ~28% higher than Germany
- Rent Prices
- United States: ~83% higher than Germany
- Restaurant Prices
- United States: ~20% higher than Germany
- Groceries Prices
- United States: ~26% higher than Germany
- Local Purchasing Power
- United States: ~15% higher than Germany
2. Housing and Rent
For most of us, housing is the largest regular expense. So, average rent becomes a great way to compare the costs of living in two countries. And it’s here that Germany comes in far below the U.S..
| Housing Expense | Germany | United States | Difference |
| Apartment (1 bedroom, city center) | €884.61/month (≈$918) | €1,679.60/month (≈$1,743) | U.S. is ~89.9% higher |
| Apartment (1 bedroom, outside center) | €670.35/month (≈$696) | €1,385.96/month (≈$1,438) | U.S. is ~106.8% higher |
| Apartment (3 bedrooms, city center) | €1,660.33/month (≈$1,723) | €2,797.01/month (≈$2,902) | U.S. is ~68.5% higher |
| Apartment (3 bedrooms, outside center) | €1,260.85/month (≈$1,308) | €2,306.83/month (≈$2,393) | U.S. is ~83% higher |
| Utilities (915 sq ft / 85 m²) | €302.55/month (≈$314) | €198.93/month (≈$206) | Germany is ~34% higher* |
*Note: Utility costs are higher in Germany’s average data, but this can vary by region and energy consumption patterns.
Takeaways:
- Rent is substantially more expensive in the United States across nearly all categories.
- While utilities may appear higher on average in Germany, factors such as energy efficiency standards, climate, and housing type can influence actual costs.
3. Groceries
Food is non-negotiable—you have to eat—so calculating the difference in food prices helps determine where you’ll spend less money.
| Grocery Item | Germany | United States | Difference |
| Loaf of fresh white bread (1 lb) | €1.74 (≈$1.80) | €3.15 (≈$3.27) | U.S. is ~82% higher |
| Apples (1 lb) | €1.23 (≈$1.28) | €2.30 (≈$2.38) | U.S. is ~87% higher |
| Potatoes (1 lb) | €0.64 (≈$0.66) | €1.28 (≈$1.33) | U.S. is ~100% higher |
| Water (1.5 liter bottle) | €0.84 (≈$0.87) | €2.13 (≈$2.21) | U.S. is ~154% higher |
| Rice (1 kg) | €3.06 (≈$3.17) | €4.19 (≈$4.35) | U.S. is ~36% higher |
Takeaways:
- Groceries are much cheaper in Germany by and large, but some specialty products might differ from the trend.
4. Eating Out and Restaurants
Groceries are not the only food cost. Costs associated with dining out play a part in the cost of living, too. For some people—due to living situation, time, or preference—might eat most of their meals at restaurants.
| Restaurant Expense | Germany | United States | Difference |
| Meal, inexpensive | €15 (≈$15.56) | €19.28 (≈$20.00) | U.S. ~28.5% higher |
| Meal for 2, mid-range (3 courses) | €65 (≈$67.44) | €72.29 (≈$75.00) | U.S. ~11.2% higher |
| Domestic Beer (1 pint) | €4.50 (≈$4.67) | €5.78 (≈$6.00) | U.S. ~28.5% higher |
| Cappuccino (regular) | €3.46 (≈$3.58) | €5.02 (≈$5.21) | U.S. ~45% higher |
Takeaways:
- Eating out is generally more affordable in Germany, although not by an extreme margin in every category.
- Coffee and beer are noticeably cheaper in Germany.
5. Transportation
Germany is known for its fantastic public transportation network (buses, trams, subways, and regional trains), and the U.S. is a famously car-oriented society.
This expresses itself in a number of ways. Most importantly, civic planning in Germany emphasizes walkability and public transportation in a way most U.S. cities don’t. So, from a lifestyle perspective at least, transportation is generally a much lower cost for Germans than Americans. Fuel prices, however, tend to be higher in Germany due to taxes. That means if you love the freedom that comes with car travel, a move to Germany will mean a substantial increase in cost.
| Transportation Expense | Germany | United States | Difference |
| One-way local transport | €3.10 (≈$3.22) | €2.41 (≈$2.50) | Germany is ~22% higher |
| Monthly pass | €49.00 (≈$50.84) | €62.65 (≈$65.00) | U.S. ~28% higher |
| Gasoline (1 gallon) | €6.58 (≈$6.82) | €3.40 (≈$3.52) | Germany is ~48% higher |
Takeaways:
- Public transport passes are cheaper in the U.S. on average, depending on the city (e.g., New York vs. a smaller metro area).
- Fuel is more expensive in Germany.
6. Childcare and Education
Depending on the composition of your family, this could easily be your biggest monthly expense.
| Childcare Expense | Germany | United States | Difference |
| Private preschool, monthly (1 child) | €418.15 (≈$434) | €1,321.04 (≈$1,371) | U.S. ~216% higher |
| International primary school, yearly (1 child) | €12,952.48 (≈$13,438) | €22,167.81 (≈$23,000) | U.S. ~71% higher |
Takeaways:
- Germany’s public education system is robust and generally inexpensive (or free), while private or international schools can still be an option but at a lower price point than typical U.S. equivalents.
- American childcare fees are notably high, particularly in large cities.
Cost of Living: Germany Is Cheaper Than the U.S.
Cost of living is among the first things most people want to calculate before making the leap across the Atlantic.
And in general, Germany is cheaper than the U.S.
Does that make your dreams of German dual citizenship that much more appealing? Check out our guide on becoming a German citizen here.
