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Finances

When you come to Germany, you will of course want to feel financially secure. Generally, people with a university education earn a living wage according to their academic qualifications and work experience. At the same time, life in Germany is comparatively inexpensive and inflation low – while relief measures have been taken to mitigate the effects of higher inflation rates caused by crises like the war in Ukraine.

Salary

Your income will depend on your academic qualifications and experience, your employer and your level of responsibility. Moreover, state universities and publicly funded research institutions will pay you in accordance with predefined salary scales that align with your academic background and work experience.

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Confident young Indian woman alone at a desk on a laptop. A woman that is happy about receiving her salary in Germany.

Taxes

If you work and earn money in Germany, you will also pay your taxes here. Germany has double taxation agreements in place with many countries so that you will not be taxed again in your home country. Filing a tax return allows you to declare any expenses and thus get some of the taxes you have paid returned to you.

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Man sitting on a laptop and talking on the phone. He is busy with claiming the taxes.

Cost of living

Depending on which German city or town you live in, costs for rent, food or other necessities may vary. In general, however, the cost of living is comparatively low in Germany due to good salaries and affordable prices on basic services.

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Young man picks up a can while shopping in a modern supermarket.

German money-saving tips

Regardless of current inflation rates, moving to a different country can be expensive. Considering Germany’s reputation as “Sparweltmeister” (world champions in saving money), we have collected some simple tips for watching your budget – and getting to know the country in the process.

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