Saving money the German way: a complete guide for expats

There’s a lot to spend money on: tourist attractions, rent, coffee shops, travelling. It may seem that saving money in Germany is impossible. We can show you some ways, though. Read this guide to saving money abroad and becoming a financial guru (almost).

How to save money in Germany: Discounts

Each small discount totals hundreds of euros saved in the long term. So don’t overlook them — it’s a way to increase your savings in Germany.

Student discounts in Germany

For students, money-saving options in Germany are almost unlimited. So use them and stop overpaying.

Discounts for everyone

Even if your school years have already passed, there are still some money-saving options in Germany for you.

• Explore mydealz.de to find current discounts.
• Check discounts and compare prices on geizhals.de.
• Buy second-hand. Start with checking these 5 second-hand clothes stores in Berlin.
• When buying groceries, go to Lidl, Aldi, and other discount supermarket chains. They offer lower prices, and you can download their apps to receive special offers.

Learn how to save on grocery shopping here.

There are no special discounts for foreigners, but sales are common — wait for them and buy things smartly.

With our guide to saving money, you can support your loved ones back home more. Send money from Germany with fast, secure and beneficial Profee transfers – try out today.

How to save money in Germany: Taxes

There are several ways on how to save taxes in Germany or get extra payment from the employee.

Work-related expenses coverage

Work travel, equipment, insurance, relocation—the company can partially cover these expenses through a tax deduction.

For example, if you move to Germany from abroad, your flight tickets and first expenses for accommodation may count as work expenses and be paid by the employee. It’s one of the tax benefits in Germany for foreigners that you can take real advantage of.

Remember that saving money in Germany is not only about spending less but also about knowing your rights.

Double taxation agreements

Check if your country entered into the DTA with Germany. If yes, you can get a credit or exemption from paying taxes back home or in Germany. It’s especially useful if you earn income in both countries and wonder how to save taxes in Germany.

Personal deductions

There are various tax benefits in Germany for foreigners and locals. For example, single parents have a special tax scheme with a tax relief of 4,260 EUR per year. Personal deductions depend on your tax class:

To know how to save money in Germany, identify your class and search for class-specific deductions.

Read more about German tax classes here.

How to save money in Germany: Housing

When people ask “What is cheap in Germany?”, rent is definitely not the answer. So, knowing how to manage your housing expenses can make your financial life less stressful.

Shared apartments

If you’re moving solo, search for the shared apartment options (WG/Wohngemeinschaft) in your city. Of course, frugal living in Germany has its own price: you’ll have to limit yourself and adjust some daily habits, but your wallet won’t be empty by the end of the month.

Search for WG here: wg-gesucht.de, huurwoningen.com, and similar websites. Facebook groups sometimes publish available rooms, too.

Student dorms

Students can apply for dormitory places; it’s much cheaper than renting a flat. But you have to send the application really early because there are fewer rooms for students who need them.

If you were rejected, contact your university — they may be collaborating with housing companies and can help you with the apartment search. However, there is no student discount in Germany for rent, so you’ll have to pay the full price.

Cut the bills

Utility bills are a nightmare for expats. To lower them and lead a frugal living in Germany, follow the tips we’ve covered in previous articles:

• Save on electricity.
• Save money on your gas bills.
• Cut the utility bills without sacrificing comfort.

Saving money in Germany on rent is possible when you pay attention to how you live.

Pro tip: To check whether you’re overpaying for rent in Berlin or not, go to mietencheck.de.

How to save money in Germany: Habits

Make some efficient spending habits to take care of your savings in Germany.

Long-term financial planning

Most people have several important milestones in their lives:

• buying property,
• childbirth,
• retiring.

Set financial goals and start preparing for it in advance. Open separate accounts for savings in Germany for each occasion and earn interest. Start now before it’s too late.

Lead a cost-conscious lifestyle

To start saving money in Germany, prioritise needs over your wants. This shirt may be really pretty, but will you want to wear it next year?

Essential tips:

• If the weather is nice and the city is small, choose walking and biking over public transportation or cars.
• Quality > quantity. Having one sweater that will look good for five years is better than buying a new sweater each winter; ecology and budget-wise.
• Check your subscriptions. Most people don’t know they are paying for services they don’t even use.
• Became a garden fairy. Growing your own food is good for the environment and is a great money-saving option in Germany.

You shouldn’t lose your comfort to have a frugal living in Germany — just change your habits slightly.

The power of sharing

Your savings in Germany can go up if you invite other people to be budget-conscious with you.

• Share flat and utility bills.
• Buy family subscriptions for services you use.
• Cook together with your flatmates.
• Join referral programmes and get rewards. For instance, you can invite friends to use Profee, an online remittance service, and receive 25 EUR once they meet all the requirements.
• Swap clothes or gadgets with friends instead of buying new.
• Create a shared budget board with your housemates using free apps like Splitwise or Tricount.
• Buy in bulk together to benefit from wholesale prices.

Travel smartly

Every expat wants to travel across Europe after moving to Germany. You can do it without breaking the bank:

• Book trains in advance using Deutsche Bahn Sparpreis or use the Deutschland ticket (49 EUR/month) for unlimited regional travel.
• Try carpooling apps like BlaBlaCar for long-distance trips.
• Use FlixBus or FlixTrain for budget-friendly travel across Europe.
• Sleep cheap by booking hostels, Airbnbs with friends, or using Couchsurfing.
• Travel off-season.

FAQ — how to save money in Germany

Is it easy to save money in Germany?

It’s not, realistically speaking. But if you balance expenses, have several sources of income, and follow this guide to saving money, you can build a strong budget.

Is 3,000 EUR enough for a month in Germany?

Yes, the bare minimum is around 1,000 EUR if you share the flat or live in a dormitory. If you don’t overspend, 3,000 EUR will be more than enough.

How to save money in Germany?

• Buy Deutsche Bahn cards and public transportation passes.
• Ride a bike.
• Monitor discounts on mydealz.de.
• Apply for personal tax deductions and employer allowances.
• Shop in the second-hand stores.
• Share expenses with your friends and flatmates.

Can you get free water in Germany?

Yes, there are free water stops in parks across Germany.

How to reduce heating costs in Germany?

• Improve insulation.
• Buy a smart thermostat.
• Close curtains during winter to keep the room warm.
• Purchase energy-efficient appliances.

How to make money in Germany as a foreigner?

Foreigners are welcomed in every industry, especially when they speak German.

• You can work in a taxi or delivery.
• If you have a diploma and work experience, write a strong CV and apply for a job online and attend industry events for networking. IT, healthcare, teaching and more — all doors are open.

What is cheap in Germany?

Germany is expensive, but some items are relatively cheap. Among them:

• local alcohol,
• cosmetics,
• some clothing brands,
• coffee,
• German courses.