Relocation intelligence

🇩🇪 Moving to Germany: tax, residency and cost of living

Progressive worldwide taxation system

Thinking of moving to Germany? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
45%
Corporate tax
29.9%
Capital gains
26.375%
Wealth tax
No
Inheritance tax
Yes
Cost of living index
65.3
Safety
6.5/10
Internet quality
7.2/10
Visa-free destinations
192
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

Germany applies a progressive rate of 14% to 45% on worldwide income. Including the Solidarity Surcharge (Solidaritätszuschlag, 5.5% on tax) and church tax (8–9%), effective burden can exceed 47%. No flat-rate expat regime is available.

Residency and visas

EU/EEA citizens enjoy free right of residence. Non-EU nationals can apply for residence permits for employment, family or study. After 5 years a Niederlassungserlaubnis (permanent residence) can be obtained.

Property ownership

Foreigners may purchase real estate in Germany without restrictions. Real estate transfer tax (Grunderwerbsteuer) varies by federal state from 3.5% to 6.5%.

Cost of living and quality of life

Germany scores highly on safety, healthcare and infrastructure. Cost of living is considerably above the EU average, especially in Munich, Frankfurt and Hamburg. Good international schools and high quality of life.

Passport and mobility

The German passport ranked 3rd on the 2024 Henley Passport Index with visa-free access to 192 countries.

Residency and visas

  • Freizügigkeit EU/EWR (EU Freedom of Movement) · Residency in 5 years
  • Blaue Karte EU (EU Blue Card) · €45,300/j · Residency in 3 years
  • Chancenkarte (Opportunity Card) · Residency in 5 years
  • Aufenthaltserlaubnis zur Beschäftigung (General Employment Permit) · Residency in 5 years
  • Aufenthaltserlaubnis für Selbständige / Freiberufler (Self-Employment / Freelance) · Residency in 5 years
  • Familiennachzug (Family Reunification) · Residency in 5 years

Why people move to Germany

  • Strong passport & freedom of movement

    With visa-free access to 192 destinations and full EU mobility, the German passport offers exceptional global reach.

  • Stable economy & labour market

    Germany has Europe's largest economy and offers attractive opportunities for highly qualified migrants through the EU Blue Card and the Chancenkarte (opportunity card).

  • Comprehensive social safety net

    Germany offers a comprehensive social security system including public health insurance, unemployment benefits, pension and child allowance (Kindergeld), accessible to residents.

See how Germany scores for your situation

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Sources

Other destinations

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