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How to save money in Germany #

Saving money is a broad subject that usually calls for a closer look at your lifestyle and spending habits. In this guide, however, we will share some practical tips for saving money in Germany without asking you to eat out less or cut back on shopping.

1. Pay less taxes and contributions #

File a tax declaration every year #

Most people get a refund usually around €1,000.
You can deduct things like:

  • Commuting and relocation costs
  • Work equipment and training expenses
  • Pension and insurance payments

Use English-friendly tax software such as SteuerGo or Taxfix.

Save for Retirement #

Pension contributions are tax-deductible, meaning you pay less income tax while securing your future.

Lower your health insurance costs #

  • If you’re from the EU, you can use your EHIC card.
  • Compare public insurers’ “Zusatzbeitrag” rates you can save up to €500/year.
  • If eligible, Künstlersozialkasse (KSK) covers half of your health and pension insurance.
  • Consider private health insurance only after professional advice.

Avoid church tax #

If you’re officially part of a church, you pay 8–9% of your income tax as “Kirchensteuer.” Leaving the church legally ends this tax and saves you a few hundred euros yearly.

How to save money in Germany

2. Spend Less on Housing #

Check if your rent is too high #

Use a Mietspiegel (rent limit calculator) to see if you’re paying above the legal limit. If you are, you can ask for a rent reduction through a Mieterverein or services like Conny.

Compare utilities #

Change your electricity and gas provider every year using Verivox or Check24. You can save €100–€200 yearly and get bonuses for switching.

Don’t pay the TV Tax (if eligible) #

If you receive Bürgergeld or BAföG, you can apply for an ARD/ZDF contribution exemption. Use this form to stop paying TV tax

3. Save on Transportation #

Use the Deutschland Ticket #

For €58/month, you can travel on all public transport across Germany unbeatable for regular commuters.

Cycle or walk when possible #

Germany is very bike-friendly. You’ll save on fuel, parking, and gym memberships. Read our guide how to buy a cycle or bike in Germany

If you drive, optimize Car costs #

  • Compare car insurance annually
  • Pay yearly instead of monthly to get discounts
  • Use car-sharing or rent a car when you really need one

4. Optimize your Finances #

Choose a Fee-Free Bank #

Avoid banks with high monthly fees. Great options include:

  • N26 (digital, English support)
  • ING
  • DKB
  • Commerzbank (free with €700/month income)

You can save up to €150 per year.

Combine or Review your insurances #

  • Must-have: Liability insurance (Haftpflicht) it protects you from costly damages.
  • Optional: Mobile phone, legal, or travel insurance.
  • Don’t buy all policies from the same company in case you need to file a claim.

5. Smart everyday savings #

Compare prices before renewing contracts #

Once a year, check cheaper offers for:

  • Internet
  • Mobile plans
  • Energy
  • Insurance

Use Tarifcheck, Check24, or Verivox to compare.

Pay yearly instead of monthly #

Many services (insurance, gym, public transport) give discounts for annual payments.

Take advantage of Discounts #

  • Students: Always ask for “Studententarif” or “Studentenrabatt”
  • Employees: Check if your company offers Corporate Benefits discounts

6. Share, Borrow, and Use Free Stuff #

  • Join nebenan.de to borrow tools or buy secondhand items locally
  • Use public book exchanges or get a library card (around €20/year)
  • Join a Sportverein (sports club) — memberships start from €6/month, much cheaper than gyms

Final Tip #

Saving money in Germany is about being informed and proactive.
Check your contracts once a year, compare options, and take advantage of the many legal ways to reduce costs. Over time, these small changes can save you thousands of euros every year.

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