Germany is a federal state in which the regions have considerable autonomy: school curricula, public holidays, some tax rates and rents differ markedly between the 16 federal states.

The economic powerhouses of the south: Bavaria and Baden-Württemberg

The south, with Munich and Stuttgart, is known for high salaries, strong industry (BMW, Porsche, Bosch, Siemens), plenty of nature and a demanding school system. The price is the highest rents in the country and fierce competition for flats.

The financial centre in the middle: Hesse

Hesse, with Frankfurt am Main, is the financial centre of continental Europe, a major aviation hub and one of the world's most important internet exchange points. It attracts professionals in banking, fintech and logistics and has excellent transport links.

The industrial heartland: North Rhine-Westphalia

Cologne, Düsseldorf, Dortmund and Essen form one of Europe's largest urban areas. NRW offers moderate property prices, a large job market in trade and industry, and an open, multicultural population.

The north, the capital and the east

Berlin remains a magnet for IT start-ups and creative professions, with an international atmosphere but overstretched administration. Hamburg attracts people with its port economy and green spaces. In the east, Saxony, with Dresden and Leipzig, is developing into a centre for microelectronics with affordable housing.

What to check

  • Compare typical salaries with the actual rent including heating and service charges in the region.
  • Consider the state's school system if you are moving with school-age children.
  • Check the number of public holidays (13 or 14 in Bavaria depending on the area, 10 in Berlin).
  • Assess whether you need a car based on how dense local public transport is.

Example situation

An IT family compares offers of €85,000 in Munich and €72,000 in Leipzig; because a large flat in Leipzig costs about half as much, the family has more left over each month there.

Next step

Do not focus on gross salary alone; the balance between income and housing costs is what determines your family's quality of life.

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.