City Comparison · Updated May 2026
Germany
COL index 72.8
United Kingdom
COL index 87.6
Berlin vs London — Cost of Living, Salary & Tax Compared (2026)
The verdict
Living in Berlin is 16.9% cheaper than London for the same lifestyle.
Based on Q1 2026 COL index and median single-person expenditure.
Side-by-side stats
| Berlin | Metric | London | Δ |
|---|---|---|---|
| 72.8 | Cost of living index | 87.6 | +20.3% |
| €50,000 | Median gross salary | €50,000 | 0.0% |
| €33,725 | Net at €50,000 gross | €37,714 | +11.8% |
| €1,500 | Rent — 1BR centre | €2,450 | +63.3% |
| €2,206 | Monthly COL (single) | €3,333 | +51.1% |
| €46,326 | PPP — net / COL | €43,053 | -7.1% |
| 32.5% | Effective tax @ €50,000 | 24.6% | -24.5% |
Monthly expenses — paired
Salary equivalence
€50,000 gross in Germany = €2,810 net monthly.
To have the same purchasing power in London, you would need roughly €54,073 gross in United Kingdom (≈ €3,382 net monthly, adjusted for cost-of-living index).
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Pros & cons
- +Significantly cheaper rent (€1,500)
- −High rent-to-income ratio (53.4%)
- −High cost of living (index 88)
- +Favourable tax rate (24.6%)
- −High rent-to-income ratio (78.0%)
The verdict
Across the data, London delivers a higher take-home on a €50,000 gross salary; Berlin carries a lower cost-of-living index; London has the lighter effective tax burden; Berlin wins on purchasing power after costs are netted out. If purchasing power is your north star, Berlin edges it.
Frequently asked
Is Berlin cheaper than London?+
Berlin is cheaper. Cost-of-living index: Berlin 72.8, London 87.6 — a 16.9% difference (Q1 2026).
What is the cost of living difference between Berlin and London?+
Berlin sits at 72.8 on our COL index, London at 87.6. That works out to roughly 16.9% — Berlin being the cheaper of the two.
Is Berlin a good place to live compared to London?+
It depends on priorities. Berlin delivers €33,725 net on a €50,000 gross salary at a 32.5% effective tax rate. London delivers €37,714 at 24.6%. Centre 1-bed rent: €1,500 vs €2,450.
How do salaries compare in Berlin vs London?+
On a €50,000 gross salary, take-home is €33,725/year (€2,810/month) in Berlin and €37,714/year (€3,143/month) in London.
Which city has lower taxes, Berlin or London?+
United Kingdom has the lower effective rate at €50,000: Germany 32.5%, United Kingdom 24.6%.