For many families considering a move to Germany, or for those planning to start a family in the country, one of the most pressing factors to consider is the cost of childcare.
Incoming families or parents-to-be will be glad to learn Germany stands out as one of the most affordable places in Europe to have children, according to data from the OECD.
While there are some regional differences and exceptions, for most families – and especially those with children over three – Germany offers a level of financial support and affordability unmatched almost anywhere else in Europe.
Comparing child benefits
Germany’s child benefit, known as Kindergeld, is among the highest in Europe. In January 2026 the monthly figure is rising from €255 to €259 per child per month, amounting to over €3,100 per year for each child.
These payments are available to all parents or guardians of minor children residing in Germany, regardless of nationality, provided they apply through the Family Benefits Office (Familienkasse).
If you apply late, payments can be made retroactively for up to six months.
READ ALSO: What changes for families in Germany in 2026?
To put this in context, only Luxembourg offers a higher standard monthly child benefit, at €307.35 per child, with additional supplements for children over six.
Belgium’s basic rate is currently €184.62 per month (in the German-speaking region), while Sweden pays around €120 per month per child, and Spain offers just €25 per month, mainly for low-income families.
France, meanwhile, only pays child benefit from the second child onwards, with the amount dependent on household income.
Childcare costs in Germany
Where Germany truly excels is in the affordability of childcare.
According to the OECD, the average gross annual cost of centre-based childcare for two children in Germany was just €552 in 2023 – the lowest in the European Union.
READ ALSO: What parents can expect to pay for daycare in all 16 German states
The OECD figures were based on a comparison model which looked at families with two working parents earning the average national wage, and two children typically aged two and three.
The net annual cost for parents was calculated by taking the gross annual fee and subtracting the value of the childcare benefits and tax breaks available to families.
After government support was factored in, the average German two-earner household paid just €430 for childcare in a daycare (Kita) or similar pre-school facility for two children in 2023, according to the OECD.
In other words, German families with two parents in work spend just one percent of their household income on childcare on average.
Comparing Germany with the rest of Europe
The contrast with a number of other European countries is staggering.
In the Netherlands, for example, the gross annual cost of childcare for two children is €39,229, with net costs for a two-earner family of €15,915 according to the OECD calculations – over 35 times higher than in Germany.
READ ALSO: The things they don't tell you about raising kids in Germany
In Switzerland, the gross cost is €64,211, with net costs of €27,551 for two earners (28 percent of income). In the UK, the net figure for two children is €13,622 (25 percent of income).
Even in France, where the state provides significant support, net childcare costs for two children are €6,523 per year, or 15 percent of household income. The net figure in Luxembourg, despite the generous child benefit arrangements, is €6,274.
In Spain, the OECD figure is €2,452, or eight percent of income.
At the lower end of the scale, the net costs for childcare for two working parents with two young children are €1,254 in Croatia, €849 in Estonia and €663 in Bulgaria.
Additional support for families
Germany’s support for families doesn’t stop at child benefit and affordable childcare. Parents can also claim parental allowance, a child supplement for low-income families, relief for single parents and tax allowances for children.
According to the German Institute of Economics (DIW), Germany spent more than €1,600 per inhabitant on family benefits in 2022 – almost double the EU average, and the third highest amount in Europe after Luxembourg and Denmark.
What foreign residents need to know
- Application is essential: Child benefit is not automatic in Germany; you must apply through the Familienkasse.
- Eligibility: All parents or guardians of minor children living in Germany can claim Kindergeld, regardless of nationality.
- Retroactive payments: If you apply late, you can receive up to six months’ worth of payments retroactively.
- Regional variation: While most childcare is very affordable, check your state’s rules, especially for children under three.
READ ALSO: The words you need to understand Germany’s childcare benefits
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