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DRIVING

How much does it cost to get a driving licence in Germany?

When it comes to getting behind the wheel, Germany has a reputation for being outrageously expensive. Here's a breakdown of the costs you can expect to get hold of a driver's licence in the Bundesrepublik.

German driving licence
Two German driver's licences are held up in front of a car. Photo: picture alliance/dpa | Ole Spata

We’ve heard it said that when young Germans want to learn to drive, they usually book a flight to New Zealand first. Apparently, the cost of a round-trip to one of the furthest corners of the earth and a course of lessons down under still ends up being pretty much on-par with what they might pay for lessons at home – and they get the added bonus of an exotic trip. 

Now, while we can’t currently verify how many people are heading to Auckland to get behind the wheel, we can tot up some of the costs of getting a driving licence here in the Bundesrepublik.

Obviously, if you’re simply exchanging a licence from another country for a German one or renewing an old one, the costs will be minimal. But learning to drive from scratch and taking both a theory and practical test can add up pretty quickly.

Here’s a rough overview of the costs you’ll need to budget for when getting your first driving licence in Germany. Bear in mind that there are a lot of variables here though, depending on your natural skill as a driver, the size of city you live in and the federal state. 

What type of licence do I need?

There are a huge range of possible driving licences to apply for in Germany, ranging from a scooter to an HGV and everything in between. The vast majority of people will want to apply for a Class B licence, however, as this entitles them to drive an ordinary car. 

The cost of getting a Class B licence

  • Basic tuition fee

This fee generally covers both admin costs and theory lessons. According to financescout24, the average basic fee in Germany is €200

  • Mandatory ‘special trips’

Before you take your test, you’ll need to rack up at least twelve driving hours of so-called ‘special trips’ designed to help you develop all the required skills you’ll need as a driver. These include five hours ‘over land’, which basically means trips through various rural areas, four hours on the motorway and three hours of nighttime driving. 

Special trips tend to cost a little more than ordinary lessons, so you’ll need to budget around €45-60 for each of these, depending on where you live. 

  • Ordinary driving lessons

Of course, learning to drive is about more than just a few trips on the motorway or driving in the dark. You’ll also need to learn everyday driving skills and practice these with a qualified instructor. Unlike in other countries, like the UK, in Germany, you are not allowed to practice with an experienced driver and therefore have to pay an instructor every time you want to drive before you get your licence.

How many lessons you need will of course depend on how quickly you pick up the skills needed. According to Verkehrswacht e.V., an association of driving instructors, people tend to need a minimum of 30 hours of general lessons split into fifteen two-hour lessons.

(Confusingly, a driving ‘hour’ is only 45 minutes, so this would equate to 15 lessons lasting 1.5 hours each.) 

The prices for these ordinary lessons once again vary greatly from state to state and in the major cities, but expect to budget anywhere from €20-€45 per 45-minute session. 

  • Practice materials 

To help you pass your theory test, you’ll need access to learning materials such as apps, books and online practice tests. Handelsblatt estimates that these will set you back between €60 and €80

  • Theory and practice exams 

According to a recent study by price comparison site Compare the Market, Germany is one of the most expensive places in the world to take your driving tests, coming sixth in a survey of 25 different countries around the world. (New Zealand is #21 – just sayin’.) 

For the German theory test, you can expect to pay €22.49 and for the actual driving test, you’ll have to shell out €116.93. That brings the total for both tests to around €140. 

  • Eye tests

For obvious reasons, German law specifies that applicants for most types of driving licence need to get their vision checked by a professional. Luckily, this is one of the more reasonable outlays when learning to drive: the price for this kind of eye test is currently set at a rather random €6.43 and you can find the test at any optician’s. 

READ ALSO: What you need to know about getting a German driving licence

  • First-aid course 

Another mandatory part of getting a driving licence in Germany is taking a specific type of first-aid course. This course is called “life-saving measures at the scene of an accident” and can be booked as a package alongside the eye test.

Since these courses are generally offered privately, the prices do vary, but you should budget anywhere from €14.50 to €50 for this. 

  • Getting the licence

Once you’ve passed your tests and ticked all the other boxes, the only thing left is to get your licence. First, you’ll need a passport photo, which will cost around €5 from an official photo booth, and then you’ll need to apply for the licence at your local Road Traffic Authority, which can cost anywhere between €40 and €70

READ ALSO: Starting (nearly) from scratch: learning how to drive stick shift in Germany

So, how much should I budget overall?

According to business daily Handelsblatt, most people learning to drive in 2022 should budget anywhere between €1,500 and €2,400 for a Class B licence. But there is some disagreement on this. 

Rainer Zeltwanger, chairman of the Driving School Association, says the costs could be even higher due to the additional hygiene measures necessitated by Covid-19. 

“We advise our customers to reckon with €2800 and €3500 for Class B – including external costs,” he told Handelsblatt. Another reason for this is that driving schools have been hiking their costs in recent years. 

What are the cheapest and most expensive places to learn to drive?  

According to insurance company ERGO, Bavaria and Baden-Württemberg are the most expensive states to get a driving licence, while Berlin, Brandenburg and Saxony-Anhalt are the cheapest. You can expect to budget about €700 extra to learn to drive in a pricier state than you would in the cheaper regions.

The Moving International Road Safety Association conducted a survey of the prices of various different driving schools back in 2020 and concluded that the average cost of obtaining a licence was €2,182. 

Woman learning to drive

A driving instructor tutors a student in Hamburg. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

However, they found distinct differences between medium-sized cities and major metropoles. In a medium-sized town or city, learner drivers could expect to pay an average of €2,237 for their licence, while in bigger cities the average was €2,121. This is undoubtedly due to the increased competition in bigger urban areas.

Combining these factors, a place like Berlin that is both a large city and a cheap state would probably be one of the cheaper places to learn to drive. 

READ ALSO: ‘A year-long ordeal’: What I learned from getting my driving licence in Berlin

What happens if I fail my test? 

If you fail either test, you can easily retake it – but you’ll have to pay another €22.49 for each additional theory test or €116.93 for each additional practical test. You’ll probably also want to refresh one or two skills with a driving instructor, so you should also budget some money for additional lessons.

Until 2008, people who failed their test three times were subject to a three-month ban on retakes, after which they had three additional chances to take the test. People who failed the three tests a second time were forced to take a medical and psychological check-up to see whether they were fit to drive.

This legislation has now been scrapped, meaning you can retake as many times as you need to. However, if your driving instructor thinks there may be physical or psychological issues that make you unfit to drive, you may still have to take the medical and psychological check-up. This could set you back anywhere between €350 and €750. 

Can I do my driving test in English? 

Your theory test can be taken in English, but your actual driving lesson can’t – and it also isn’t possible to hire an interpreter as they may offer you assistance without the driving instructor knowing. 

Is it actually cheaper to go to New Zealand? 

According to Jetcost.de, the cheapest return flights available from Frankfurt to Auckland are currently around €1,200. Apparently, getting a driving licence there could cost anywhere between €1,400 and €2,600.

So, at the cheaper end, flights and a driver’s licence in New Zealand could set you back about the same as lessons and a licence in Germany – especially if you live in one of the more expensive states. 

A word to the wise, however: if you do take the ‘down under’ route, you will need to exchange the licence when you get back, so be sure to budget around €35 to €42,60 for that! 

READ ALSO: How do I convert my foreign driver’s licence into a German one?

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Member comments

  1. The shocking thing is there are no required “official lessons” where I come from. My dad taught me in a few weeks. You study a manual and pay a written test, then a driving test. All for less than $100 and frankly, I find for all German driver’s spend on lessons, they are awful drivers. They don’t maintain lanes, often wait until the last minute to change lanes and end up cutting people off, the don’t understand the concept of “zipper”, and are generally rude and lack situational awareness around them as far as other people being on the road with them. German friends blame all the newcomers from the eastern bloc and new refugees, but don’t they have to take the same classes? The whole driving along and then slamming on the brakes to let someone coming in from the right is the most ridiculous rule of all. Ughh. I’m so defensive here because I anticipate crap drivers all around me and they don’t disappoint.

  2. New Zealand is not a good place to get a licence.

    I would be concerned about the person’s driving skills when they return to Germany.

    (A Kiwi)

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For members

MONEY

What to know about cryptocurrency in Germany

Germany has been dubbed the most crypto-friendly country in the world. We break down why that is, and what you should know about cryptocurrency in Germany.

What to know about cryptocurrency in Germany

As with all of our financial and tax summaries, this is a guide on regulations only. For financial advice which is personalised to your situation, please contact an accountant or other specialist. Please note also that EU financial regulators have warned that many crypto-assets are highly risky and speculative. Find out more information here.

At first glance, Germany seems an odd place to be a cryptocurrency haven. Only 17 percent of people in Germany invest – way behind the percentages seen in other countries – which may go some way towards justifying the country’s reputation as a land of risk-averse savers.

Cryptocurrency, often called crypto for short, is considered by many investment analysts to be one of the riskiest and most volatile investments a person can own.

Concerns have also been raised over the environmental impact of cryptocurrencies.

There are countless types of crypto on the market these days. What each one has in common is that it is digital and secured using cryptography, meaning they can’t be counterfeited. 

Even the three biggest and most well-known cryptocurrencies – Bitcoin, Ethereum, and Ripple – are prone to huge sudden spikes and falls in value. It’s also a market that has seen some, like the LUNA cryptocurrency last month, crash completely.

Yet, bucking national stereotypes, Germany has some of the most favourable laws in the world for investing in these high-risk assets.

READ ALSO: What you should know about investing in Germany

Germany’s crypto tax advantages

Crypto exchange comparison site Coincub recently named Germany as the world’s most crypto-friendly country, with Singapore and the United States rounding out the top three.

A big reason for this comes down to favourable tax laws. Normally, when someone in Germany sells a regular stock or ETF asset at a higher price than they bought it for, their brokerage will automatically withhold 25 percent of their gain in tax.

Euro notes bitcoin coins

Euro notes and bitcoin coins on a laptop. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

But following tax guidance issued by the Federal Ministry of Finance last month, certain gains in cryptocurrency could face absolutely no taxation at all.

Firstly, the ministry has affirmed that any profit of less than €600 faces no tax. More significantly though, cryptocurrency that someone in Germany has held for at least a year faces no tax at all – no matter how big the gain is when that person sells it.

Why is the law so favourable in Germany?

One variable is political. The liberal Free Democrats tend to attract a sizeable number of votes from the very demographics more likely to hold crypto. While the FDP is in a three-way coalition with the progressive Social Democrats (SPD) and the Greens, FDP leader Christian Lindner currently holds the German Finance Ministry.

During the 2021 election campaign, Lindner made regulating and attracting crypto investment a big part of the FDP platform and coalition negotiations.

“I think the German government understands how to make money better than a lot of other countries,” says the man behind crypto Youtuber The Modern Investor, a channel with over 225,000 subscribers.

“A lot of people in the crypto space are very internationally mobile,” he tells The Local. “If they choose to live in Germany for the favourable investing conditions, they’re going to be spending money in German supermarkets and buying German services. The money the government misses out on in taxes tends to go right back in the system.”

“If cryptocurrencies continue to take off globally, Germany will eventually be seen as a genius for figuring out how to attract this money and keep it within its borders,” he adds.

Germany’s crypto niche to go mainstream?

Cryptocurrency is still a niche investment in Germany. While only 17 percent of Germans own stocks, only about 2.6 percent own cryptocurrency.

German crypto investors typically skew younger, with a third of all German crypto investors being 34-years-old or younger. The more a person makes, the more likely they are to hold crypto as well, with two-thirds of all German crypto investors earning €800,000 a year or more.

That narrow niche is still big within the crypto community itself though. Around nine percent of the world’s Bitcoin nodes – the computers that run the secure list of transactions using that currency on a digital ledger known as the blockchain – are in Germany, and 14 percent of Ethereum nodes, another major cryptocurrency. That’s second only to the US.

Cryptocurrencies

A tablet screen displays the value of various cryptocurrencies in the Coinbase app. Photo: picture alliance/dpa | Fabian Sommer

Yet, while German ownership is still small, the community is visible enough to make others curious. That goes for even the traditionally risk-averse savings banks, or Sparkassen – where many Germans park their savings. The Savings Bank Association says around 10 percent of its regular customers already hold cryptocurrency, leading them to start offering customers the chance to invest in a crypto wallet directly from their checking accounts.

Many of the online brokerages popular with Germany-based investors, such as Trade Republic, Scalable, and DKB, also offer cryptocurrency wallets alongside their options to buy more traditional products like stocks and ETFs. Using their smartphone apps, crypto can typically be bought and sold with a few short clicks.

READ ALSO: How to protect your savings against inflation in Germany

The Modern Investor says that’s part of a culture that’s increasingly viewing crypto as just another normal part of the investing landscape. While crypto suspicion is still high globally, Germany has simply chosen to accept that crypto is here to stay, and has decided to benefit from it. 

“Germany has been one of the very few countries that have actually put forth cryptocurrency regulations. So a lot of internationally mobile investors have run to Germany as a bit of safe option,” the Youtuber says.

“Many countries don’t have any regulations at all. That makes things even less predictable. What happens to a crypto investor in the US or China if either of those countries simply ban it tomorrow? With Germany, people know that’s simply not going to happen now.”

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