Choosing a German State to Settle In: Guide by Profession and Living Costs

Choosing which German state to settle in is one of the most important decisions, directly affecting job opportunities, take-home income, and the quality of life for the whole family. Germany is a federal state made up of 16 states, each with a very different economic structure, wage level, and cost of living. This guide helps you visualise how to compare states by occupation and budget, so you can choose the place that best suits your circumstances.

Why choosing a state matters for settlers

Unlike many countries, a German work visa or Chancenkarte does not lock you into one fixed state. In principle, holders of a valid residence permit can live and work anywhere in the federal territory. However, your initial choice still matters greatly, since it determines how easily you can find a job in your field.

Each state is its own labour market. A mechanical engineer may have dozens of opportunities in Bavaria or Baden-Württemberg but far fewer options in a more agricultural state. In addition, rental costs between Munich and Leipzig can differ by as much as double. So choosing the right state lets your salary “stretch” much further.

In addition, some administrative procedures, such as qualification recognition (Anerkennung), are handled by state-level authorities. For the same occupation, the responsible authority and document requirements can differ by state. So understanding the specifics of each state helps you prepare your application accurately from the start, avoiding wasted time redoing it.

Overview of the 16 states and four economic regional groups

For ease of comparison, the My Second World team usually groups the 16 states by economic characteristics. This grouping is for reference only, helping you narrow things down quickly before digging into each specific state.

• The industrially strong South: Bavaria, Baden-Württemberg. These are hubs for mechanical engineering, automotive, and high technology, with high wages but also a high cost of living.
• The densely populated, multi-sector West: North Rhine-Westphalia, Hesse, Rhineland-Palatinate. Concentrated in finance, chemicals, logistics, and services.
• The coastal, energy-focused North: Hamburg, Bremen, Lower Saxony, Schleswig-Holstein. Strong in maritime, trade, and renewable energy.
• The affordable East: Berlin, Saxony, Thuringia, Saxony-Anhalt, Brandenburg, Mecklenburg-Western Pomerania. Lower rental costs, with many fast-growing cities.

This grouped view helps you answer the first question: prioritise a higher income or a lower cost of living. From there, the list of states worth researching narrows considerably.

Step-by-step guide to choosing a German state to settle in

To make choosing a German state a systematic process, our team suggests you follow the sequence below. Each step is based on publicly available data that you can verify yourself.

1. Identify your occupational group. You need to know your industry code and area of expertise, for example healthcare, information technology, mechanical engineering, nursing, or a skilled trade (Handwerk).
2. Check labour demand by region. Use the job portal of the Federal Employment Agency to see the number of listings in your field in each state. The number of listings quite accurately reflects how much that state is “hungry” for workers.
3. Compare regional wage levels. For the same position, wages in the South are usually higher than in the East. You should compare them to know your expected income.
4. Estimate the corresponding cost of living. Take your expected salary minus the average rent and living costs of that state to arrive at your “actual usable income”.
5. Check the qualification recognition authority. For regulated occupations (reglementiert), you must identify the correct competent authority in the state you plan to move to.
6. Consider community and family factors. Schools for children, the Vietnamese community, and job prospects for accompanying family members are also important criteria.

After completing these 6 steps, you will have a concise comparison table for 3 to 4 potential states. Decision-making at this point becomes much clearer and far less based on gut feeling.

Choosing a state by common occupational group

Every occupation has its own “map” of opportunities in Germany. Below is a suggested direction based on the economic structure of the states; you should combine this with actual recruitment data before finalising your decision.

• Information technology: Berlin is a startup hub, while Munich and Frankfurt are strong for large enterprises. If you work in IT, you have many options in both the South and the East.
• Mechanical engineering, automotive, engineering: Baden-Württemberg and Bavaria are the “heart” of the industry. This is where many manufacturers and supply chains are concentrated.
• Healthcare and nursing: Demand for workers is high across all of Germany, but the southern states and major cities usually have stronger recruitment incentives.
• Finance, ngân hàng: Hesse, especially Frankfurt, is the financial centre of all of Europe.
• Logistics, ports: Hamburg, Bremen, and Lower Saxony are natural choices thanks to their port systems and trade.

To confirm actual demand by occupation and region, you can check the job listings directly at Bundesagentur für Arbeit. The number of listings under the exact industry code is a more reliable indicator than any advertisement.

Comparing cost of living and wages between regions

Financial factors need to be viewed as a pair: income and cost must be considered together. A high salary in Munich is not necessarily more comfortable than an average salary in Leipzig, since rent takes up a large share of the monthly budget.

The table above only describes relative trends, not absolute figures. You should cross-check with current job listings and rental prices yourself, as the market changes over time. In addition, items such as administrative fees are charged according to the current fee schedule of each authority, so you should check directly with the competent authority.

A practical rule: prioritise “actual usable income” over the nominal salary figure. In addition, factor in commuting costs, insurance, and taxes when planning your finances for the first year.

Qualification recognition and procedures that vary by state

In Germany, many occupations fall under the “regulated occupations” group, such as doctors, nurses, civil engineers, and teachers. For these occupations, you must obtain a qualification recognition decision before practising. It is worth noting that the competent authority is usually devolved to the state level, so procedures can vary.

The foundational step is to check the value of your qualification in the Anabin database, managed by the Standing Conference of the Ministers of Cultural Affairs of the German states. This is where you look up how your school and qualification are classified in Germany. The lookup result is an important basis for every recognition application.

Since the recognition authority varies by state, choosing which German state to settle in should be tied to identifying where to submit the Anerkennung application. So our team recommends deciding on your intended state first, then finding the correct competent authority to submit your application. This approach helps avoid submitting to the wrong place, needing to add documents, and long waits.

Common mistakes when choosing where to settle

During our support work, our team has noticed many people making the same mistakes. Recognising these mistakes early helps you save both time and money.

• Looking only at the nominal salary. A high salary is not really an advantage if rent eats up all the surplus.
• Choosing based on gut feeling or following friends. A state that suits someone else may not suit your occupation.
• Skipping the qualification recognition lookup step. Discovering only after arrival that your occupation is regulated and needing to take extra courses is very costly.
• Not accounting for jobs for accompanying family members. When the whole family moves together, job opportunities for a spouse also need to be considered.
• Underestimating the German-language barrier by region. Some regions require a higher language level for work, so you should prepare early.

So make your decision based on data and your own circumstances. You can fully refer to the official portal Make it in Germany to cross-check conditions and the latest updates before finalising.

Summary

Choosing which German state to settle in should be approached systematically, not based on gut feeling. Identify your occupational group, check labour demand by region, compare wages against cost of living, check the qualification recognition authority, and consider family factors, in that order. When you put actual take-home income ahead of the nominal salary, the picture becomes far clearer.

Next steps: you should make a short comparison table for 3 to 4 potential states, then verify each criterion against official sources. If you need a personalised path matching your occupation and circumstances, contact the immigration advisory team at My Second World to be accompanied from choosing a state all the way to settling into life in Germany.