International Students Bring Germany a €23.1 Billion Fiscal Surplus

More international students remain in Germany permanently than earlier estimates suggested, according to a new study by the German Economic Institute, or IW. The finding also points to a significant long-term gain for the public purse.

Around one-third of international students who start university in Germany stay until retirement, the study says. After successfully completing their degrees, 45% initially become skilled workers on the German labor market.

The researchers examined detailed data from the official microcensus for the first time. Earlier estimates, including those from the OECD, reached similar conclusions but relied on different data.

The calculations focus on the nearly 82,000 international students with plans to graduate who began their studies in 2023. Over their working lives, that group is expected to generate about €127 billion in economic value. Public finances would retain a projected surplus of €23.1 billion, because the students’ taxes and social contributions would exceed the state’s spending on them, including university places and social benefits.

The study estimates that graduates pay more in taxes and contributions than they previously received in state benefits just two years after completing their degrees. The newly calculated surplus sits at the upper end of scenarios outlined by the IW in a 2025 preliminary study. At that time, the institute had estimated €15.5 billion in the middle scenario and €26 billion in the most favorable case for each cohort.