Germany’s largest cities are shelling out hundreds of millions of euros on housing thousands of refugees in hotels, as local authorities struggle to cope with a lack of social housing and emergency shelters. Despite a decline in the overall number of asylum applications, the inflow of Ukrainian refugees entitled to initial accommodation has left city administrations with little choice but to turn to the private sector.
According to Bild, Germany’s ten largest cities—plus Essen, Dresden, Potsdam, Hanover, Chemnitz, and Rostock—reported that 11,809 refugees were living in hotels and guesthouses at the end of June. The cost in the first half of 2025 alone amounted to more than €193 million.
Hamburg, one of the hardest-hit cities, accommodated 5,303 people across 55 facilities, including a four-star hotel. With the local welfare department paying €83 per person per night (covering board, lodging, and security), the city spent €86.2 million between January and June. Berlin followed with around 3,340 refugees, costing nearly €37 million in six months. Cologne reported €12.3 million for 1,307 people; Düsseldorf €5.5 million for 758; Frankfurt €2.8 million for 622. Munich spent €4.9 million, Hanover €527,000, and Leipzig housed 120 in former hotels.
Some municipalities—including Dortmund, Potsdam, Bremen, Chemnitz, Dresden, and Rostock—have resisted turning hotels into makeshift shelters. Others, such as Stuttgart and Essen, declined to provide figures.
On average, the numbers suggest that housing a refugee in Germany under the hotel model costs around €16,300 per person for six months, or €32,500 a year. Officials stress that such arrangements are temporary, but the scarcity of permanent accommodation means the practice will likely continue well into 2026.
Spain faces similar pressures, though estimates vary widely. A report from think tank NEOS suggested that immigration could cost the Spanish state €30 billion annually in benefits, services, and welfare provisions. This equates to about €6,000 per immigrant annually, assuming a population of five million foreign residents.
Other calculations paint a far starker picture: in 2023, the arrival of 57,000 illegal migrants was said to have cost around €3 billion, or more than €50,000 per person when all emergency services were included.
Spain’s regions are spending thousands of euros each month on the care of unaccompanied foreign minors (MENAs) as well, with figures revealing stark regional disparities.
In Andalusia, the annual cost per child reaches around €53,000, or €4,400 a month, while Catalonia set aside €115 million in 2024 to support 4,802 minors—an average of just over €4,000 per child each month.
The Canary Islands, a key entry point for illegal migration, have borne the heaviest burden. Hosting some 6,000 minors in 2024 cost the archipelago €311 million, amounting to more than €51,000 per child per year. Transfers of nearly 3,900 minors from the islands to other regions are expected to add more than €205 million annually to Spain’s national bill.
