Best SIM card and phone plan in Germany for expats: prepaid vs contract, providers compared
You need a German phone number within days of arriving — banks need it for 2FA, employers need it for onboarding, and apps need it for verification. This guide compares prepaid and contract options for expats, covers what you can get without SCHUFA or a German bank account, and explains why a phone Vertrag (contract) is the second step to building German credit history.
Reviewed: 2025-11•Read time: 6 min read•Best for: New arrivals in Germany who need a working phone number and data plan fast, especially without yet having a German bank account or SCHUFA history
Written & reviewed by the Starting in Germany team, checked against official German government sources.
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Why a German phone number matters more than you expect
A German mobile number is not just a convenience — it is a practical requirement for getting set up in Germany:
Banking 2FA: German banks (N26, DKB, ING, Sparkasse) require a mobile number for two-factor authentication when setting up an account or approving transactions
Employer onboarding: HR systems and company apps usually require a mobile number on day one
Landlord and flat viewings: responding to listings and confirming Besichtigungen (viewings) happens over WhatsApp and SMS
Government portals: some Finanzamt and Rentenversicherung online portals require mobile number verification
Parcels and delivery: DHL, DPD, Hermes all send delivery notifications and time-slot selections via SMS
App verification: most German apps (banking, insurance, ride-sharing) require SMS verification
The practical order: Get a prepaid SIM in the first day or two. Once you have a German bank account, consider upgrading to a contract plan for SCHUFA-building purposes.
Prepaid vs contract: which makes sense when
Prepaid (Prepaid / Guthaben)
Contract (Vertrag / Laufzeit)
SCHUFA check
None required
Yes — requires positive SCHUFA or income proof
Bank account needed
No — can top up with cash or card
Usually yes (SEPA direct debit)
Commitment
None — top up as you go
12 or 24 months minimum (usually)
Cost
Slightly higher per GB
Lower price per GB for equivalent data
SCHUFA benefit
None
Yes — shows up as a positive entry
When to choose
First arrival, no documents yet
Once you have Anmeldung + German bank account
Recommendation for new arrivals: Get a prepaid SIM within the first 1–2 days. Once you have your Anmeldung done and a German bank account open (typically week 2–4), switch to a contract plan — both for better data pricing and SCHUFA history.
Best prepaid SIM cards in Germany for new arrivals
German prepaid SIMs can be bought at supermarkets, electronics stores, and petrol stations. You will need to verify your identity (Ausweis-Pflicht) — either online with your passport (VideoIdent) or in-store with your original passport.
ALDI Talk (uses Telefónica/O2 network)
€7.99/month for 10 GB, or pay-per-use
Wide availability — sold at every ALDI supermarket
Cheap and reliable for everyday use; coverage slightly weaker than Telekom outside cities
Verified in-store or via VideoIdent app
Lidl Connect (uses Telefónica/O2 network)
Similar pricing and availability to ALDI Talk
€4.99/month entry plans; €7.99 for reasonable data
Congstar (uses Telekom network — best rural coverage)
Telekom network = best coverage across Germany including rural areas and the train network
More expensive: ~€10–12/month for a comparable data allowance
Online purchase; verification via VideoIdent
REWE Mobil / Netto Mobil (various networks)
Budget prepaid options; sold at supermarket chains; minimal English support
Vodafone prepaid
Slightly more expensive than O2 network options
Decent city coverage; sold at Vodafone stores and electronics retailers
Practical tip: For the absolute fastest option on day one, walk into a Saturn, MediaMarkt, or Telekom store — staff can activate a SIM and verify your passport in person without needing a German bank account.
Contract plans: when to get one and what to expect
Requirements for a contract plan (Vertrag):
German Anmeldung address (billing address)
German bank account (SEPA direct debit) — most providers require this
SCHUFA check — providers check your credit; if no SCHUFA history, some will still approve, others will decline. If declined, try a different provider or use the no-SCHUFA workarounds below.
Major providers and networks:
Provider
Network
Notes
Telekom (T-Mobile)
Own (best coverage)
Most expensive; best for travel across Germany, rural areas, trains
Vodafone
Own (good urban)
Slightly cheaper than Telekom; good in cities
O2 (Telefónica)
Own (good urban)
Cheapest of the three major networks
1&1
O2 + own 5G
Competitive prices; building own network
Budget providers on the same networks (often significantly cheaper):
Provider
Network
Good for
Aldi Talk / Congstar
O2 / Telekom
Prepaid and monthly tariffs
freenet
Vodafone/O2
Simple monthly contracts
Mobilcom-Debitel
All networks
Wide plan choice
Blau.de
O2
Budget contracts; some English support
Typical contract price range (2025):
10–20 GB: €10–20/month
30–50 GB: €15–25/month
Unlimited: €25–40/month
No-SCHUFA contract options:
Some providers (Blau.de, yourfone) offer contracts with a SCHUFA-neutral check — they query your history without creating a hard inquiry
Alternatively, try smaller providers or MVNOs (mobile virtual network operators) who often approve without SCHUFA history if you show proof of employment
Phone Vertrag and SCHUFA: the second step to building credit history
When you sign a phone contract (Vertrag) in Germany, the provider registers it with SCHUFA. If you pay on time, this appears as a positive entry on your credit file.
The recommended SCHUFA-building sequence:
Open a German bank account (day 1–14) — first positive SCHUFA entry
Sign a phone Vertrag (week 2–4 after Anmeldung) — second positive entry
Get a DKB credit card (free, available after ~3 months with DKB account) — third entry
After 2–3 months of this sequence, you have enough positive SCHUFA history to be credible to landlords requesting a BonitätsAuskunft. Paying the phone bill on time is the only requirement — even a basic €10/month plan works.
Important: Only contracts (Verträge) build SCHUFA — prepaid cards do not register with SCHUFA and contribute nothing to your credit file.
eSIM options for Germany
If your phone supports eSIM, several German providers offer instant eSIM activation — no physical card, no in-store visit.
eSIM providers in Germany:
Telekom — eSIM available online or in-store; their network gives the best coverage
O2 — eSIM online activation
Congstar — eSIM; Telekom network; good value
1&1 — eSIM available
For arriving expats: If you need a German number on arrival day and your phone supports eSIM, Congstar or Telekom prepaid eSIM can be activated online before you even land — you'll need to complete VideoIdent (video ID verification) which takes 10–15 minutes.
Note: most eSIM options still require a German address eventually for billing — fine if you use a hotel address initially and update later, but some providers check this at sign-up. Read the small print.
A SIM card is one of the first things you need after arriving — but Anmeldung, health insurance, and bank account all interact with your first-week timeline. Get your personalised order.
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