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HEALTH

Why are medicines in Germany only available in pharmacies?

Over the counter medicines like paracetamol are not usually available to buy in German drugstores or supermarkets. We spoke to an expert to find out why there are strict rules on the sale of some medical products - and why they seem pricier than other countries.

View of a shelf with medicines against coughs and colds in a pharmacy.
View of a shelf with medicines against coughs and colds in a pharmacy. Photo: picture alliance/dpa | Friso Gentsch

If you’ve ever found yourself scanning the aisles of drugstores like DM or Rossmann wondering where to find the ibuprofen, paracetamol or cough mixture, you will be disappointed – they can generally only be bought in pharmacies in Germany. 

It can be a big culture shock to foreigners who are used to picking up some medicines while doing their weekly shop at the supermarket or while buying shampoo at the drugstore. 

So why are these over-the-counter medicines only sold in the Apotheke?

We got in touch with the Federal Association of German Pharmacist Associations (ABDA) to find out more.

Christian Splett, a spokesman for the association explained that – with very few exceptions – only pharmacies can sell over-the-counter (OTC) or non-prescription drugs in Germany. He said this is enshrined in German law, and is based on a couple of important principles.

Firstly, there is an emphasis on consumer protection.

“In Germany, we have a high standard of consumer protection which emphasises prevention rather than compensation,” said Splett. “We wouldn’t want someone to go and buy a pack of pain killers from a petrol station and then get seriously unwell.

“Healthcare is not like any other business. We have a serious responsibility for people’s health.”

Linked to this is the principle that taking medication is not something to be taken lightly.

A man taking a paracetamol tablet. Photo: picture alliance/dpa | Lino Mirgeler

“In Germany, it’s seen as really important that the use of medicinal drugs isn’t trivialised,” Splett said. “This is strengthened both by cultural attitudes and by the law.”

Since 2004, it has also been possible to buy medications from online pharmacies, from medicine providers such as DocMorris and Shop-Apotheke, which are sometimes cheaper than the high street pharmacies. 

These mail-order pharmacies are fully-fledged on-site pharmacies with a mail-order permit under the German Pharmacy Act.

Who decides on the prices of medicines?

On the question of why prices of medications such as cough medicine and standard pain killers seem to be higher in German pharmacies than in other European countries, the answer may lie in the fact that German pharmacies have complete freedom to set their own prices. 

READ ALSO: EXPLAINED: How Germany will roll out e-prescriptions this year

“Despite strict regulations and moral obligations, pharmacists still have to act like other business owners, for instance, they set their prices for over-the-counter drugs with regard to the competition,” Splett explained.

According to the website of the Federal Association of German Pharmacist Associations e.V., the prices for individual drugs or for an entire product range can involve calculations based on various business and competitive factors.

For example, the purchasing conditions of a product may vary depending on the manufacturer, wholesaler, order quantity or season. Pharmacies also have to factor in the costs that they incur themselves, such as for personnel or other material costs.

The competitive situation, which is determined by the range and prices of neighbouring pharmacies, can also influence a pharmacy’s price calculation.

Meanwhile, there’s also the 19 percent value added tax (VAT), which also makes the price higher. 

Member comments

  1. What amazes me is the over the top price of Nicotine Replacement Therapy (NRT) drugs in Germany. If the government was really honestly interested helping people stop (or at least drastically reduce) their dependence on tobacco products they would keep the prices down below the equivalent price of cigarettes. You can buy the same Nicotine replacement drugs in the UK for less than HALF the price in Germany. Absolute madness

  2. What a load of German bollocks! The pharmacies are an oligopoly and have no real competition. This is just one of many areas of German protectionism that really irritates me, a couple of the others being the Notaires and the chimney guys!

  3. AND it keeps the many pharmacies in business which is the likely the main reason. I don’ remember reading too many aspirin overdose stories in the news while living in other countries.

  4. I cannot recall ever being provided with medical advice when asking for a packet of Ibuprofen or Paracetamol in an Apotheke. I was passed the item in the same way a Supermarket or Garage Employee in the UK did. I don’t buy that the interest of the consumer’s health is the reason items are only available in Pharmacies. If a UK Supermarket can sell an own brand paracetamol for less than a pound this gives you an indication of the profits to be made. In my personal opinion I believe profit and competition is the main driver.

  5. Out one hole:
    “In Germany, we have a high standard of consumer protection which emphasises prevention rather than compensation,” said Splett.
    Out the other end:
    On the question of why prices of medications such as cough medicine and standard pain killers seem to be higher in German pharmacies than in other European countries, the answer may lie in the fact that German pharmacies have complete freedom to set their own prices.

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For members

READER QUESTIONS

EXPLAINED: Do I have to declare income from foreign sources on my German tax return?

If you're a resident in Germany, you will typically have to declare and pay tax on your worldwide income. But there may be some exceptions in certain cases.

EXPLAINED: Do I have to declare income from foreign sources on my German tax return?

If you’re filling in a German tax return, you are generally legally required to declare and pay tax on all income you earn – wherever in the world you earn it. This is true even if you keep the money abroad.

In most cases, your worldwide income is subject to what’s called “unlimited tax liability” – which means that there’s no exemptions or discounts on your taxes for money earned abroad – whether its from work or capital gains like the sale of stocks. This is generally even true if Germany doesn’t have a Double Taxation Agreement (DTA) with the other country in question.

If, however, Germany does have a DTA – some of your tax might end up getting limited in Germany. This is generally providing that you’ve paid it in the other country.

For example, the US may apply a withholding tax to payments made to you for freelance services you provide in the US, for example. In this case, the DTA between Germany and the US would allow you to submit documentation proving that you’ve already paid tax on this payment in the US. That’ll prevent you from having to pay tax again in Germany on the amount that actually gets wired to your account.

READER QUESTION: How can I find a German tax advisor?

Who has a double taxation treaty with Germany?

Germany has concluded double taxation agreements with numerous – but not all – countries and territories. You can check out the German government’s dropdown menu here to see which countries are on the list.

German residents earning money in other EU countries should still check this list, as certain tax provisions may be unique to the two countries in question.

READ ALSO: Everything you need to know about paying taxes in Germany

What about rental income?

As a general rule, rental income is taxed in the country where the property is located, meaning you don’t have to declare or pay it in Germany. There are some notable exceptions – for example if the property is located in Spain. In this case, you would report this income in Germany.

What about inheritance?

Some double taxation agreements have clauses that specifically govern what tax rules there are around inheritance that a German resident might get from abroad.

In general, the inheritor will still have to pay inheritance tax in Germany, but could see their tax liability reduced if tax already has to be paid abroad.

There are also other exceptions possible, such as if a child receives a property in their parent’s will and then proceeds to live in it for at least 10 years after they acquire it. In this case, they may not need to pay any tax on it.

In certain complicated cases – or if you have any doubt – it may be a good idea to seek out the services of a professional tax advisor who can make sure you don’t get in trouble with the Finanzamt (tax office). 

READ ALSO: Do foreigners owe tax in Germany on money that is inherited from overseas?

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