Rates of severe mental disorders such as schizophrenia substantially increased among migrants to Western European countries, particularly when living in a neighbourhood in which they can receive little social support. We assessed rates of self-rated mental health problems as well as individual and neighbourhood factors such as income and joblessness. Furthermore, the evaluated intercultural openness of the mental health system in the inner city of Berlin. We found that beyond individual factors, neighbourhood poverty substantially contributes to increased rates of self-reported mental health problems in the inner city of Berlin. Mental health institutions are often not geared towards the needs of migrants, with a substantial number of hospitals, policlinics, general practices and consultation offices reporting a need for guidelines, education as well as financial support for translators.