# Mecklenburg-Western Pomerania > Mecklenburg-Western Pomerania is a northeastern state known for its Baltic Sea coastline and tourism. Canonical: https://www.investbud.de/en/states/mecklenburg-vorpommern Last updated: 2026-10-28 Mecklenburg-Western Pomerania, in northeastern Germany, has just under 1.6 million residents. Baltic Sea tourism shapes part of the property market: the state statistics office counted just over 33 million overnight stays in 2025. The property transfer tax rate is 6.0 %. Investors face two markets: vacation homes on the coast and rental apartments in cities such as Rostock and Schwerin. - Transfer Tax: 6.0% - Capital: Schwerin - Population: 1,6 million - Area: 23.212 km² - Just over 33 million overnight stays in 2025, 1.2 % more than the year before - Property transfer tax of 6.0 % since July 2019 - Rostock and Schwerin are the state's two largest cities - Vacation rentals on the coast and on Rügen and Usedom ## Real Estate Market The market splits into the coast, where vacation rentals drive demand, and the inland regions with conventional rental housing. The coast includes the islands of Rügen and Usedom and Baltic resorts such as Kühlungsborn. Far more people die in the state than are born: in 2025 there were 8,386 births against 23,908 deaths, and people moving in only partly made up for this. Rostock and Schwerin also lost a few residents in 2025. - Vacation properties on Rügen, Usedom and in Baltic resorts such as Kühlungsborn depend on the summer season - Rostock, with about 205,000 residents, is the state's largest city and has a university and a seaport ## Transfer Tax Details Mecklenburg-Western Pomerania has charged a Grunderwerbsteuer of 6.0 % since 1 July 2019; before that it was 5 %. The rate is above the average of the states, and only four states charge more, at 6.5 %. On a 150,000 euro property, it comes to 9,000 euros. Because the tax is based on the purchase price, a cheaper property can cost less in tax despite the higher rate than a more expensive one in a state with a lower rate. Compare the total acquisition costs. ## Investment Cities Coastal towns and cities suit different strategies: vacation rentals with seasonal income, or long-term letting. - Rostock: The state's largest city, with a university, a seaport and the Baltic resort of Warnemünde as one of its districts - Schwerin: The state capital on Lake Schwerin, with its palace on an island - Rügen and Usedom: Baltic holiday destinations with strongly seasonal demand - Greifswald and Stralsund: Hanseatic towns, Greifswald with a university and Stralsund with a university of applied sciences ## Practical Tips - Baltic coast vacation rentals earn most of their income in summer. Budget for vacancy in the winter months and check local rules such as the zoning plan and the second-home tax (Zweitwohnungsteuer) - Warnemünde is a district of Rostock and also a Baltic resort. Apartments there can be let long term or to holiday guests ## Frequently Asked Questions ### What is the property transfer tax in Mecklenburg-Western Pomerania? The Grunderwerbsteuer is 6.0 % of the purchase price and has applied since 1 July 2019. It is above the average of the states. Only Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein charge more, at 6.5 %. ### Is vacation rental a good strategy in Mecklenburg-Western Pomerania? On the Baltic coast it can pay off: the state counted just over 33 million overnight stays in 2025. Most guests come in summer, on islands such as Rügen and Usedom as well as in the seaside resorts. Expect strong seasonal swings and check the local rules for holiday apartments before you buy. ### What are the risks of investing in Mecklenburg-Western Pomerania? Far more people die in the state than are born, and people moving in only partly make up for this. Coastal vacation properties depend on the season. Check population trends and vacancy for each location, including in the cities.