In the last dossier, we talked about the living wage and basic financial arrangements. But what else will life look like in the territory of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania?
What ancillary costs are incurred and/or will there even be ancillary costs in everyday life going forward?
We will see a transitional period in this case as well. Many of the contracts concluded under the old system will remain in place during this time and will then be gradually rewritten.
There will be a cut-off date during the transition period. However, the exact date remains to be set. All individual obligations and payments (e.g. TV license, insurance, etc.) must be honoured until this date.
Purchases when foreign nationals enter the country
VAT will not be charged on items offered for sale to consumers living in domestic territories. This means that all prices are gross prices.
If a person from another territory wishes to enter the country and make a purchase, they will be obliged to pay 25% VAT on the price of the selected goods.
After the visitor returns to their territory, they can present the receipts issued at the time of their purchase and obtain a refund on the difference between the current VAT rate in their own territory and the 25% VAT rate applicable in the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania.
Example:
A person from Magedurg buys goods in the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania.
Price: EUR 100.00 net, plus 25% VAT = EUR 125.00 gross
The person returns to Magdeburg.
The applicable rate of VAT there is 16%.
The difference of 9%, in this case EUR 9.00, will be paid out after presentation of the receipts.
Purchases when travelling abroad
Citizens from the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania who travel abroad on business and purchase goods there are required to pay the VAT applicable in the specific country.
On entering the territory of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania, the full amount of VAT paid abroad will be offset and refunded on presentation of receipts.
Example:
A local citizen travels to Berlin and buys goods worth EUR 116.00 including 16% VAT.
After presenting the receipts at the border, they will receive a reimbursement of EUR 16.00 upon their return to the territory of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania.
Passenger cars
Citizens will have the option of renting a new car for a monthly fee every 4 years.
This is voluntary. No one is obliged to accept this offer.
The average monthly hire charge will be around EUR 200.00*, depending on the vehicle category.
All car insurance policies are covered by the 25% tax levy.
(* conversion from schilling to euro depends on the respective inflationary development of the euro in the system)
Fuel costs
The price per litre of petrol will equate to around 50 cents.
The price per litre of diesel will equate to around 25 cents.
Parking spaces/parking offences
All car parks in the territory of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania will be available to the public free of charge.
A fine of 2 schillings (equivalent to approx. EUR 1,000.00) and an additional driving ban of up to 1 week will be imposed for:
• Blocking and obstructing disabled parking spaces
• Obstructing or blocking access to healthcare facilities and fire service access routes
• Parking in the second row
Local public transport
Residents of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania will be able to use all public transport free of charge. The costs of this are covered by the 25% levy and are therefore borne by the Grand Duchy.
Foreign day trippers and holidaymakers etc. who wish to use public transport will be able to purchase a day ticket worth the equivalent of around EUR 10.00 gross.
School fees
School fees are also paid by the Grand Duchies to ensure universal availability of education. There will be no public schools.
School types in the territory of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania:
• Free schools
• Special schools
• Schools for gifted students
• Universities (e.g. in Rostock)
• Adult education centres
Rent and utility costs
Residents:
The maximum rent/rental price is approx. 4.90 EUR* per square metre, plus utility costs.
The approx. EUR 4.90 per square metre is the upper limit per square metre of living space in the entire territory of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania.
If a currently rented property is made available for rent to a local resident by a non-resident landlord, the non-resident landlord concerned will be contacted.
They will then have the opportunity to move their main residence to the territory of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania in order to rent their apartment to locals as a local resident for a maximum of approx. 4.90 EUR*/sqm.
Should the current non-resident landlord decline to do so, the building, apartment or commercial space in question will be transferred to the ownership of the Grand Duke Friedrich Maik area without compensation.
Business owners:
Commercial tenants must negotiate their rent with the local landlord themselves. The Grand Duchy does not set any requirements or upper limits in this regard.
(* conversion from schilling to euro depends on the respective inflationary development of the euro in the system)
Gas and electricity costs
As soon as free energy is available to us, all electricity consumption will be free of charge, but is billed to each household at a flat rate of around EUR 300.00* per year.
Electricity charge
Meter charges will be cancelled. The use of electricity meters will be free of charge.
The following electricity prices will apply until free energy is available:
A kilowatt hour will cost the equivalent of approx. 21 cents*.
Gas charge
Meter charges will be cancelled. The use of gas meters will be free of charge.
A kilowatt hour will cost the equivalent of approx. 6 cents*.
Individual gas and electricity costs will be invoiced as gross amounts to non-resident visitors who, for example, are working in the territory of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania and have rented an apartment for this purpose.
(* conversion from schilling to euro depends on the respective inflationary development of the euro in the system)
Water and waste water costs
Water and waste water consumption will be free up to approx. 125 cubic metres.
Additional consumption over and above the maximum limit will cost the equivalent of approx. EUR 7.00 */cubic metre.
Individual water and waste water costs will be charged as gross amounts to non-resident visitors who, for example, are working in the territory of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania and have rented an apartment for this purpose.
(* conversion from schilling to euro depends on the respective inflationary development of the euro in the system)
Telephone charge
Internet and telephone use will be free of charge.
Mobile phone charges will remain place during the transition, depending on the specific provider and the individual contract.
Current contracts will be gradually converted during the transition.
Final word
This dossier is intended to give you some brief insight into the cost of living in the territory of the Grand Duchies of Mecklenburg-Strelitz, Mecklenburg-Schwerin and the Duchy of Pomerania.
All information is subject to change and should only be seen as a guide.
If you pass on and share the information in whole or in part, please bear in mind that you must also cite the source as ‘Grand Ducal Dossier 004/2024’.
Learn more about the separation of powers in the Grand Duchy.
