# Saarland

> Saarland is Germany's smallest state by area (excluding city-states), located on the French border.

Canonical: https://www.investbud.de/en/states/saarland
Last updated: 2026-10-28

Saarland is Germany's smallest territorial state, with about 1 million residents (end of 2025), and borders France and Luxembourg. The property transfer tax is 6.5%, the joint highest rate in Germany. Coal and steel shaped the state. Live figures for Saarland's prices, rents and gross yield are shown at the top of this page.

- Transfer Tax: 6.5%
- Capital: Saarbrücken
- Population: 1,0 million
- Area: 2.570 km²
- Cross-border commuters: from France into Saarland, from Saarland to Luxembourg
- Transfer tax of 6.5%, joint highest rate in Germany
- Saarland University in Saarbrücken with about 16,000 students
- Coal and steel heritage

## Real Estate Market

Saarland's property market reflects a small economy that long depended on coal and steel. Saarbrücken is the state capital, with Saarland University (about 16,000 students in winter semester 2025/26) and the state government. The border shapes the labour market: about 14,000 employees commute from France into Saarland (2022), and the number of Saarland residents working in Luxembourg is rising.

- Saarbrücken: the state capital, with the university and the state government
- Towns near Luxembourg such as Perl are home to commuters who work in Luxembourg

## Transfer Tax Details

Saarland charges a Grunderwerbsteuer of 6.5%. Together with Brandenburg, North Rhine-Westphalia and Schleswig-Holstein, that is the highest rate in Germany. On a purchase price of 150,000 euros the tax is 9,750 euros. Notary and land registry fees add about 1 to 1.5% of the price. Include these costs in your yield before you compare prices with other states.

## Investment Cities

Demand is concentrated in Saarbrücken and in towns near the Luxembourg border.

- Saarbrücken: the state capital, with the university, state government offices and cultural institutions
- Merzig and Perl: in the Merzig-Wadern district, which borders Luxembourg; Perl sits right on the border
- Homburg: home to Saarland University Hospital
- Völklingen: home to the Völklinger Hütte ironworks, a UNESCO World Heritage site

## Practical Tips

- In Saarbrücken, locations near the university and the city centre are within easy reach for students and employees
- Commuters on Luxembourg salaries live in the border towns near Luxembourg. Check local asking rents before you plan for a rent premium

## Frequently Asked Questions

### What is the property transfer tax in Saarland?

Saarland charges a Grunderwerbsteuer of 6.5%, the highest rate in Germany, tied with Brandenburg, North Rhine-Westphalia and Schleswig-Holstein.

### Is Saarland a good market for affordable property investment?

How much capital you need depends on the current prices shown above. Also weigh the 6.5% transfer tax and notary and land registry fees of about 1 to 1.5% of the price. Run the numbers for each property with all purchase costs and the rent you can actually achieve.

### How does the Luxembourg border affect property demand?

More and more people from Saarland work in Luxembourg. Towns near the border such as Perl and Merzig are within easy reach for them. Whether rents and prices there are above the state average is best checked against current local listings.