# Saxony-Anhalt

> Saxony-Anhalt is a central-eastern state with affordable property prices and growing logistics sector.

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

Saxony-Anhalt has about 2.1 million residents (end of 2025). The property transfer tax is 5.0%; only Bavaria charges less. Live figures for the state's prices, rents and gross yield are shown at the top of this page.

- Transfer Tax: 5.0%
- Capital: Magdeburg
- Population: 2,1 million
- Area: 20.452 km²
- Transfer tax of 5.0%; only Bavaria charges less
- Growing logistics sector with about 93,600 people in transport and logistics jobs
- Magdeburg and Halle (Saale) are university towns
- About 2.1 million residents (end of 2025)

## Real Estate Market

Magdeburg and Halle (Saale) are university cities, and Halle lies close to Leipzig with an S-Bahn connection. Transport and logistics are a large employer: about 93,600 people work in transport and logistics jobs, just over 10,200 more than ten years earlier. With every purchase, the exact location matters.

- Halle is home to Martin Luther University Halle-Wittenberg and linked to Leipzig by S-Bahn

## Transfer Tax Details

Saxony-Anhalt charges a Grunderwerbsteuer of 5.0%. Only Bavaria is lower at 3.5%; Baden-Württemberg, Lower Saxony, Rhineland-Palatinate and Thuringia also charge 5.0%. On a purchase price of 120,000 euros the tax is 6,000 euros. Notary and land registry fees add about 1 to 1.5% of the price.

## Investment Cities

Demand is concentrated in Magdeburg and Halle and their universities.

- Magdeburg: the state capital, with Otto von Guericke University
- Halle (Saale): a university city near Leipzig, home to Martin Luther University
- Dessau-Roßlau: a Bauhaus city and seat of the German Environment Agency (UBA)
- Wernigerode: a tourist town in the Harz mountains with a historic old town; check the local rules before letting to holiday guests

## Practical Tips

- Price purchases in Magdeburg without a premium for new chip fabs until a new plant is actually approved; good access to the tram network is still a sensible criterion
- Halle's Paulusviertel is a Gründerzeit (late 19th century) district north of the city centre. Compare prices and rents there with the live figures above before you decide

## Frequently Asked Questions

### What is the property transfer tax in Saxony-Anhalt?

Saxony-Anhalt charges a Grunderwerbsteuer of 5.0% on real estate purchases. Only Bavaria charges less, at 3.5%.

### What does Intel's cancellation mean for Magdeburg's property market?

In July 2025 Intel decided not to build the planned chip fab near Magdeburg. Price purchases in Magdeburg without a premium for a new plant, and only buy if the numbers work with today's rents.

### Is Saxony-Anhalt too risky for property investment?

If you invest here, focus on well-connected locations in Magdeburg and Halle and avoid areas with persistent vacancy. Before you buy, check the population trend and the vacancy in the specific district. The current prices and rents above show whether a property pays off.