Buy-to-let properties in Saxony: Cities, figures and rules 2026

Moe Afonso · 2026-10-13

Saxony is a state of contrasts for investors. On one hand, there are Leipzig and Dresden, two of the fastest-growing cities in Germany with high demand and low vacancy. On the other hand, there are regions like the Vogtland or the Ore Mountains (Erzgebirge), where every eighth apartment is vacant and the population is shrinking.

For investors, this means: Saxony is not a single market. The rules for rent, the prices and the risks differ extremely between the metropolises and the rest of the country.

We have compiled the official figures and show where the differences lie and which rules you need to know for your investment in Saxony.

01Saxony in figures

The key data for the state and the most important cities. All values with source and date.

Saxony has the second-highest vacancy rate of all federal states after Saxony-Anhalt. However, the 8.5% is a mixed value. While Leipzig and Dresden are below 5%, the value in Chemnitz is 11.0% and in Zwickau or Görlitz it is over 13%.

02The "Two Cities" market: Leipzig and Dresden

If you want to invest in Saxony, you will usually end up in Leipzig or Dresden. Both cities have successfully transformed themselves into modern locations for industry (automotive, microelectronics) and science.

In both cities, however, you have to follow the strictest rules in Saxony:

• Rent control: For a new tenancy, the rent may be a maximum of 10% above the local comparable rent (Mietspiegel).
• 15% Cap: In existing contracts, the rent may rise by a maximum of 15% in three years instead of 20%.

03The risk in the rest of the state

Outside the two metropolises, the market changes. Chemnitz, the third-largest city, will be the European Capital of Culture in 2025, but it still has a vacancy rate of 11%.

In these cities, purchase prices are very low. You can often buy a refurbished apartment for €1,000 to €1,500/sqm. Rechnungsrenditen (calculated yields) are often over 6 or 7%. But: This yield only exists on paper as long as the apartment is let. With a vacancy rate of 13%, the risk of having to let the apartment stand empty for months or even years is very high.

04Rules for landlords in Saxony

1. Real estate transfer tax (Grunderwerbsteuer)

Since 1 January 2023, Saxony has charged 5.5% real estate transfer tax. Before that, it was 3.5%. This has increased the incidental purchase costs. For a purchase price of €200,000, you have to pay €11,000 just for the tax.

2. Rent control and increase caps

Saxony is liberal. These rules only exist where the housing market is officially "tense":

• Dresden and Leipzig: Rent control (10% limit) and 15% cap.
• Rest of Saxony: No rent control (new rents are freely negotiable) and 20% cap.

3. Protection against dismissal (Kündigungsschutz)

In Dresden and Leipzig, there is an extended protection against dismissal of 7 years if a let apartment is converted into a condominium. In the rest of the state, the legal period of 3 years applies.

05Opportunities and risks in Saxony

06Read more

• Buy-to-let properties in Leipzig
• Buy-to-let properties in Dresden
• Real estate transfer tax in Saxony
• Step-by-step guide to buying property

07Sources

All sources accessed on 13/10/2026.

• Federal Statistical Office, Population in Saxony (as of 31/12/2025)
• Saxon State Ministry for Regional Development, 16th coordinated population projection for Saxony
• Statistische Ämter des Bundes und der Länder, 2022 Census, vacancy and rents
• Saxon Rent Limitation Ordinance (SächsMPrBegrVO)
• Saxon Cap Ordinance (SächsKappVO)

Note: This guide provides general information and does not replace legal or tax advice. All figures are example calculations with disclosed assumptions, status 13/10/2026.