State funding Central Germany

SAB · IB Saxony-Anhalt · TAB

Three state development banks for central Germany — Saxony, Saxony-Anhalt, Thuringia. For Leipzig, Dresden, Halle, Magdeburg, Erfurt and Jena. Combinable with KfW and listed-building depreciation.

Three development banks for central Germany

Saxony

SAB Saxon Development Bank

Housing funding Saxony, modernisation, rental new-build. Especially relevant for Leipzig and Dresden with their large listed stock.

Saxony-Anhalt

IB Saxony-Anhalt

Investment Bank of Saxony-Anhalt: housing funding, modernisation. Halle and Magdeburg offer low purchase prices with an attractive assessment base.

Thuringia

TAB Thuringian Development Bank

Housing funding Thuringia, modernisation. Erfurt, Jena, Weimar — university cities with stable rental demand and listed stock.

Central Germany specifics

Transfer tax: Saxony 5.5%, Saxony-Anhalt 5.0%, Thuringia 6.5%. For investors, Saxony-Anhalt is particularly attractive with the lowest ancillary costs.

Leipzig: the largest listed-building market in Germany. Period stock with refurbishment shares of 60–80%, combinable with the SAB Saxon Development Bank and KfW 261. Stable rental demand from the university, colleges and culture.

Dresden: premium locations such as Blasewitz, Striesen, Loschwitz with high-quality period buildings. QNG new-build projects in Friedrichstadt and Pieschen too.

Halle: low purchase prices (often €1,500–2,500/m²), an attractive assessment base for listed-building depreciation at moderate risk. Stable university demand.

Erfurt, Jena: both university cities. Jena as a tech hub with above-average rental purchasing power. Erfurt with a particularly dense listed stock.

Combination options

  • Leipzig listed: listed-building depreciation §7i + SAB modernisation + KfW 261 — up to three funding components combinable
  • Halle/Magdeburg listed: low purchase prices + listed-building depreciation + IB Saxony-Anhalt — an attractive return on equity
  • Erfurt listed: listed-building depreciation + TAB + KfW 261 — works well in student cities too
  • Dresden QNG new build: KfW 297/298 + new-build special depreciation §7b — a modern investment in a stable region
FAQ

Frequently asked questions

Why is Leipzig so attractive for listed-building depreciation?
Leipzig has the largest preserved period stock in Germany. Refurbishment shares of 60–80% are common — for refurbishment properties, listed-building depreciation + KfW 261 + SAB funding makes a very attractive tax structure. Add stable rental demand from the university, colleges and rising economic strength.
Can I combine SAB, IB Saxony-Anhalt or TAB with KfW?
Yes — all three state development banks have programmes that can be combined with KfW 261 (refurbishment) and KfW 297/298 (new build). The application sequence is decisive — I coordinate it.
Are existing properties in Halle a good investment?
With the right structuring: yes. Low purchase prices make the leverage large, listed-building depreciation reduces the tax burden. Rental demand is stable from the university and administration. Risks: vacancy rates vary regionally, and a good location is decisive.

Check the funding for your project

I check state funding, the KfW combination and the right bank for your property — free, non-binding, in German and Russian.