Terrace Fees: Restaurateurs in Halle Pay Third-Highest Charges for Outdoor Seating in Saxony-Anhalt—After Wernigerode and Wittenberg
Saxony-Anhalt's terrace fees spark debate as costs vary wildly across cities
Just in time for the start of the outdoor dining season in May, the German Taxpayers Association (Bund der Steuerzahler) has published a comparison of so-called terrace fees across Saxony-Anhalt's cities with more than 20,000 residents. The findings are as varied as the umbrellas shading outdoor seating areas:
While some cities charge no separate fee for outdoor terraces, restaurateurs in Wernigerode face the steepest bill at €1,163 for a standard operation. The Taxpayers Association urges municipalities to exercise restraint in levying these fees—but ideally, it says, more cities should follow the lead of Merseburg, Sangerhausen, Köthen, Salzwedel, and Eisleben, which have abolished terrace fees entirely.
Many cities are desperately searching for ways to revitalize their downtowns, often allocating substantial funds in municipal budgets for this purpose. Waiving terrace fees would be a simple, effective, and relatively low-cost measure to support outdoor dining, argues Ralf Seibicke, the association's state chairman.
When restaurants set up tables and chairs on public land to serve guests, they typically must pay special-use fees to the municipality—commonly referred to as "terrace fees." For this comparison, the Taxpayers Association analyzed fee schedules from the special-use regulations of 24 cities with over 20,000 residents. The assessment is based on a model business with a 25 m² outdoor dining area operating during the five-month peak season (May–September) in a prime downtown location.
In cities that do charge terrace fees, the average cost for the peak season is €328. The model business fares best in Schönebeck (€52) and Zeitz (€56), followed by Dessau-Roßlau (€100), Bernburg and Naumburg (both €125), and Weißenfels (€128). In 13 cities, including the state capital Magdeburg (€184), fees remain below €251. Wernigerode tops the list with the highest charge at €1,163, partly due to a 2023 amendment to its special-use regulations. Beyond a general fee increase for using public spaces in the old town, restaurants on the central market square now pay both a standard fee and an additional surcharge for outdoor dining. Even before this change, Wernigerode led the ranking for the highest terrace fees. It is followed by Lutherstadt Wittenberg (€750) and Halle (Saale) (€700). Above-average fees are also levied in Quedlinburg (€625), Halberstadt (€500), and Stendal (€500).
A positive trend: One-fifth of the surveyed municipalities—Merseburg, Sangerhausen, Köthen, Salzwedel, and Lutherstadt Eisleben—already forgo terrace fees entirely. The Taxpayers Association would like to see this list grow significantly. The financial impact on municipal budgets would be minimal, as revenue from these fees typically accounts for less than 0.05% of total income. Eliminating the fees would also cut administrative costs associated with their collection.
Bottom line: A small sacrifice for local authorities, but a major boost for restaurateurs who help revitalize city centers every day.
Methodology of the comparison:
Due to variations in municipal bylaws, several assumptions had to be made to enable a meaningful comparison:
The BdSt model business operates a 25 m² outdoor terrace in a prime downtown public space during peak season (May–September; 153 days).
Dessau-Roßlau is the only city in this comparison that offers a flat annual rate. The resulting terrace fees apply in full to the model business, as the local regulations do not provide for alternative time-based options (e.g., monthly or daily charges).
Any administrative fees for permit applications were not factored into the analysis.
