GSG-9 federal police arrested men and women aged between 18 and 39, Spiegel Online reported.
The people detained in the small town of Freital outside Dresden on Tuesday are suspected of forming a far-right terrorist group, causing serious bodily harm and attempted murder, federal prosecutors said in a statement.
They may also have been involved in attacks on asylum seekers' accommodation in Freital and the Saxon capital using stones and fireworks.
Sources told Spiegel Online that officers had found Eastern European fireworks during searches of the suspects' homes – the same type that were being collected by a group named Old School Society last year for bomb-making in a plan to attack “asylum seekers and Salafists”.
Freital shot to public attention in summer and autumn 2015 when it became a hotspot of anti-refugee violence and protests.