A glass dome sits on top of the Reichstag building, which houses the Bundestag federal parliament, as a German national flag flies in Berlin, Germany, on Sunday, Nov. 13, 2016. Chancellor Angela Merkel gave ground to her coalition partner and agreed to support Foreign Minister Frank-Walter Steinmeier as the next German president, laying the ground for a resumption of the two parties' alliance after next year's federal election. By Ludwig Burger
The arrests follow arson attacks on a community centre and a refugee shelter.
Federal prosecutors said in a statement the five were male culpable minors who formed a group which styled itself as the "last wave of defence" to protect the "German nation".
They listed eight German members of the group, disclosing their first names and the initial of their last names, including three who had been previously arrested. Their ages were not disclosed.
The group's "aim is to commit acts of violence primarily against migrants and political opponents to bring about the collapse of the democratic system of Germany," the statement said.
Two of the five are believed to have committed arson at a cultural community centre in October in the eastern state of Brandenburg.
Two other members of the group who were arrested previously are accused of breaking a window and firing fireworks into a migrant shelter in Saxony in January.
The statement added that more than 220 police officers were involved in the five arrests and searches of premises across five regional states.
Politically motivated crimes in Germany surged about 40% to a record high last year, a report by the interior ministry showed on Tuesday, with an especially sharp growth seen in far-right violence.
Deepening political polarisation, a series of closely fought elections and the war in Gaza were cited as underlying reasons for the growth in violence.
Far-right party Alternative for Germany (AfD) scored its best-ever results in national elections in February, calling for tighter immigration controls and a departure from the European Union.
(Reporting by Ludwig Burger; Editing by Edwina Gibbs)