Since the game is built on different levels of civilizations (pioneer, settler, citizen, merchant, aristocrat), each successive civilization level requires more goods and more balancing of skills and finesse. It begins with the creation of cheap goods, and progresses in civilization levels throughout the game leading to more advanced goods. The economy in Anno 1503 is built on providing different goods to colonist citizens. Each different player, human or computer, is represented by a color. The AI also has adjustable personalities, which the player customizes before the beginning of a game. As in Anno 1602, the AI is progressive, meaning that it advances along with the human player. The game is constructed around one human player and three computer AI players.

Eventually, citizens become Aristocrats, and require at least ten different goods and numerous services, such as access to a large church or a bathhouse.

Resources begin as food and cloth, but progress into more complicated and different goods. After finding a suitable site, city-building begins. Anno 1503 begins with the player in control of a ship filled with men and material searching for an island to settle.

Anno 1503 city layout