Ethereum Price Jump Triggers Tax Fears for German Investors

The recent price jump of Ethereum on September 11, 2026, has left many investors wondering whether to take profits or wait out the holding period. In Germany, the decision depends not on the current price but on when the asset was purchased.

According to section 23 of the German Income Tax Act, gains from the sale of crypto assets are tax-free if they have been held for more than a year. This means that investors who bought Ethereum before September 2025 can sell their holdings without incurring taxes on the gain.

However, the tax treatment changes when the holding period is less than a year. In this case, the gain counts towards taxable income and is charged at the investor's personal tax rate.

The exemption limit for taxable sales within the one-year period is 1,000 euros. If the total gain from private disposal transactions in the calendar year exceeds this threshold, the entire amount becomes taxable.