Germany's Ethereum Tax Rules: Holding Periods Matter

In Germany, Ethereum sales are subject to tax laws that depend on how long an investor holds the asset. According to section 23 of the Income Tax Act, gains from sales within one year are taxable at personal income tax rates, while those held longer than a year are exempt regardless of profit size.

The recent price surge on September 11, 2026, highlights the importance of the purchase date over price highs for tax purposes. This means that investors should carefully track their purchase dates and wallet holdings to optimize tax outcomes.

Sales in Germany include swaps and payments with Ether, and a 1,000 euro annual exemption applies to gains. Tax rules also specify that the order of selling units follows a wallet-based FIFO or average method, affecting which holdings are taxed.