In Germany, selling Ethereum tax-free depends on holding the asset for over one year, 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 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. Additionally, sales 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. Proposed law changes may remove the one-year holding period after December 31, 2026, but current rules still apply. Investors should carefully track purchase dates, wallet holdings, and gains to optimize tax outcomes when selling Ethereum in Germany.
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