How to Not Pay German Taxes for Free Software Development Funded by the European Commission

I'll soon start my second project supported by NLnet and the European Commission. For the first one I spent way too much time figuring out if I need to pay taxes on the funding I receive. At least value added tax does not apply! However, German tax law is not clear about income tax from what I can tell, and even writing a petition to the federal ministry of finance to clear things up still leaves me with most of the uncertainty. In any case, I did not need to pay income tax on the funding the first time around. Who knows if it will stay this way?

If you might find yourself in a similar situation one day, I strongly recommend to save yourself many hours of headaches and read my German blog post about this. Here it is: https://wordsmith.social/felixernst/wie-man-keine-steuern-auf-europaisch-geforderte-softwareprojekte-bezahlt

I don't want to translate German legalese into English.

If you can't read German, that's a bit of a cliffhanger now, isn't it? Well, sorry about that. However, you might want to cherish the fact that you probably don't need to deal with German tax law! Also consider that it is probably better for your sanity anyway if you don't spend your time learning about taxation in other countries. It's not a good conversation starter, trust me.