I built this browser extension many years ago and I got an offer for it. I’m planning to sell it for \~20k using the [escrow.com](https://escrow.com).
What legal concerns should I have when transferring the money to my German bank account?
How can I declare and pay the taxes? How much taxes I should expect to pay?
Context: I’m an employee in a company, and this transaction has nothing to do with my regular job. I don’t have a company in Germany.
by Weird_Exam852
2 comments
I assume you’re a German resident, right?
In principle then, this is taxable here whether the money ever touches Germany or not. German residents pay tax on worldwide income. If you’ve been making money from this aside from the sale, you also should have been paying tax on that and you should have had a properly registered business. Since it sounds like you haven’t done any of that, it’s likely worth consulting a lawyer here pre-sale to get all your ducks in a row.
>How can I declare and pay the taxes?
Through your normal tax return. Sales with a profit of more than 600€ per year are considered income and therefore subject to income tax. Afaik you will have to declare it under “sonstige Einkünfte”. But if you want to be extra sure talk to a tax attorney.
>How much taxes I should expect to pay?
Your personal income tax rate, same as for your normal job.