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I just put my Calibre library in Dropbox and get apps like Calibre Sync for Android. It integrates with Dropbox, downloads the library metadata on demand, and lets you download the books you are actually reading.

I combine this with sorting by recently modified/custom Calibre columns for managing what is Todo or various 'shelves'. It lets you make a custom 'tag' column.

Does this also let you sync annotations? My gut feeling is no but you seem smarter than me.

There's cheap VPS hosts, but the problem is that they all go away after a year and pop up with a new name after that.

Maybe the 3.50$ instance would do the job: https://aws.amazon.com/lightsail/pricing/

Calibre Web, running on a Raspberry Pi. It comes with login, you can use Github to login too. Expose it via your router (put Nginx+LE in front) or cloudflared.