How to Tax Your OnlyFans Income in Germany as a Creator

OnlyFans can be a lucrative income stream, yet when it comes to taxes in Germany, many creators face uncertainty: What are my obligations to the tax office (Finanzamt)? Do I need to pay trade tax (Gewerbesteuer)? What expenses are deductible? This guide provides a step-by-step explanation of what German tax regulations you need to consider and how to declare your OnlyFans income lawfully, ensuring you don't pay more tax than necessary. Learn about VAT (Umsatzsteuer), business registration (Gewerbeanmeldung), and deductible expenses for creators based in Germany.

Why You Are Taxable as an OnlyFans Creator

As soon as you generate income through OnlyFans, German authorities consider you to be engaged in entrepreneurial activity. Even if operated as a side venture, you are classified as a business owner (Gewerbetreibende(r)) or at least self-employed. This means you are generally liable for income tax (Einkommensteuer), potentially Value Added Tax (VAT / Umsatzsteuer), and possibly trade tax (Gewerbesteuer), depending on your earnings level. To avoid stress or substantial back payments, addressing your tax obligations early is crucial. Typically, registering a business (Gewerbeanmeldung) is necessary, and all income must be reported to the tax office (Finanzamt). This not only protects you from legal repercussions but also enables you to deduct numerous business-related expenses.

OnlyFans: Freelancing, Business, or Small Business?

Freelancing (Freiberufliche Tätigkeit): Only specific professions (e.g., artistic, consulting, journalistic) qualify as freelance under German law. If you regularly sell content with the intention of making a profit, you are more likely classified as operating a commercial business (Gewerbe).

Small Business Regulation (Kleinunternehmerregelung): If your revenue in the previous year was below €22,000 (and projected revenue for the current year is below €50,000), you can opt for the small business regulation. Under this scheme, you do not charge VAT on your invoices, but consequently, you cannot reclaim input VAT (Vorsteuer) on your expenses. It simplifies bureaucracy but is only advantageous up to a certain revenue threshold.

Sole Proprietorship or GmbH: The simplest legal structure for creators is typically a sole proprietorship (Einzelunternehmen), requiring no initial share capital and involving a straightforward registration process. However, if significant growth is anticipated or greater liability protection is desired, forming a limited liability company (GmbH) might be considered later. Always weigh potential liability issues against the increased administrative burden.

Which Taxes Apply & What Can You Deduct?

Income Tax (Einkommensteuer): You must declare your profit (income minus deductible expenses) in your annual income tax return. Especially with higher earnings, engaging a tax advisor (Steuerberater) can be beneficial for optimizing deductions and depreciation.

VAT (Value Added Tax / Umsatzsteuer): If you do not qualify for or opt out of the small business regulation, you are subject to VAT. This requires adding 19% VAT to your income (on services provided within Germany or to non-business customers in the EU) and remitting it to the tax office. The advantage is that you can reclaim input VAT paid on your business expenses (e.g., tech equipment, software subscriptions, marketing costs).

Trade Tax (Gewerbesteuer): If your annual profit exceeds the threshold of €24,500, trade tax may become applicable. However, a portion of the trade tax paid is typically credited against your income tax liability, often making the actual additional burden manageable for sole proprietors.

Deductible Expenses (Betriebsausgaben): Numerous business-related expenses can be claimed to reduce your taxable profit. Common examples include camera and lighting equipment, internet costs, home office expenses (if compliant with regulations), travel costs for shoots, and marketing expenditures. Meticulously keep all receipts and maintain a clear separation between personal and business finances.

How to Register Your Business and Stay Compliant

Your entrepreneurial journey typically starts with submitting the tax registration questionnaire (Fragebogen zur steuerlichen Erfassung) to your local tax office (Finanzamt). Following this, you must register your business (Gewerbe) at the local trade office (Gewerbeamt). You will then be assigned a tax number (Steuernummer) and, if applicable, a VAT identification number (Umsatzsteuer-Identifikationsnummer / USt-IdNr.). To maintain compliance and avoid issues with the tax authorities, keep the following in mind:

Maintain proper accounting records, either using the cash method (Einnahmen-Überschuss-Rechnung – EÜR) or double-entry bookkeeping, depending on your revenue and legal form.
Keep all invoices and receipts meticulously organized, whether digital or paper.
If you face uncertainties, consult a qualified tax advisor specializing in German tax law to avoid common pitfalls and optimize your tax position.

Conclusion: Being Well-Informed Leads to Success

The path to becoming a successful OnlyFans creator in Germany inevitably involves navigating the tax system. By correctly declaring your income and understanding your obligations, you minimize financial risks and can better focus on your core activities: creating high-quality content and building a strong fan community. With proper business registration, diligent bookkeeping, and potentially professional tax support, managing your tax liabilities becomes feasible, helping you avoid stressful back payments or penalties. Addressing these matters proactively ensures you can operate not only creatively but also in full tax compliance for long-term success.