I. Introduction
Influencers generating commercial income are increasingly attracting the attention of German tax investigators. In North Rhine-Westphalia (NRW), the State Office for Combating Financial Crime (LBF NRW) is currently reviewing 6,000 datasets from social media platforms. The estimated tax shortfall in NRW alone is approximately €300 million. The investigations primarily target professional influencers, including many based in Dubai, who have allegedly failed to declare substantial earnings. Hamburg and other German states are now intensifying their own efforts.
Ongoing investigations underscore the importance for influencers to carefully assess the tax implications of their activities. Those planning to relocate abroad should seek coordinated legal and tax advice at an early stage — not only to avoid potential criminal tax liability, but also to ensure lawful and tax-efficient structuring. Affected influencers are urged to take action, starting with a detailed review of their tax status — especially to determine whether Germany retains the right to tax despite a declared move abroad. Where taxes have indeed not been paid, voluntary self-disclosure may offer a pathway to immunity from prosecution.
II. LBF NRW’s Investigations
Since January 2025, the newly established LBF NRW has operated as Germany’s first state-level agency dedicated to financial crime investigations. With around 1,200 investigators, the authority focuses on digital economic activity. At the center of current efforts is a newly formed “influencer team” that targets economically successful content creators whose income from advertising deals, product placements, or gifts has been underreported or not declared at all.
The main allegation: influencers officially register as residents abroad — often in Dubai — while continuing to operate predominantly from Germany. This practice not only avoids German income tax but frequently bypasses trade and value-added tax (VAT) obligations as well. Proving such cases is challenging, particularly when advertising appears in ephemeral formats like „stories“ that disappear after 24 hours. NRW, however, is reported to have developed investigative tools to track these temporary promotional activities, with other states now adopting similar methods.
Why Action Is Needed
In NRW alone, approximately 200 criminal proceedings are currently underway. Most cases involve five-figure tax losses, but some reach into the millions. Since 2024, Hamburg has been conducting targeted audits of the sector, analyzing platform and agency data. Other federal states have announced plans for cross-border cooperation to pursue similar cases.
III. Conclusion
Digital income is subject to the same tax obligations as traditional commercial activity. All types of economic benefit are relevant under tax law — including free products, travel expenses, or other perks. Authorities in NRW and Hamburg are currently setting benchmarks in the regulatory oversight of the social media sector and are increasingly seen as models within the European Union.
In both NRW and Hamburg, influencers, agencies, and advertising partners are advised to conduct a thorough tax audit. Moving one’s residence to the UAE does not automatically exempt an individual from German tax liability. Critical factors — such as continued control over business operations in Germany or maintaining one’s actual center of life in the country — remain decisive. A voluntary self-disclosure may, under specific conditions, result in immunity from prosecution, provided it is complete and submitted in a timely manner.
