Half a Million in Undeclared Digital Earnings Traced by Cyprus Tax Authorities
Half a Million in Undeclared Digital Earnings Traced by Cyprus Tax Authorities
More than €500,000 in undeclared digital income, primarily from OnlyFans and similar online platforms, has been traced by the Cyprus Tax Department. This operation is the first large-scale local investigation into earnings from social media subscription services.
The findings emerged from the department's social media monitoring checks, which identified around 300 individuals and legal entities, including Cypriots and foreign residents, who failed to declare revenue from subscriptions and digital sales in their tax filings.
The investigation targets undeclared digital income not only from OnlyFans—a UK-based platform known for monetizing adult-themed content—but also from a broad range of other online activities that have become increasingly common in Cyprus.
Digital Economy Scrutinised
The audit has significantly expanded beyond subscription platforms, now including:
- Beauticians, Hairdressers, and Taxi Drivers
- Travel Agents and Small Business Owners offering services or bookings through social media.
Specifically, checks revealed cases of individuals earning up to €500,000 entirely undeclared. Furthermore, more than 50 taxi drivers were flagged for undeclared income exceeding €100,000, often received through electronic payments and online marketplaces.
Enforcement and New Framework
Authorities are now preparing to send formal notices urging those identified to file corrected tax returns and settle outstanding taxes. The Tax Department stressed that continued non-compliance will lead to backdated taxation, fines, and potential criminal proceedings.
Since July 2021, the EU Directive 2011/16/EU (DAC7) requires digital platforms to share user data—including identity, tax residence, and total annual income—with national tax authorities. Cyprus now receives this data directly, enabling cross-checking of declared income against real transactions.
Officials emphasized that this new framework, alongside the One Stop Shop (OSS) VAT mechanism, enhances cross-border transparency, allowing them to effectively target income from platforms like YouTube, Twitch, Instagram, and other digital marketplaces. The ultimate goal is to ensure equal treatment and compliance for both traditional and digital professions.
MFRadio.de | Editorial Office Cyprus | 24 October 2025 Source: Cyprus Mail Author: MF Editorial Team
