Cyprus' tax authority has tracked down half a million undeclared OnlyFans earnings
Cyprus' tax authority has tracked down half a million undeclared OnlyFans earnings
Half a million undeclared OnlyFans earnings uncovered by Cypriot tax authorities.
The Cyprus Tax Authority has identified around 300 individuals and companies – including several foreign residents – who have earned income through OnlyFans and other online platforms but have not paid tax on it.
The Cyprus Tax Authority has identified around 300 individuals and companies – including several foreign residents – who have earned income through OnlyFans and other online platforms but have not paid tax on it.
As the newspaper Politis reports, the results came to light through targeted surveillance of social media. Both Cypriots and foreigners were discovered earning income through subscriptions and digital sales.
The vast majority of those affected had not declared this income in their tax returns.
OnlyFans, a UK-based platform, allows content creators to monetize their content — mostly adult in nature — through paid subscriptions.
The tax authority explained that the investigation is not only focused on OnlyFans but also on other digital revenue streams that are increasingly prevalent in Cyprus.
During the checks, cases were discovered in which individuals had earned up to €500,000 – without any tax return.
The investigation has also expanded to include other professions, including beauticians, taxi drivers, hairdressers, travel agencies and small business owners who offer their services or bookings through social media.
The authorities are currently preparing official requests to get those affected to file corrected tax returns and pay outstanding taxes. In the event of further non-compliance, there is a risk of retroactive tax assessments, fines and, in extreme cases, criminal consequences.
According to Politis, more than 50 travel agencies were also discovered, each of which had generated more than €10,000 in undeclared revenue – mostly via electronic payments or online marketplaces.
Since July 2021, EU Directive 2011/16/EU (DAC7) has required digital platforms to share user data such as identity, tax residency and total annual income with national tax authorities.
Cyprus now receives this data directly from platform operators and other EU member states, allowing for a cross-check between reported and actual revenues.
According to officials, this new system, together with the OSS (One Stop Shop) VAT mechanism, strengthens cross-border transparency and closes loopholes that were previously used to conceal digital income.
The tax authority is now also turning its focus to YouTube, Twitch, Instagram and other digital marketplaces where influencers, freelancers and small retailers promote their products and services.
New analytics tools make it possible to compare bank details, spending patterns and online activity – especially for people whose lifestyle does not match their declared income.
OnlyFans, which gained global notoriety during the pandemic, now counts millions of content creators. Although the platform is mostly known for adult content, musicians, coaches, and artists also use it.
The Cypriot investigation is the first large-scale local control of income generated through social subscription services.
The tax officials stressed that all income – physical or digital – is taxable under Cypriot law. Those who do not comply risk retroactive taxation, fines or criminal prosecution.
According to the authorities, the aim of the ongoing campaign is not only to collect taxpayers' money, but also to ensure equal treatment between traditional and digital professional groups – in line with the reality of a rapidly developing online economy.
Economy | Friday, October 24, 10:10 a.m.
Source: CyprusMail.com
Author: Souzana Psara
