Paying taxes as an escort lady

There is probably no topic less sexy than taxes. And yet we have to talk about it. Because as a self-employed escort lady you have to deal with the tax office and pay taxes. We explain to you which bureaucratic hurdles you have to overcome and how you can effortlessly master the topic of taxes as an escort lady.

First an important note: Our tips do not replace professional tax advice for escorts. There is no guarantee that they are correct—especially if you have individual circumstances that we cannot assess. If you want to know more about the topic, we recommend a visit to a tax consultancy.

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Do escorts have to pay taxes?

When escort agencies talk about the dazzling job of being an escort, they rarely address the bureaucracy. And the models themselves also don't like to be told that they have to pay tax on their earnings. There is no way around it.

Of course: many people associate the topic of taxes with stress and anxiety. Will I be outed as an escort at the tax office? What if they take all my money? That's why we're going to explain to you in detail what you need to watch out for.

First the basics: VAT, trade tax and income tax are different types of tax that many escort ladies have to pay.

Let's briefly go through the three categories:

  • Sales tax: you know it in everyday life as value added tax. It is 19% on sexual services, and you have to pay it if you earn more than 22,000 Euros per year. You have to pay the VAT to the tax office every month, but you can offset it against your business expenses.
  • Trade tax: As an escort, you do not have to register a trade, but in some cases you still have to pay trade tax. This depends on your place of business and amounts to about 15%.

  • Income tax: This tax is due on all your income, regardless of whether you are employed or self-employed. Every year, you declare how much money you have earned in your tax return as a person. Based on this, you have to pay a certain amount of tax. You should set aside enough money for this, about 25% of your income.
  • (Entertainment tax: In some cities and municipalities, you have to pay entertainment tax—this varies from person to person. Ask your tax advisor about the regional regulations! )

This way your tax return won't be a drama

The first step as an escort lady is to register at the tax office. You have to fill out several forms and applications. This is basically not witchcraft, but a tax advisor will save you a lot of headaches. You don't have to register with the tax office what you actually do for a living: Most escorts register as an escort service or massage service.

Many escort ladies give the tax advisor power of attorney. He receives all documents and letters from the tax office in his office, and you don't have to deal with them anymore. Either he clarifies with you what he should reply to the tax office or informs you directly about his work steps. This way you are on the safe side.

You might ask yourself why you have to deal with all these things when you work for an escort agency. This is because as an escort, you are self-employed and not an employee.

Are escort ladies employees of an agency

You pay your agency a commission per date—this finances the website and the provision of security on the date. You can deduct this as a business expense. This is why a reputable escort agency will always issue you with an invoice and receipt when you hand over the commission in cash. Otherwise, it is a good idea to transfer the money and keep your bank statements safe.

As a self-employed escort lady, you can deduct other things from your taxes. Everything you need for your job is a work item: make-up, lingerie, sex toys for extra services, but also travel expenses to the date, condoms, or expenses for advertising. Different ladies have different costs that they can deduct from their income. For this, it's best to get advice from your tax advisor and record your income and expenses in a table…

Checklist: Bureaucracy for escort ladies

  1. Registration as a prostitute: If you offer sexual services in Germany, you have to register. This also applies if you “only” want to do pocket money meetings or are in the field of erotic massages.
  2. Health counselling according to the Prostitution Protection Act: During registration you have to have a talk with a health officer who will explain the basics of safer sex to you.
  3. Registration with the tax office: You have to register with the tax office in order to pay taxes. This is not fun, but it is absolutely necessary to avoid getting into trouble.
  4. Clarify health insurance: As a self-employed person, you have to register with the health insurance company and pay contributions if you don't have another job. However, you are always covered if you have to go to the doctor.
  5. Allow a sideline business: Theoretically, you have to be allowed to have a side business if you have another employment contract besides your job as an escort. But your boss will not know what you are doing unless you tell him. You should be very discreet about your employment.

Tips from the field: Taxes are not witchcraft

The whole subject seems like an insurmountable obstacle at first. But after a few weeks you'll get the hang of it - especially if you hire tax advice. You can do your own taxes if you're good with numbers. In any case, it's a good idea to set aside a sufficient cushion so that your first tax return doesn't catch you cold.

The tax office is not an enemy, but a necessary thing.

Despite all the taxes, it is worth working as an escort. You should just keep in mind that you have to pay taxes as an escort and that you will have to deal with some other bureaucratic issues. It's better to take care of it beforehand than to be annoyed afterwards!

We are not tax consultants, but an escort agency that cares. We will guide you through the first steps and can recommend a good tax office that works with sex workers without prejudice. If you have any further questions or would like to become an escort, please feel free to contact us. We are looking forward to the contact!

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