In July, news reports indicated that North Rhine-Westphalia had identified tax evasion totaling approximately €300 million by influencers based in Dubai. The State Office for Combating Financial Crime (LBF NRW) has formed a task force called the “Influencer Team.”

But what are the rules, exactly?

The influencer industry is therefore no longer a legal gray area. Anyone who promotes products or services for the German market must comply with German laws—regardless of whether they live in Berlin, New York, or Dubai. What matters is where the advertisement has an impact, not where it is displayed.

1. Labeling Advertising – Complying with Competition Law

In Germany, the Unfair Competition Act (UWG) and the Telemedia Act (TMG) apply.

Influencers must:

• Make advertisements clearly recognizable—with explicit labels such as“Advertisement”or“Ad.”
• Make the commercial purpose transparent—it must not be concealed.
• Do not make misleading statements—content must be true and verifiable.

Example:
An influencer in Spain posts a video in German, lists prices in euros, and ships products to Germany. He must comply with the same advertising regulations as an influencer in Germany.

2. Legal Notice Requirements—Even for Those Residing Abroad

According to Section 5 of the German Telemedia Act (TMG), every commercial website must have an easily accessible legal notice containing:

• full name
• valid mailing address
• Email address

This also applies to influencers abroad if they target German users.
In serious cases, authorities can access the data through international legal assistance.

3. Respect copyrights

Images, music, videos, or text may only be used if the appropriate usage rights have been obtained.
Anyone who infringes copyright may receive a cease-and-desist letter or be sued even abroad if the content is accessible in Germany.

4. Data Protection – The GDPR Applies Worldwide

As soon as influencers process personal data of individuals in the EU (e.g., email addresses for newsletters), they must comply with the General Data Protection Regulation (GDPR).
This applies even if the influencer lives abroad.

5. Market Location Principle – The Target Market Is the Deciding Factor

Under the “market location” principle, regulations are based on where the advertising is targeted.
Anyone targeting German consumers must comply with German law—regardless of where they live. Platforms such as Instagram, YouTube, and TikTok must also respond to complaints from German authorities.

6. Liability When the Influencer Is Difficult to Reach

If a foreign influencer is not subject to the jurisdiction of German authorities (e.g., due to the absence of an enforcement treaty), clients in Germany may be sued:

• Companies that hire the influencer
• Agencies that arrange the contract

Legal Basis:

• § 8(2) UWG: Businesses are liable for the actions of third parties they have engaged just as they are for their own actions.
• Liability for Aiding and Abetting: Anyone who participates in a violation of the law may also be held liable.

7. Liability of Influencers to Clients

Influencers are often required by contract to agree to comply with applicable law.
If they violate this agreement, the client may seek damages—for example, for:

• Costs of cease-and-desist letters or lawsuits
• Reputational Damage

Even without a contract, tort liability may arise if an influencer violates the law through negligence or willful misconduct.

8. Taxes for Foreign Residents – Example: Dubai

Many influencers move to Dubai to save on taxes. Nevertheless, they may still have tax obligations in Germany:

• Unlimited Tax Liability: Anyone who continues to have close personal or economic ties to Germany (family, business activities, extended stays) remains subject to unlimited tax liability here.
• Limited Tax Liability: Even if you are not a resident, income from German sources (e.g., advertising deals with German companies) may be subject to tax.
• No Double Taxation Agreement: As of January 1, 2022, there is no longer a valid DTA between the two countries. This means that income earned in the UAE by individuals subject to unlimited tax liability in Germany is taxed under German tax law, without the provisions of a DTA to prevent double taxation applying.
• Sales Tax: May apply when services are provided to German end customers—regardless of their place of residence.