Why OnlyFans Models Are Moving to Poland

In recent years, there has been a noticeable increase in the number of OnlyFans creators relocating to Poland. The key factor behind this trend is Poland’s tax-friendly environment, particularly the lump sum tax system, which allows digital content creators to pay a fixed percentage of their revenue. This taxation model eliminates the complexities of deductions and extensive bookkeeping while providing a lower and more predictable tax burden compared to progressive tax structures in other countries. The 8.5% lump sum tax rate is one of the lowest in the world, making Poland an exceptionally attractive destination for OnlyFans creators seeking to maximize their earnings.

Choosing the Right Tax Rate

The 8.5% lump sum tax rate is widely accepted in Polish tax practice as applicable to OnlyFans creators. The platform primarily facilitates the sale of digital content, such as photos and videos, which aligns with tax classifications for digital entrepreneurs. Since this activity does not fall under higher tax rate categories, creators can benefit from a more favorable tax structure without facing significant regulatory challenges.

The Taxable Basis: Why Net Revenue Should Be Considered

A fundamental issue in taxing OnlyFans creators is determining whether their taxable income should be based on the full Fan Payment (gross) or only the Creator Earnings (net revenue received after the platform’s commission deduction).

Under Poland’s lump sum tax system, expense deductions are generally not permitted. However, a crucial question arises: should the 20% platform fee charged by OnlyFans be regarded as a non-deductible cost, or should it be excluded from taxable income altogether? There are strong arguments to support the latter—that OnlyFans creators should only be taxed on the net amount received rather than the full payment.

The Role of OnlyFans in Transactions

To clarify the taxable basis, it is important to examine the contractual framework of OnlyFans. The platform’s agreement explicitly states that the relationship exists between the Fan and the Creator, with OnlyFans primarily acting as a payment processor rather than a contracting party.

At first glance, this might suggest that creators receive the full Fan Payment and then pay a 20% fee to OnlyFans. However, in practice, creators never have access to the full amount—OnlyFans deducts its commission before transferring the remaining earnings. This distinction has significant tax implications.

Arguments for Taxing Only the Net Amount

1. Creators Never Receive the Full Payment The total Fan Payment never reaches the creator’s account. OnlyFans automatically deducts its commission, transferring only the net earnings. If a portion of income is never received, it is reasonable to argue that it should not be considered taxable revenue.
2. Legal Ownership of Revenue Polish tax law defines taxable income as the amount legally owed to the taxpayer. Since creators never have a legal right to the full Fan Payment, the 20% platform fee should not be considered their income. Instead, it should be recognized as OnlyFans’ revenue.
3. Platform Fees as a Business Model Many digital platforms operate with a similar model, deducting a percentage of user earnings as a service fee. In similar cases, tax authorities and courts have acknowledged that these fees belong to the platform, not the individual earning revenue through it.
4. Precedent and Risk Mitigation While tax authorities might argue that the gross amount should be taxed, there is a reasonable legal basis for contesting this view. Seeking a formal tax ruling could provide clarity and set a precedent that benefits many creators.

How to Benefit from the Polish Tax System

To take advantage of Poland’s favorable tax system, you must become a Polish tax resident. This requires permanently relocating to Poland and spending the majority of the year there.
Next, you need to register a business and opt for the lump sum tax regime. This is a straightforward process, and most administrative formalities are simple to complete. There is no need to worry about complex regulations, as the system is designed to be accessible and easy.

Conclusion

The 8.5% lump sum tax rate in Poland is one of the lowest globally, making it highly advantageous for OnlyFans creators. While the safest assumption is that taxable revenue includes the full Fan Payment, strong arguments support taxing only the net amount received. Given the structure of financial transactions, the deducted portion is never truly part of the creator’s revenue. As a result there are compelling reasons to claim that only 80% of earnings should be taxable. A tax ruling could provide clarity and further strengthen this favorable tax position for creators in Poland.

Jerzy Gaweł
Partner – Tax Advisor