Knowledge for creators
What you should knowas a creator, legally speaking.
As soon as you work with brands, labeling, tax, social insurance and the rights to your content all come into play. Here you will find the key points explained in plain terms, so you know which questions to ask. The page describes the situation in Germany.
Labeling advertising correctly
If you receive money, products or anything else in return for a post, you must label it as advertising. The obligation arises from § 5a Abs. 4 of the Act against Unfair Competition (UWG), § 6 Abs. 1 of the Digital Services Act (DDG) for online content and § 22 of the Interstate Media Treaty (MStV) for video and streaming services. The notice must be immediately recognizable, so at the start of a post or video and not hidden among hashtags.
The German terms “Werbung” (advertising) or “Anzeige” (advertisement) have proven effective, combined with the platforms' labeling tools such as Instagram's paid partnership label or the branded content marker on TikTok and Twitch. According to the media authorities' guide, English terms such as “ad” or “sponsored” are not reliably sufficient for a German audience. In a stream, the notice belongs on screen and permanently visible for as long as the advertising is running.
On September 9, 2021 the Federal Court of Justice (BGH) ruled (I ZR 90/20 and other cases) that posts without any consideration, for example about products you bought yourself, do not have to be labeled as advertising. But as soon as a brand gives you something for the post, even a free product, labeling is mandatory. Anyone who leaves it out risks formal warning letters (Abmahnungen) and fines.
Artists' social insurance fund: who pays what
Companies that regularly commission self-employed artists and writers pay the artists' social insurance levy (Künstlersozialabgabe) to the artists' social insurance fund (Künstlersozialkasse). In many cases this includes fees paid to creators. In 2026 the levy is 4.9% of the fee. It is paid by the client alone.
For you this means the levy does not belong on your invoice and must not be deducted from your fee. If a client asks you to cover it, talk to us about it.
Separately, self-employed creators can, under certain conditions, take out health, long-term care and pension insurance through the Künstlersozialkasse. You then pay roughly half of the contributions, and the federal government and levy-paying companies cover the rest. Whether your work is recognized as artistic or journalistic and whether you meet the income thresholds is assessed by the Künstlersozialkasse case by case.
Business registration and tax office: the first steps
Anyone who regularly earns money from collaborations is usually self-employed. These are the first steps.
- 01
Register a business
Creators are usually treated as running a trade. You register with the trade office (Gewerbeamt) of your town or municipality, often online. For individuals, trade tax (Gewerbesteuer) has an allowance of €24,500 profit per year.
- 02
Tax registration with the tax office
After registering, you complete the tax registration questionnaire (Fragebogen zur steuerlichen Erfassung) via ELSTER. This is also where you decide whether to use the small business scheme.
- 03
Record all income
Products you may keep in return for a post can also be taxable income. So record every collaboration with its value and date.
Small business scheme under § 19 UStG
Under the small business scheme (Kleinunternehmerregelung) of the German VAT Act (Umsatzsteuergesetz, UStG), you issue invoices without VAT. Since January 1, 2025 the following limits apply to total revenue.
| Revenue in the previous year | no more than €25,000 |
| Revenue in the current year | no more than €100,000 |
| Note on the invoice | Reference to the VAT exemption for small businesses under § 19 UStG |
If the €100,000 limit is exceeded in the current year, the scheme ends from that transaction onwards. Get advice on this from a tax advisor.
Understanding usage rights and buy-outs
In Germany, the copyright in your photos and videos always remains with you. A brand can only receive usage rights from you, meaning permission to use your content on certain channels, for a certain period and in a certain territory. If the contract does not specify this precisely, under § 31 Abs. 5 of the German Copyright Act (Urheberrechtsgesetz, UrhG) the brand only receives the rights needed for the purpose of the contract.
A buy-out means that, for a flat fee, you grant very extensive rights, often unlimited in time and for all channels including ads. That is worth considerably more than a single post on your channel. If a brand uses your content as a paid ad, for example via Partnership Ads on Meta or Spark Ads on TikTok, surcharges of 20 to 50% on the fee are standard in the market according to an analysis by Influee from March 2026.
What to look out for with usage rights
- On which channels may the brand show your content: only organically on its own profiles, or in ads too?
- How long does the right last, and does it end automatically?
- May the brand cut, edit or combine your content with its own material?
- Is the usage exclusive, or may you keep using the content yourself?
- Is every extension of usage paid for separately?
Not legal or tax advice
This page gives a general overview and does not replace legal or tax advice. For your personal situation, please contact a lawyer or a tax advisor. As a creator with FNLY Agency, every collaboration contract we conclude for you is checked by us for labeling and usage rights.
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FAQ
Frequently asked questions
When do I have to label a post as advertising?
Whenever you receive something in return for the post, such as money, products or other benefits. The legal basis is § 5a Abs. 4 UWG, § 6 Abs. 1 DDG and § 22 MStV. According to the BGH ruling of September 9, 2021 (I ZR 90/20), posts about products you bought yourself with nothing in return do not have to be labeled.
How do I label advertising correctly?
With the word “Werbung” or “Anzeige” right at the start of the post, plus the platform's labeling tool. In a livestream the notice should stay visible for as long as the advertising is running. English terms such as “ad” are not reliably sufficient for a German audience.
Do I have to pay the artists' social insurance levy as a creator?
No. The levy (Künstlersozialabgabe) of 4.9% in 2026 is paid by the client directly to the Künstlersozialkasse. It does not belong on your invoice and must not be deducted from your fee.
Can I get insured through the Künstlersozialkasse as a creator?
Under certain conditions, yes. The Künstlersozialkasse assesses case by case whether your work counts as artistic or journalistic and whether you meet the income requirements. If you are accepted, you pay roughly half of the contributions to health, long-term care and pension insurance.
Do I have to register a business as an influencer?
Anyone who regularly earns income from collaborations with the intention of making a profit is generally considered to be running a trade and must register a business (Gewerbe). This is followed by tax registration with the tax office via ELSTER. If in doubt, a tax advisor can clarify this.
What revenue limits apply to the small business scheme?
Since January 1, 2025, total revenue may be no more than €25,000 in the previous year and no more than €100,000 in the current year. As a small business under § 19 UStG, you issue invoices without VAT and with a note on the exemption.
What is a buy-out in influencer collaborations?
A buy-out is an extensive grant of usage rights for a flat fee, often unlimited in time and for all channels including ads. Because the brand can use your content for much longer and more widely, the fee should be correspondingly higher.
Do I lose my copyright if I grant rights to a brand?
No. In Germany, copyright always remains with you. The brand only receives usage rights, to the extent set out in the contract. If the scope is not specified precisely, under § 31 Abs. 5 UrhG it only receives the rights needed for the purpose of the contract.
Creator knowledge
Rather have someone check it?
At FNLY Agency we check every collaboration contract for labeling, usage rights and fair conditions before you sign.