"We are not paying taxes any more. Effective immediately: Free Entrance! Free Drinks! Free Sex!" the Pascha establishment in Salzburg posted on its website. A woman who answered the phone there on Sunday said it was no joke.

The Oesterreich newspaper showed a picture of men queued up outside to take advantage of the unusual offer.

It quoted owner Hermann Mueller as saying he would compensate from his own pocket the up to 10,000 euros ($11,270) a month that prostitutes working at the club will forego.

Mueller, who also operates brothels in four other cities in Germany and Austria, has complained in past media interviews about what he says has been punitive taxation and regulation of his businesses. He said he had paid nearly 5 million euros in taxes in Salzburg alone over the past decade.