dbEntities db = new dbEntities(); foreach (ttCategory c in db.ttCategories) { var tags=(from t in db.ttproduktes where t.ttCategories.Contains(c) select t.ttTags);
In linq-to-entities, you can't use Contains with a class, you can only use it with a primitive type, so you need to change this:
where t.ttCategories.Contains(c)
to
where t.ttCategories.Any(x => x.UniqueProperty == c.UniqueProperty)