In multibody simulation (MBS) software, large structural components such as the tower are often modeled as flexible bodies using the Craig-Bampton method. While being very computationally efficient, nonlinear effects cannot be modelled in this way. The flange connections between the segments of tubular steel towers are one such source of nonlinearity. The magnitude of this nonlinearity increases with damages at the flanges as flange gaping becomes more common. The nonlinearities in the flanges lead to a changing stiffness and hence changing eigenfrequencies of the structure as a function of its deformation. In this paper, a nonlinear model of a tower with and without damages is being developed and validated based on an FEM model. The model is assembled from linear flexible bodies linked with nonlinear rotatory springs. The damages considered are broken bolts as well as axially symmetric angular flange gaps. It is shown that the MBS model closely emulates the FEM model including all nonlinear effects. The nonlinear tower model is incorporated into an existing MBS model of a commercial wind turbine in the 4 MW range. The eigenfrequencies of the full turbine model are being calculated using the build-in eigenvalue solver in Simpack. The results show a small but measurable decrease in eigenfrequencies compared to the linearized model, which scales with the extend of the damage.