The term “Nebenerwerb” literally translates to “side income” or “secondary occupation” in English.
What is “Nebenerwerb”?
“Nebenerwerb” refers to the income or occupation that supplements a person’s primary job or source of income in Germany. It is often associated with self-employment or freelance work that is carried out alongside a main job, studies, or other primary responsibilities. This concept is particularly relevant for individuals seeking to diversify their income streams or test a business idea without abandoning the financial security of their main employment.
More information about “Nebenerwerb”
In Germany, a “Nebenerwerb” can take various forms, such as a small business, freelance work, or any other legal activity that generates additional income. It is subject to certain legal and tax regulations, and depending on the income level, it may affect one’s tax bracket and social security contributions. It’s essential for individuals to register their “Nebenerwerb” with the relevant authorities and comply with the regulations to avoid penalties.
Related to “Nebenerwerb”
Here are some additional terms that are related to “Nebenerwerb”:
- GewerbeGewerbe translates to "trade" or "business" in English. It refers to a self-employed commercial activity in Germany, encompassing a wide...: A registered business activity, which can be a main or side occupation.
- FreiberuflerFreiberufler, literally translated as "freelancer" in English, refers to self-employed professionals in Germany who offer specialized services based on their...: A freelancer who engages in professional services such as consulting, writing, or artistic activities.
- Kleinunternehmerregelung: A tax regulation for small businesses with a turnover below a certain threshold.
- EinkommensteuerEinkommensteuer, literally translated as "income tax," is a tax levied on the income of individuals in Germany. It is a...: Income tax that applies to all forms of income, including earnings from a “Nebenerwerb”.
- GewerbesteuerThe term "Gewerbesteuer" translates to "trade tax" in English and refers to a tax levied on the income of businesses...: A municipal tax on business operations, which may apply to a “Nebenerwerb” if it is classified as a trade.
In conclusion, a “Nebenerwerb” offers individuals in Germany the opportunity to explore entrepreneurial ventures or freelance work while maintaining the stability of their primary income source.