Considering the highly complicated geopolitical and economic situation in the world, including the strongly protectionist policies of the United States, German companies will increasingly feel the need to rethink the geographical structure of their production operations within Europe.
Not only because of rising trade barriers, tariffs, and various regulatory difficulties, many German firms will seek new locations that provide stable and attractive conditions enabling them to increase efficiency and competitiveness.
Following Bulgaria’s accession to the eurozone and the adoption of the euro as the official currency, the country’s strategic advantage has increased significantly, as all currency risk and transaction costs are eliminated while access to financing and credit is considerably facilitated.
The benefits of the new Industrial Parks Act of 2021 and the construction of new modern industrial parks are already well known (Sofia–Bozhurishte, Burgas, Stara Zagora, Ruse, Vidin, Sliven, Lovech, Pleven, and others).
There are industrial zones designated for general manufacturing, specialized industrial production, and high-tech activities, while their development may also receive support through European funding.
Investors will find not only suitable infrastructure but also administrative and financial support from the state, which has set the encouragement of investment in Bulgaria as a strategic objective. In addition, administrative costs will be significantly reduced.
The possibility of preferential local fees for technical and administrative services may also constitute an important facilitation.
Modern industrial parks have already been established across various parts of the country and are home to a large number of satisfied investors.
The low flat tax rate of 10% (both corporate and personal income tax), together with the political stability established after the general elections held in April and won by the newly created “Progressive Bulgaria” party, which secured a parliamentary majority, now creates conditions for the rapid completion of judicial reform, the lawful functioning of all regulatory bodies, and reliable anti-corruption measures and enforcement. All this will also pave the way for broader access to European financing.
Particularly promising are both the recently approved 25 priority zones facilitating the construction of wind power plants with a total capacity of up to 2,078 MW, and the decisions concerning the construction of railway corridors Burgas–Varna, Alexandroupolis–Kavala, and Bucharest–Sofia–Athens. German corporations, with their extensive experience in such projects, will undoubtedly show strong interest.
Equally significant are the planned concessions for the Hemus, Rila, and Black Sea motorways, which are also highly attractive for German business after years during which such opportunities remained inaccessible.
Bulgaria specializes in the production of various automotive components, including cable harnesses, electronic modules, sensors, plastic and metal parts, and interior elements for many German partners such as BMW, Mercedes-Benz, Audi, and Volkswagen.
In addition to exporting raw materials, copper, and copper alloys, Bulgaria is also a center for automotive software development and engineering, including software solutions for managing various electric vehicle functions, as demonstrated by WITTE Automotive.
The country’s defense industry has traditionally been highly developed and has gained even greater significance under current circumstances.
A potential joint production project with Rheinmetall would provide an additional major boost and create more than 1,000 new jobs.
Companies such as Liebherr, Siemens, Aurubis, Schwarz Gruppe, Metro, Bosch, WITTE Automotive, and T-Systems already operate actively in Bulgaria. A further intensification of existing investments, along with the arrival of many new German companies seeking a suitable location within Europe itself, can now be expected. Bulgaria arguably offers some of the best comprehensive investment conditions not only in the Balkans but across Southeastern Europe.
Germany is Bulgaria’s largest trading partner, with bilateral trade in recent years reaching levels exceeding EUR 12 billion (compared to EUR 7.7 billion in 2020), while for the first time a balance between imports and exports has been achieved. Given Bulgaria’s rapid development in the aforementioned sectors, there is now even a slight predominance of Bulgarian exports to Germany.
In January 2026 alone, Bulgarian exports increased by 10.1%, reaching EUR 581 million (raw materials, copper, copper alloys, electrical equipment, machinery, and automotive components), confirming this trend.
Stable economic growth exceeding 3% annually, predictability, and political stability for investors — an aspect particularly valued by German companies — together with the 10% flat tax and the excellent working conditions created in the country, make Bulgaria a highly attractive location for German corporations.
This is further reinforced by the emerging potential represented by tens of thousands of educated graduates, thousands of qualified Bulgarians returning to the country, as well as new settlers who see their future in Bulgaria.
Particularly relevant areas for future cooperation, beyond those already mentioned, include infrastructure solutions, energy and renewable energy sources, engineering and software solutions, telecommunications, and various IT services.
An entirely new field of enormous strategic importance is artificial intelligence, and Bulgaria increasingly appears poised to become one of the European centers in this area.
All of the above creates favorable conditions for numerous joint ventures with German companies, which will undoubtedly find reliable long-term partners in Bulgaria.
