Successfully investing in Bulgaria

last updated on 3 September 2025 | reading time approx. 3 minutes

How do you assess the current economic situation in Bulgaria? »
How would you describe the investment climate in Bulgaria? Which sectors offer the largest potential? »
What challenges do German companies face during their business ventures into Bulgaria? »
How is Bulgarian labour law changing? »
In your opinion, how will Bulgaria develop? »

How do you assess the current economic situation in Bulgaria?

In recent years, Bulgaria has experienced dynamic economic development, despite political instability and frequent changes of governments. However, since last year, the country has had a stable government, and expectations are that this positive economic development will continue.

After joining the Schengen area by air and water in 2024, Bulgaria became full member of the Schengen Area on 1 January 2025. This is expected to improve the business environment and investment in the country, as well as improve the partnership and trade relations with other countries.

In addition, one of the current government's main goals is to introduce the euro in Bulgaria as of 1 January 2026. Bulgaria's membership in the Eurozone would has positive aspects and is seen as an inevitable perspective for the country's further integration into the European Union. As a result, this will lead to a strengthening of the country's economic and social policy. Targeted policy is currently being pursued to prepare the country's economy for the upcoming changes and to avoid any risks so that Bulgaria can join the Eurozone as an equal member.

How would you describe the investment climate in Bulgaria? Which sectors offer the largest potential?

Bulgaria is an attractive country for investments as the corporate tax is only 10 percent and offers lower labour costs compared to other European countries.

The service sector in Bulgaria contributes the most to the added value of the country's economy, followed by industry, while income from the agricultural sector is in last place.

The frontrunners in the services sector are "Information technology activities" and "Wholesale and retail trade". A significant proportion of companies and employees in the service sector work in the "trade" and "tourism" sectors, which employ a smaller number of highly qualified specialists. The industrial sector, on the other hand, is characterised by the "generation, transmission and distribution of electricity". The lower investment in fixed assets could partly explain why the number of companies and jobs in the service sector is higher than in industry.

Based on the current situation, the most attractive sectors for development and investment are likely to be information and communication technologies (this is the sector with the highest innovation intensity and the highest number of registered patents), the energy industry, agriculture and food processing as well as mechanical and vehicle engineering. Not to be neglected are the areas of transport and logistics as well as health and pharmaceuticals, which have also seen steady growth in recent years.

In recent years, there has been solid interest in photovoltaics, wind power and batteries in connection with the EU's low-carbon transition policy. Investment in the logistics and transport business is also expected to increase after Schengen entry.

What challenges do German companies face during their business ventures into Bulgaria?

While Bulgaria has a well-educated workforce, there is increasing competition for qualified professionals, especially in IT and engineering sectors. However, employers have found a number of solutions for this challenge, such as expanding in-house training, focusing on increasing digitalisation, and increasing cooperation with educational institutions.

How is Bulgarian labour law changing?

Keeping up with the modern digital economy. Bulgarian legislation is constantly seeking to keep up to date and meet the needs of the country's developing economy.

Significant step in the modernization of the Bulgarian labour law is the introduction of a more flexible remote work (home office) regulation. Building on this process, a major change in the legal framework regarding the electronic employment record enters into force in 2025. The physical employment booklet (labor record book) for employees will no longer be used to record relevant information about the employment relationship.

This change digitizes and simplifies data entry for employers, while eliminating the risks of loss or destruction of employment information and the associated legal consequences or liability.

In your opinion, how will Bulgaria develop?

Bulgaria is expected to continue to follow global market trends, while at the same time strengthening its relations with its European partners. The satisfaction of companies with Bulgaria's membership in the European Union is undeniable, which is why the attitude of companies towards Bulgaria's accession to the Schengen area and expectations towards the introduction of the single European currency are positive. In addition, the latest trade and investment data confirm the positive attitude of investors and entrepreneurs towards Bulgaria, who see the country as a good place to do business.