Bulgaria becomes a leading Nearshoring hub for German companies

German firms are increasingly locating production, research and development, and software operations in Bulgaria, turning the Balkan state into a key nearshoring destination for the German economy. A recent survey of 83 German‑Bulgarian Chamber of Commerce members shows that 89 % rate Bulgaria’s position as stable or improving, 77 % plan to keep their presence, and investments total billions of euros, creating thousands of high‑pay jobs.

The wave includes a strong automotive component, with German manufacturers establishing component factories across the country, while German‑backed R&D centers in Sofia and other cities develop software for autonomous driving, energy and digital services. Despite optimism, nearly half of the surveyed firms anticipate a deterioration in the broader macro‑economic environment, reflecting lingering concerns over fiscal stability as Bulgaria prepares to adopt the euro in 2026.