Bulgarians Return Home: Remote Work & Rising Income from German Jobs

A growing number of Bulgarians who sought work abroad are returning home, drawn by the financial benefits of earning a Western salary while enjoying a lower cost of living. This trend, particularly among young and well-educated professionals, is reshaping migration patterns and offering a potential economic boost to Bulgaria.

Financial Incentives Drive the Return

Kristina Borisova, a 41-year-old who lived in Germany for eight years, is among those who have made the move back to Bulgaria. Working remotely for a German energy company from her home in Pomorie, a Black Sea town, she now enjoys a net income approximately €300 higher each month than she did while living in Germany. This is due to Bulgaria’s lower taxes and social security deductions.

Radimir Bitsov, who returned to Sofia from Berlin during the COVID-19 pandemic, experiences a similar benefit, reporting a net income approximately 20% higher after his return. For Bitsov, the decision to move back was also driven by a desire to be closer to family, especially with the birth of his child.

Impact on German Companies

This reverse migration isn’t just benefiting returning Bulgarians. Konstantin Ruskov, a Munich-based lawyer advising German companies, notes a significant increase in the number of firms allowing employees to relocate to Bulgaria. He reports growing from five such clients at the start of the pandemic to at least 80 currently, with companies ranging from those with a single employee in Bulgaria to those with twenty.

Ruskov explained that a 30-year-old client earning €8,000 gross monthly in Munich was left with a net income of around €4,500 after taxes and contributions, and after rent, had limited disposable income. In Bulgaria, the same salary yields a net income of approximately €6,000.

Challenges and Uncertainties

Despite the financial advantages, returning Bulgarians are encountering some challenges. Borisova and Bitsov both noted a recent increase in the cost of living in Bulgaria, which is partially offsetting the benefits of a higher net income. Some goods, like clothing and food, are now even more expensive in Bulgaria than in Germany, according to Borisova.

Concerns about the political situation in Bulgaria are also present. Silvi Bojadzhieva, who also returned to Sofia after ten years in Munich, expressed worry following the resignation of the Bulgarian government in December after protests over a proposed tax increase. Bitsov indicated he could consider returning to Germany if the political climate deteriorates.

The trend of returning Bulgarians could be affected by future economic or political changes. If tax burdens and social security contributions increase in Bulgaria without corresponding improvements in services and infrastructure, the financial incentive to return could diminish.

Frequently Asked Questions

Why are Bulgarians returning home?

Bulgarians are returning home primarily due to the financial benefits of earning a Western salary while enjoying a lower cost of living in Bulgaria, as well as a desire to be closer to family.

How are German companies benefiting from this trend?

German companies benefit from lower non-wage labor costs, as employees are insured through the Bulgarian system, and avoid investment costs associated with establishing a presence in Bulgaria.

Is this trend likely to continue?

The continuation of this trend is dependent on factors such as the political and economic stability of Bulgaria, and the cost of living remaining relatively lower than in Western European countries.

As more Bulgarians weigh the benefits of returning home, will this trend continue to reshape the economic landscape of both Bulgaria and Germany?