diff --git a/pkg/config/abra.go b/pkg/config/abra.go
new file mode 100644
index 00000000..ecd799af
--- /dev/null
+++ b/pkg/config/abra.go
@@ -0,0 +1,104 @@
+package config
+
+import (
+	"os"
+	"path"
+	"path/filepath"
+
+	"github.com/sirupsen/logrus"
+	"gopkg.in/yaml.v3"
+)
+
+// LoadAbraConfig returns the abra configuration. It tries to find a abra
+// configuration file (see findAbraConfig for lookup logic). When no
+// configuration was found it returns the default config.
+func LoadAbraConfig() Abra {
+	wd, _ := os.Getwd()
+	configFile := findAbraConfig(wd)
+	if configFile == "" {
+		logrus.Debugf("no config file found")
+		return Abra{}
+	}
+	data, err := os.ReadFile(configFile)
+	if err != nil {
+		// Do nothing, when an error occurs
+		logrus.Debugf("error reading config file: %s", err)
+		return Abra{}
+	}
+
+	config := Abra{}
+	err = yaml.Unmarshal(data, &config)
+	if err != nil {
+		// Do nothing, when an error occurs
+		logrus.Debugf("error loading config file: %s", err)
+		return Abra{}
+	}
+	logrus.Debugf("config file loaded from: %s", configFile)
+	config.configPath = configFile
+	return config
+}
+
+// findAbraConfig recursively looks for a abra.y(a)ml file in the given directory.
+// When the file was not found it calls the function again with the parent
+// directory until the home directory is hit. When no abra config was found it
+// returns an empty string.
+func findAbraConfig(dir string) string {
+	dir, err := filepath.Abs(dir)
+	if err != nil {
+		return ""
+	}
+	if dir == os.ExpandEnv("$HOME") || dir == "/" {
+		return ""
+	}
+	p := path.Join(dir, "abra.yaml")
+	if _, err := os.Stat(p); err == nil {
+		return p
+	}
+	p = path.Join(dir, "abra.yml")
+	if _, err := os.Stat(p); err == nil {
+		return p
+	}
+	return findAbraConfig(filepath.Dir(dir))
+}
+
+// Abra defines the configuration file for abra.
+type Abra struct {
+	configPath string
+	AbraDir    string `yaml:"abraDir"`
+}
+
+// GetAbraDir returns the abra dir. It has the following logic:
+// 1. check if $ABRA_DIR is set
+// 2. check if abraDir was set in a config file
+// 3. use $HOME/.abra when above two options failed
+func (a Abra) GetAbraDir() string {
+	if dir, exists := os.LookupEnv("ABRA_DIR"); exists && dir != "" {
+		logrus.Debug("read abra dir from $ABRA_DIR")
+		return dir
+	}
+	if a.AbraDir != "" {
+		logrus.Debug("read abra dir from config file")
+		if path.IsAbs(a.AbraDir) {
+			return a.AbraDir
+		}
+		// Make the path absolute
+		return path.Join(a.configPath, a.AbraDir)
+	}
+	logrus.Debug("using default abra dir")
+	return os.ExpandEnv("$HOME/.abra")
+}
+
+var config = LoadAbraConfig()
+
+var (
+	ABRA_DIR                 = config.GetAbraDir()
+	SERVERS_DIR              = path.Join(ABRA_DIR, "servers")
+	RECIPES_DIR              = path.Join(ABRA_DIR, "recipes")
+	VENDOR_DIR               = path.Join(ABRA_DIR, "vendor")
+	BACKUP_DIR               = path.Join(ABRA_DIR, "backups")
+	CATALOGUE_DIR            = path.Join(ABRA_DIR, "catalogue")
+	RECIPES_JSON             = path.Join(ABRA_DIR, "catalogue", "recipes.json")
+	REPOS_BASE_URL           = "https://git.coopcloud.tech/coop-cloud"
+	CATALOGUE_JSON_REPO_NAME = "recipes-catalogue-json"
+	SSH_URL_TEMPLATE         = "ssh://git@git.coopcloud.tech:2222/coop-cloud/%s.git"
+)
diff --git a/pkg/config/abra_test.go b/pkg/config/abra_test.go
new file mode 100644
index 00000000..f60ad6a9
--- /dev/null
+++ b/pkg/config/abra_test.go
@@ -0,0 +1,103 @@
+package config
+
+import (
+	"log"
+	"os"
+	"path/filepath"
+	"testing"
+)
+
+func TestFindAbraConfig(t *testing.T) {
+	wd, err := os.Getwd()
+	if err != nil {
+		log.Fatal(err)
+	}
+	tests := []struct {
+		Dir    string
+		Config string
+	}{
+		{
+			Dir:    "testdata/abraconfig1",
+			Config: filepath.Join(wd, "testdata/abraconfig1/abra.yaml"),
+		},
+		{
+			Dir:    "testdata/abraconfig1/subdir",
+			Config: filepath.Join(wd, "testdata/abraconfig1/abra.yaml"),
+		},
+		{
+			Dir:    "testdata/abraconfig2",
+			Config: filepath.Join(wd, "testdata/abraconfig2/abra.yml"),
+		},
+		{
+			Dir:    "testdata/abraconfig2/subdir",
+			Config: filepath.Join(wd, "testdata/abraconfig2/abra.yml"),
+		},
+		{
+			Dir:    "testdata",
+			Config: "",
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.Dir, func(t *testing.T) {
+			config := findAbraConfig(tc.Dir)
+			if config != tc.Config {
+				t.Errorf("\nwant: %s\ngot:  %s", tc.Config, config)
+			}
+		})
+	}
+}
+
+func TestLoadAbraConfigGetAbraDir(t *testing.T) {
+	wd, err := os.Getwd()
+	if err != nil {
+		log.Fatal(err)
+	}
+	t.Setenv("ABRA_DIR", "")
+
+	t.Run("default", func(t *testing.T) {
+		cfg := LoadAbraConfig()
+		wantAbraDir := os.ExpandEnv("$HOME/.abra")
+		if cfg.GetAbraDir() != wantAbraDir {
+			t.Errorf("\nwant: %s\ngot:  %s", wantAbraDir, cfg.GetAbraDir())
+		}
+	})
+
+	t.Run("from config file", func(t *testing.T) {
+		t.Cleanup(func() { os.Chdir(wd) })
+		err = os.Chdir(filepath.Join(wd, "testdata/abraconfig1"))
+		if err != nil {
+			log.Fatal(err)
+		}
+
+		cfg := LoadAbraConfig()
+		log.Println(cfg.GetAbraDir())
+		wantAbraDir := filepath.Join(wd, "testdata/abraconfig1/abra.yaml/foobar")
+		if cfg.GetAbraDir() != wantAbraDir {
+			t.Errorf("\nwant: %s\ngot:  %s", wantAbraDir, cfg.GetAbraDir())
+		}
+	})
+
+	t.Run("default when config file is empty", func(t *testing.T) {
+		t.Cleanup(func() { os.Chdir(wd) })
+		err := os.Chdir(filepath.Join(wd, "testdata/abraconfig2"))
+		if err != nil {
+			log.Fatal(err)
+		}
+
+		cfg := LoadAbraConfig()
+		wantAbraDir := os.ExpandEnv("$HOME/.abra")
+		if cfg.GetAbraDir() != wantAbraDir {
+			t.Errorf("\nwant: %s\ngot:  %s", wantAbraDir, cfg.GetAbraDir())
+		}
+	})
+
+	t.Run("from env variable", func(t *testing.T) {
+		t.Setenv("ABRA_DIR", "foo")
+		cfg := LoadAbraConfig()
+		wantAbraDir := "foo"
+		if cfg.GetAbraDir() != wantAbraDir {
+			t.Errorf("\nwant: %s\ngot:  %s", wantAbraDir, cfg.GetAbraDir())
+		}
+	})
+}
diff --git a/pkg/config/env.go b/pkg/config/env.go
index 45bd9757..d2ba1598 100644
--- a/pkg/config/env.go
+++ b/pkg/config/env.go
@@ -16,26 +16,6 @@ import (
 	"github.com/sirupsen/logrus"
 )
 
-// getBaseDir retrieves the Abra base directory.
-func getBaseDir() string {
-	home := os.ExpandEnv("$HOME/.abra")
-	if customAbraDir, exists := os.LookupEnv("ABRA_DIR"); exists && customAbraDir != "" {
-		home = customAbraDir
-	}
-	return home
-}
-
-var ABRA_DIR = getBaseDir()
-var SERVERS_DIR = path.Join(ABRA_DIR, "servers")
-var RECIPES_DIR = path.Join(ABRA_DIR, "recipes")
-var VENDOR_DIR = path.Join(ABRA_DIR, "vendor")
-var BACKUP_DIR = path.Join(ABRA_DIR, "backups")
-var CATALOGUE_DIR = path.Join(ABRA_DIR, "catalogue")
-var RECIPES_JSON = path.Join(ABRA_DIR, "catalogue", "recipes.json")
-var REPOS_BASE_URL = "https://git.coopcloud.tech/coop-cloud"
-var CATALOGUE_JSON_REPO_NAME = "recipes-catalogue-json"
-var SSH_URL_TEMPLATE = "ssh://git@git.coopcloud.tech:2222/coop-cloud/%s.git"
-
 const MAX_SANITISED_APP_NAME_LENGTH = 45
 const MAX_DOCKER_SECRET_LENGTH = 64
 
diff --git a/pkg/config/testdata/abraconfig1/abra.yaml b/pkg/config/testdata/abraconfig1/abra.yaml
new file mode 100644
index 00000000..b125d5b2
--- /dev/null
+++ b/pkg/config/testdata/abraconfig1/abra.yaml
@@ -0,0 +1 @@
+abraDir: foobar
diff --git a/pkg/config/testdata/abraconfig1/subdir/.gitkeep b/pkg/config/testdata/abraconfig1/subdir/.gitkeep
new file mode 100644
index 00000000..e69de29b
diff --git a/pkg/config/testdata/abraconfig2/abra.yml b/pkg/config/testdata/abraconfig2/abra.yml
new file mode 100644
index 00000000..e69de29b
diff --git a/pkg/config/testdata/abraconfig2/subdir/.gitkeep b/pkg/config/testdata/abraconfig2/subdir/.gitkeep
new file mode 100644
index 00000000..e69de29b