Best Fintech Lawyers in Targovishte

About Fintech Law in Targovishte, Bulgaria

Targovishte is a regional administrative centre in northeastern Bulgaria. The fintech activity that takes place there - startups, payment services, software development, and small-scale financial intermediaries - is governed primarily by Bulgarian national law and by European Union rules. There is no separate municipal fintech rulebook for Targovishte. Instead, companies and individuals in Targovishte follow the same national licensing, anti-money-laundering, data-protection, consumer-protection, and tax rules that apply across Bulgaria. For regulatory matters, the Bulgarian National Bank, the Financial Supervision Commission and other national authorities set the framework and supervise compliance.

Why You May Need a Lawyer

Fintech projects combine fast-moving technology with regulated financial services. You may need a lawyer when you are planning any of the following:

- Launching a payments service or electronic money business that could require licensing or registration.

- Designing a crypto-asset or token offering, or deciding whether a token falls under securities or payment rules.

- Building a digital banking or lending product that touches on consumer-credit law and licensing.

- Drafting platform, user, and partner agreements, terms of use and service-level agreements.

- Implementing customer due diligence and anti-money-laundering policies to satisfy AML obligations.

- Handling personal data and ensuring GDPR compliance for customers and employees.

- Responding to regulator inquiries, inspections, or enforcement proceedings.

- Resolving disputes with customers, partners, or vendors, including litigation or arbitration in local courts.

- Structuring cross-border activities, outsourcing, or group arrangements that raise tax and regulatory issues.

Local Laws Overview

This overview highlights the legal areas most relevant to fintech in Targovishte and Bulgaria generally. It is a summary and not a substitute for tailored legal advice.

- Payment services and electronic money - Payment services and activities involving e-money are regulated under Bulgarian law transposing EU rules. Entities that provide payment or e-money services may need registration or a licence, and may be supervised by the Bulgarian National Bank.

- Anti-money-laundering and counter-terrorist financing - Bulgarian AML law and EU AML directives require risk assessments, customer due diligence, transaction monitoring and reporting of suspicious activity. These requirements apply to many fintech business models.

- Data protection and privacy - The EU General Data Protection Regulation - GDPR - applies in Bulgaria. Companies must have lawful bases for processing personal data, implement security measures, and respect data-subject rights. National data protection rules and supervisory authority practice also matter.

- Consumer protection - Bulgarian consumer protection law covers digital financial products sold to consumers. Rules on clear information, transparency of fees, cooling-off rights and unfair contract terms must be observed.

- Corporate and commercial - Company formation, corporate governance, shareholder agreements, and commercial contract law are governed by Bulgarian company law and the Commercial Act. Business registration is processed centrally at the state registry.

- Securities and investment services - If a fintech product resembles a security or investment instrument, the Financial Supervision Commission and the Markets in Financial Instruments rules may apply.

- Taxation - Income tax, corporate tax, VAT and tax reporting apply to fintech activities. Cryptocurrency taxation and VAT treatment can be complex and depends on the factual nature of the transactions.

- EU-level frameworks - EU directives and regulations such as PSD2, the e-money framework, AML directives and wider initiatives influence Bulgarian law. Emerging EU regimes - for example those addressing crypto-assets - are shaping national practice and should be monitored.

Frequently Asked Questions

Do I need a licence to operate a payments app in Targovishte?

It depends on the nature of the service. If you hold or manage client funds, execute payment transactions, or issue electronic money, licensing or registration under Bulgarian payment services law may be required. Simple technical facilitation without custody of funds may be outside the licensing scope, but this assessment is fact-specific and you should get legal advice before launching.

Are cryptocurrencies legal in Bulgaria and in Targovishte?

Cryptocurrencies are not legal tender in Bulgaria, but trading and holding crypto-assets is generally possible. Depending on the nature of your activity - exchange services, custodial services, investment products or token offerings - various rules may apply, including AML, securities regulation and tax reporting. EU-level developments on crypto-assets are also relevant.

What AML obligations will a small fintech company have?

If your fintech activity falls within the categories covered by Bulgarian AML law, you must implement customer due diligence, verify identity for certain transactions, monitor unusual activity, keep records, and report suspicious transactions to the competent authority. Even small firms often need written AML policies and designated compliance officers.

How does GDPR affect fintech operations in Targovishte?

GDPR applies to any processing of personal data of EU residents. Fintech companies must have lawful grounds for processing, secure data, provide privacy notices, support data-subject rights, and carry out data-protection impact assessments for high-risk processing. Local data protection authority guidance and recordkeeping requirements must be followed.

Can I offer loans or credit through a fintech platform?

Offering loans typically triggers consumer-credit and consumer-protection rules and may require licensing or authorisation depending on whether you finance the lending yourself or only connect borrowers and lenders. Interest-rate disclosure, default procedures and responsible lending obligations must be considered.

What are the typical steps to form a fintech company in Bulgaria?

Typical steps include choosing a legal form, registering the company with the Commercial Register, opening corporate bank accounts, preparing governance documents, ensuring compliance with sector-specific authorisations if required, setting up AML and data-protection policies, and seeking any needed licences. Specialist legal and tax advice helps streamline this process.

Who supervises fintech firms in Bulgaria?

Supervision depends on the activity. The Bulgarian National Bank supervises payment systems, banks and, in many cases, payment and e-money institutions. The Financial Supervision Commission oversees securities, investment services and insurance-related activities. Data protection matters fall to the Commission for Personal Data Protection. Other national authorities may be involved for tax and consumer protection.

What documentation should I prepare for a licensing application?

Applications typically require corporate documents, business plans, internal policies (including AML and data protection), descriptions of IT systems and security, evidence on governance and key personnel, capital and financial projections, and proof of necessary professional qualifications for managers. Exact requirements vary by licence type.

How much will legal and compliance costs be for a small fintech in Targovishte?

Costs vary widely depending on complexity. Initial legal advice, company formation and basic compliance policies may be moderate. Licensing applications, advanced regulatory work, or ongoing compliance and reporting increase costs. Budgeting for professional legal, compliance and tax services is prudent when planning expansion or regulated services.

Can I get local legal help in Targovishte or do I need a Sofia law firm?

There are legal professionals across Bulgaria including in Targovishte who can assist with company and commercial matters. For specialist fintech regulatory work or complex licensing, many clients work with firms or counsel in Sofia who have specific financial-regulation experience. Choose a lawyer or firm with relevant fintech, AML and data-protection expertise, whether local or national.

Additional Resources

Useful national bodies and resources to consult when seeking fintech legal advice include:

- The Bulgarian National Bank - for payment systems, payment services and banking supervision.

- The Financial Supervision Commission - for securities and investment services related questions.

- The Commission for Personal Data Protection - for GDPR implementation and guidance.

- The National Revenue Agency - for taxation and reporting requirements.

- The Bulgarian Registry Agency and Commercial Register - for company formation and filings.

- Industry associations, incubators and technology hubs - for practical business support and networking. Local chambers of commerce and national fintech or payments associations can provide market information and contacts.

- Legal and accounting professionals with fintech experience - for tailored regulatory, corporate and tax advice.

Next Steps

If you need legal assistance for a fintech project in Targovishte, consider the following practical next steps:

- Define your business model in writing - describe services, jurisdictions, customers and flows of funds.

- Conduct an initial legal and regulatory checklist to identify possible licence needs, AML obligations and data-protection requirements.

- Engage a lawyer with fintech and regulatory experience. Ask about prior work on payment licences, AML programmes and GDPR compliance.

- Prepare core documentation - company formation papers, business plan, internal policies, and technical security descriptions - to support any licence application.

- Seek early engagement with regulators if licensing or authorisation is likely - pre-application meetings can clarify requirements and reduce delays.

- Budget for compliance - both initial setup and ongoing reporting, audits and legal support.

- If you are unsure where to start, arrange a short scoped consultation to get a clear roadmap and cost estimate for the legal work your project requires.

Getting reliable legal advice early helps limit regulatory risk, protect your customers and build a sustainable fintech business in Targovishte and across Bulgaria.