Family offices are adopting crypto as an asset class

Family offices are adopting crypto as an asset class

Introduction

Imagine a family office holding digital gold that can be turned into a beachfront villa with the same ease as swapping stocks for bonds. Family offices are adopting crypto as an asset class, seeking diversification, liquidity, and new growth avenues while staying compliant. In this guide we explain why Saint‑Barthélemy is the ideal hub, how to navigate regulatory waters, and how SBH Capital Partners can turn your digital holdings into tangible luxury real estate.

Definitions

Crypto assets are digital tokens that use cryptography for security and operate on distributed ledgers. They differ from traditional securities by their decentralised nature and 24/7 market access. A family office is a private wealth management firm set up to manage the investments of a single affluent family, often with bespoke structures to preserve privacy and tax efficiency (Source: OECD Family Office Report). In Saint‑Barthélemy, a company registered under French law enjoys a unique fiscal regime that offers tax neutrality for capital gains derived from crypto conversions when reinvested locally (Source: French Code Monétaire et Financier).

Challenges

Family offices face three main hurdles when adding crypto to their portfolios: regulatory uncertainty, tax exposure, and liquidity management. The EU’s AML Directive requires rigorous KYC/AML procedures that can slow transactions (Source: EU AML Directive). Onshore conversions often trigger France’s flat tax (PFU) of 30%, eroding gains. Finally, converting volatile digital assets into illiquid real estate without breaching compliance is like navigating a stormy sea—one wrong move can sink the entire strategy.

Solutions/Strategies

The optimal path blends legal structuring with local jurisdictional advantages. First, create a 100% investor‑owned company in Saint‑Barthélemy; this entity becomes the tax resident and holds the crypto assets. Second, transfer tokens to a regulated onshore wallet and convert them into euros within the island’s banking system—this step avoids the PFU because the conversion occurs outside mainland France (Source: ACPR Guidance). Third, use the euros to acquire luxury property through a French notarial process, ensuring full traceability and compliance. Throughout, maintain strict KYC/AML records and local accounting to satisfy both Saint‑Barthélemy’s and France’s regulatory frameworks.

SBH Capital Partners' Offer

At SBH Capital Partners, we help our clients transform their digital assets into tangible wealth. Our turnkey process includes:

  • Company Creation: We register a local entity in Saint‑Barthélemy, ensuring legal residency and substance.
  • Crypto‑to‑Fiat Conversion Onsite: Secure transfer to our regulated wallet, conversion to euros, and immediate deposit into the company’s bank account.
  • Property Acquisition: We manage the entire purchase chain—due diligence, notarial deed, title registration—under French law.
  • Five‑Year Management: Our fee of 6% of property value covers governance, accounting, KYC/AML monitoring, and regulatory filings for five years.
  • Post‑Five‑Years Options: After the initial period, you can either take over management or renew our services at 1% per year, keeping tax residency intact.

Local management guarantees the company’s tax residency and international compliance. This type of arrangement is not tax evasion, but an optimization strategy governed by French law (Source: AMF Guidance). Saint‑Barthélemy's tax model allows for a legal neutrality that is unique in the world.

Conclusion

Family offices are adopting crypto as an asset class to capture high growth while mitigating risk. By leveraging Saint‑Barthélemy’s neutral fiscal regime and SBH Capital Partners’ proven framework, you can convert digital wealth into luxury real estate with full compliance and confidentiality. Ready to diversify? Contact us today to start your journey from blockchain to beachfront.

FAQ

Q1: Is this strategy legal?

A1: Yes, it complies with French law and Saint‑Barthélemy’s regulations; we follow OECD and EU AML guidelines (Source: OECD Crypto Guidance).

Q2: What happens to the crypto after conversion?

A2: The tokens are transferred to a regulated wallet, converted to euros, and held in the company’s bank account for property acquisition.

Q3: How is tax neutrality maintained?

A3: By keeping all conversions and reinvestments within Saint‑Barthélemy, we avoid France’s flat tax; local residency ensures exemption (Source: French Code).

Q4: What if I want to sell the property later?

A4: The company can dispose of the asset under French notarial rules; proceeds remain within the tax‑neutral structure unless you choose to distribute them.

Q5: Who handles ongoing compliance?

A5: SBH Capital Partners acts as gérant for five years, covering all regulatory filings and KYC/AML monitoring; after that, you may continue with us at a reduced fee or manage independently.