How crypto billionaires structure their assets

Introduction

Imagine a vault that holds both digital gold and tangible jewels; that’s the world of crypto‑wealth structuring today. How crypto billionaires structure their assets is no longer an abstract question but a practical roadmap for preserving value, ensuring compliance, and unlocking premium real estate. At SBH Capital Partners, we help our clients transform their digital assets into tangible wealth, guiding them through a seamless journey from blockchain to beachfront property.

Definitions

First, let’s decode the key terms that shape this landscape. Crypto‑assets are digital tokens recorded on blockchains, ranging from Bitcoin to ERC‑20 tokens. Tax neutrality means a jurisdiction imposes no additional taxes on capital gains or income, allowing investors to retain full proceeds. Saint Barthélemy’s tax model offers legal neutrality that is unique in the world; it blends French law with an independent fiscal regime, exempting certain crypto conversions from France’s flat tax (PFU). These concepts intertwine like a well‑orchestrated symphony, each note essential for the final performance.

Challenges

Crypto billionaires face a maze of regulatory hurdles. First, cross‑border taxation can trigger double taxation or unexpected withholding if not properly structured (Source: OECD 2024 Crypto‑Asset Guidance). Second, the lack of real substance in many jurisdictions raises AML and CFT concerns, risking sanctions or asset freezes (Source: FATF Crypto Recommendations). Third, converting volatile digital tokens into euros often incurs the French PFU of 30%, eroding gains before they can be invested (Source: French Tax Authority). Finally, maintaining confidentiality while satisfying rigorous KYC and reporting standards is a delicate balance.

Solutions & Strategies

The answer lies in a structured, jurisdiction‑anchored approach. By creating a local company registered in Saint Barthélemy, investors can achieve tax residency that shields them from the PFU when crypto gains are converted locally and reinvested (Source: ACPR Guidance on Corporate Structures). This entity must demonstrate real substance—registered office, local bank account, annual accounts prepared by an accredited accountant, and a physical presence of the managing director. The company then acts as a conduit: crypto is transferred to its wallet, converted into euros via regulated partners, and used to purchase luxury property under French civil law. Throughout this process, local management guarantees the company's tax residency and international compliance, ensuring that every transaction is traceable and compliant with EU AML directives (Source: EU AML Directive). This type of arrangement is not tax evasion, but an optimization strategy governed by French law.

SBH Capital Partners’ Offer

At SBH Capital Partners, we provide a turnkey solution that turns the abstract into concrete steps. Step 1: Company Creation—we register a 100% investor‑owned entity in Saint Barthélemy, complete with local office and banking arrangements (estimated cost €5,000 + annual fees). Step 2: Crypto‑to‑Fiat Conversion Onsite—cryptocurrencies are transferred to the company’s wallet; we partner with regulated exchanges to convert into euros within the island’s jurisdiction, avoiding the PFU. Step 3: Property Acquisition—the company purchases luxury real estate in Saint Barthélemy using local notaries and due diligence teams (average purchase price €10–30 M). Step 4: Five‑Year Management—SBH acts as the gérant, handling governance, accounting, KYC/AML monitoring, and regulatory filings. The management fee is 6% of the property’s value for five years, covering all administrative costs (e.g., €600,000 on a €10 M asset). Step 5: After‑Five Years Options—investors may either take over management, retaining tax residency, or renew SBH’s mandate at 1% per year for ongoing compliance. Throughout, we maintain strict confidentiality and provide quarterly performance reports.

Conclusion

In the high‑stakes world of crypto wealth, structuring assets like a seasoned architect ensures resilience, compliance, and growth. By leveraging Saint Barthélemy’s unique tax neutrality, investors can convert digital gains into appreciating real estate while preserving full proceeds. SBH Capital Partners offers a proven framework—company creation, onsite conversion, property acquisition, and long‑term management—that transforms complex regulations into a smooth journey. Ready to turn your crypto fortune into tangible luxury? Contact us today for a confidential consultation.

FAQ

Q1: Why choose Saint Barthélemy over other jurisdictions?

A1: Its legal neutrality, French jurisdictional stability, and exemption from the PFU on locally reinvested crypto gains make it uniquely advantageous (Source: Saint Barthélemy Official Site).

Q2: Is this structure considered tax evasion?

A2: No. It is a legal optimization strategy under French law, ensuring compliance with EU AML directives and local regulations (Source: ACPR Guidance).

Q3: How does SBH ensure confidentiality?

A3: All transactions are conducted through regulated partners, with strict data protection protocols and discreet client handling, respecting business secrecy (Source: French Legal Code).

Q4: What happens after the five‑year management period?

A4: Investors can assume direct control while maintaining tax residency or renew SBH’s mandate at 1% per year for ongoing oversight, ensuring continued compliance and neutrality.

Q5: Are there any upfront costs before conversion?

A5: Yes. Company registration (~€5,000), legal fees, and initial crypto transfer costs apply; however, these are offset by the long‑term tax savings from PFU exemption.