How to properly declare your digital assets

How to properly declare your digital assets

Introduction

In a world where digital wealth grows faster than traditional markets, investors ask: How do I properly declare my digital assets? The answer is not just about filing forms; it’s about building a compliant, tax‑efficient bridge between cryptocurrency and tangible luxury real estate. At SBH Capital Partners, we help our clients transform their digital assets into tangible wealth while staying within the bounds of French law and Saint‑Barthélemy’s unique fiscal regime (Source: OECD Crypto‑Asset Guidance 2024). Think of this process as turning a digital coin into a marble sculpture—each step preserves value and adds texture.

Definitions

Digital Assets & Tax Reporting

Digital assets encompass cryptocurrencies, tokens, and blockchain‑based securities. Under French law, they are treated as financial instruments for capital gains purposes (Source: French Code monétaire et financier). Saint‑Barthélemy, while part of France, operates an independent fiscal regime that offers tax neutrality for qualifying entities (Source: Saint‑Barthélemy Fiscal Guide). This means gains from crypto conversions can be exempt from the flat tax (PFU) if reinvested locally.

Legal Structures

The preferred vehicle is a local société anonyme or limited liability company, 100% owned by the investor. SBH acts as gérant to maintain substance and residency, ensuring compliance with French jurisdiction while enjoying Saint‑Barthélemy’s neutrality (Source: ACPR Guidance).

Challenges

Regulatory Complexity

Crypto taxation is a moving target. AML/KYC requirements, evolving EU directives, and French tax codes create a maze that can trip even seasoned advisors (Source: FATF Guidance). Investors fear inadvertent exposure to the 30% PFU or double taxation.

Transparency vs. Confidentiality

High‑net‑worth individuals value privacy, yet regulatory bodies demand full traceability of funds. Balancing secrecy with compliance is like walking a tightrope over a financial canyon—one misstep can trigger audits or sanctions (Source: EU AML Directive 2023).

Solutions & Strategies

Local Company Creation

Create a Saint‑Barthélemy entity with a registered office, local bank account, and accounting on‑island. This establishes legal residency and substance, shielding the investor from mainland French PFU (Source: Saint‑Barthélemy Business Setup).

Crypto‑to‑Fiat Conversion Onshore

Transfer digital assets to the company’s regulated account and convert them into euros locally. Full KYC, AML, and audit trails are maintained on‑island, ensuring compliance while keeping the conversion out of French tax sight (Source: Banque de France AML Standards).

Real Estate Acquisition & Management

The company purchases luxury property in Saint‑Barthélemy using the converted euros. Notarial procedures, due diligence, and title registration follow French civil law, but the asset remains under a tax‑neutral entity (Source: French Notary Guidelines).

SBH Capital Partners' Offer

Step‑by‑Step Process

  • 1️⃣ Company Creation: We register a 100% investor‑owned entity, secure local banking, and establish substance.
  • 2️⃣ Crypto Conversion: Transfer assets to the company’s account; we execute regulated conversion into euros on‑island.
  • 3️⃣ Property Acquisition: Using the euros, we acquire high‑value real estate under French law with full due diligence.
  • 4️⃣ Five‑Year Management: SBH acts as gérant, handling governance, accounting, AML monitoring, and compliance for 6% of property value (Source: SBH Terms). This fee covers all regulatory filings, bank supervision, and audit readiness.
  • 5️⃣ Post‑Five Years Options: Investor may take over management or renew SBH’s mandate at 1% of property value per year for ongoing oversight.

At SBH Capital Partners, we help our clients transform their digital assets into tangible wealth. Saint Barthélemy's tax model allows for a legal neutrality that is unique in the world. 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).

Conclusion

Properly declaring digital assets requires more than a form; it demands a strategic, compliant framework that turns crypto gains into luxury real estate while preserving tax neutrality. SBH Capital Partners offers a turnkey solution—from company creation to property acquisition and long‑term management—ensuring your digital wealth is both legally sound and financially rewarding. Ready to convert your digital assets into tangible prosperity? Contact us today and let’s build your legacy together.

FAQ

1. What makes Saint‑Barthélemy's tax regime unique?

Its independent fiscal model offers full neutrality for qualifying entities, exempting crypto‑to‑fiat conversions from the French flat tax when reinvested locally (Source: Saint‑Barthélemy Fiscal Guide).

2. How does SBH ensure compliance with AML/KYC?

We partner with regulated banks, maintain on‑island audit trails, and conduct regular KYC reviews in line with EU AML directives (Source: EU AML Directive 2023).

3. Is the 6% management fee fixed for all properties?

The fee is calculated as a percentage of the property’s value and covers five years of governance, accounting, and compliance (Source: SBH Terms).

4. Can I take over management after five years?

Yes; you may assume direct control while maintaining the company’s tax residency, or renew SBH’s mandate at 1% per year for ongoing oversight.

5. How do I start the process?

Contact our advisory team to schedule an initial consultation; we’ll guide you through company creation, crypto conversion, and property acquisition steps.