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In today’s globalized world, wealth no longer resides within the borders of a single country. Entrepreneurs, investors, and crypto holders live internationally, hold assets in multiple jurisdictions, and often relocate for tax or lifestyle reasons. Yet, when it comes to inheritance, this global mobility can create a silent danger: double taxation.
Imagine passing away as a tax resident in one country while owning property, companies, or bank accounts in another. Each jurisdiction may claim the right to tax your estate — once for being the place of residence, and again for being the place of asset location. The result? Heirs facing overlapping inheritance taxes, delayed succession, and legal complexity that can dismantle even the most carefully built fortune.
This article unpacks the mechanics of double taxation in inheritance, the rules governing tax residence at death, and how careful structuring — particularly through Saint-Barthélemy’s unique fiscal regime — can protect international families from losing wealth to conflicting tax systems.
In life and in death, tax residence determines which country has primary taxing rights over your assets and income. Most jurisdictions define residency through:
For example, under Article 4 B of the French Tax Code, a person is tax-resident in France if they have their home, principal activity, or economic interests there. Upon death, these criteria are reassessed to determine where the succession is taxable.
Inheritance taxation typically relies on two principles:
When both countries apply these rules simultaneously — and no treaty exists between them — double taxation arises.
Unlike income or corporate taxes, inheritance taxes are rarely harmonized. Few tax treaties exist to prevent double inheritance taxation (France currently has only a handful, e.g. with Sweden and Italy).
This lack of coordination means that international families — especially those holding property in Europe and digital assets abroad — are increasingly exposed to cross-border succession conflicts.
Consider a French national who becomes tax-resident in Portugal but continues to own a property in France and digital assets in Switzerland. Upon their death:
Each jurisdiction acts within its rights — and none provides automatic credit for taxes paid elsewhere. The heirs could face overlapping tax burdens exceeding 60% of the estate’s value.
Digital assets complicate matters further. The location of crypto is ambiguous:
This uncertainty can lead to triple exposure — residence country, platform jurisdiction, and asset custodian country all claiming authority.
Even when treaties exist, relief mechanisms require documentation, appraisals, and lengthy filings. In practice, heirs face years of administrative limbo while assets are frozen for valuation and clearance. The cost of legal representation, expert opinions, and delayed distributions can erode estate value even further.
Thus, the trap is not only fiscal but structural: double taxation amplifies with every extra jurisdiction that touches the estate.
Civil law determines who inherits; tax law determines how much is taken. They operate independently. You may write a valid will under French civil law, but if your estate includes assets in other jurisdictions, those countries will apply their own inheritance tax regimes regardless of your will’s provisions.
The OECD Model Convention contains general guidance for eliminating double taxation on income and capital, but not on inheritance. As a result, each jurisdiction interprets “domicile” differently, often leading to conflict.
The EU Succession Regulation (Brussels IV, 2015) harmonizes civil succession law but explicitly excludes taxation. Therefore, while heirs may rely on uniform legal rules to determine which law applies, they cannot rely on the same uniformity for taxation.
This leaves high-net-worth families in a grey zone — legally coordinated but fiscally exposed.
The first rule of international estate planning: align your residence with your assets. When both civil domicile and tax residence are in the same jurisdiction, that country has clear and primary taxing authority.
This reduces the risk of overlap and simplifies reporting.
Authorities evaluate residence by facts, not declarations. To secure tax residency in a chosen country, you must demonstrate:
Without these, your “residency” can be disregarded, and your estate re-taxed in another jurisdiction.
Owning international property through a local holding company shifts the fiscal nexus of those assets to that company’s jurisdiction. Upon your death, heirs inherit shares (a local asset), not multiple foreign properties — reducing exposure to multiple inheritance regimes.
Countries or territories that tax only local-source income and assets — such as Saint-Barthélemy — offer an effective shield against double taxation. If your residence and company are located in a territorial regime, foreign assets and gains remain outside scope.
Establishing succession structures during your lifetime — e.g., donations, trusts, or holding companies — can segment your estate and reduce exposure to concurrent taxation. Each component is governed by one clear fiscal authority.
Even the best structure fails without proper administration. Ongoing compliance, accounting, and governance ensure that your residency remains valid and recognized.
As a French overseas collectivity, Saint-Barthélemy combines French legal oversight with independent taxation. Residents and locally managed entities are exempt from French income, wealth, and inheritance taxes, while enjoying the protection of French civil law and notarial systems.
If you reside — physically and fiscally — in Saint-Barthélemy, your entire estate falls under local jurisdiction. Because the island taxes only assets located on its territory, all foreign assets remain outside scope.
Moreover, under French constitutional law, mainland France cannot levy national inheritance tax on Saint-Barth residents once they have completed five years of continuous residence.
This creates a legally compliant zone of neutrality:
At SBH Capital Partners, we design inheritance-proof structures that align residence, asset ownership, and governance under one compliant jurisdiction:
The outcome: a structure that is transparent to regulators, yet immune to double taxation elsewhere.
When death occurs, heirs inherit a locally domiciled entity — not fragmented foreign assets — and taxation is governed solely by Saint-Barthélemy’s territorial system.
Double taxation is the silent destroyer of international wealth. It strikes not because investors break the law, but because they fail to harmonize their fiscal footprint across jurisdictions.
In the 21st century, inheritance planning is no longer about wills or family trusts — it’s about residency architecture: where you live, where your assets are held, and under which legal framework they coexist.
Saint-Barthélemy stands as one of the few places where civil security and fiscal neutrality intersect, enabling global families to preserve both wealth and privacy for generations.
With SBH Capital Partners, your succession is not an afterthought — it’s a strategy. Our mission is to transform your international portfolio into a coherent, legally defensible ecosystem where no tax authority competes for your legacy.
Because true legacy is not only what you leave — it’s where you leave it.
1. What causes double taxation in inheritance?
It occurs when two or more jurisdictions each claim the right to tax the same estate — one based on residence, another on asset location.
2. Can treaties prevent double inheritance taxation?
Only a few exist globally. Most countries, including France, apply their own inheritance tax rules without automatic relief, creating overlap.
3. How can Saint-Barth residency prevent double taxation?
As a fiscally autonomous territory, Saint-Barthélemy taxes only local assets. Residents and locally managed entities are exempt from French and foreign inheritance taxes.
4. Do I need to live full-time in Saint-Barthélemy?
Yes, genuine residence requires physical and fiscal presence for five consecutive years, with local management and activity.
5. How does SBH Capital Partners help?
We create, manage, and maintain local entities that secure fiscal residency, coordinate compliant asset conversion, and preserve family wealth from cross-border taxation.
Discretion, compliance, and excellence in Saint-Barthélemy.
Fill out the form below to access a private consultation with our expert team.
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