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The rise of Decentralized Finance (DeFi) has turned digital assets into liquid gold, yet the tax landscape remains as tangled as a vine in a tropical garden. For high‑net‑worth individuals and family offices, understanding how DeFi earnings are taxed is crucial before turning those gains into tangible wealth. At SBH Capital Partners, we help our clients transform their digital assets into tangible wealth while navigating this complex terrain.
DeFi refers to financial services built on blockchain that operate without traditional intermediaries. Private investors receive returns through staking, liquidity mining, or yield farming, generating taxable income in many jurisdictions. In France and its overseas collectivity Saint‑Barthélemy, gains from crypto are typically subject to the flat tax (PFU) of 30%, unless specific exemptions apply. The OECD’s 2024 guidance on virtual assets clarifies that “taxable events” include transfers, exchanges, or conversions to fiat, creating a clear audit trail for authorities.
First, the lack of standard reporting frameworks makes it hard to prove source‑of‑funds compliance. Second, DeFi’s pseudonymous nature can trigger anti‑money‑laundering (AML) scrutiny, especially when converting large sums. Third, investors face double taxation: local taxes in their home country and the PFU in France if they convert abroad. Finally, many structures risk being labeled as tax evasion rather than optimization, jeopardizing legal standing.
A robust strategy begins with a dedicated entity registered in Saint‑Barthélemy, which enjoys French legal stability but offers unique tax neutrality. By converting crypto to euros within the island’s jurisdiction, investors avoid the PFU and can reinvest proceeds into real estate without triggering additional taxes. Local management ensures compliance with EU AML directives (Directive 2018/843) and French Code monétaire et financier, while maintaining confidentiality through a single‑shareholder company structure.
Our turnkey process starts with the creation of a 100% investor‑owned company in Saint‑Barthélemy. We handle:
For five years we act as the gérant, covering governance, regulatory filings, and compliance at a flat fee of 6% of the property value. After this period, you may either take over management or renew our mandate for 1% per year, preserving tax residency and the PFU exemption. Local management guarantees the company’s tax residency and international compliance, ensuring that “This type of arrangement is not tax evasion, but an optimization strategy governed by French law.”
DeFi offers unprecedented returns, but without a clear tax strategy, those gains can evaporate in bureaucracy. By leveraging Saint‑Barthélemy’s unique fiscal regime and SBH Capital Partners’ proven framework, private investors can convert digital wealth into appreciating real estate while maintaining compliance and confidentiality. Contact us today to start your journey from blockchain to beachfront.
FAQ
DeFi earnings converted locally are exempt from France’s flat tax (PFU) when reinvested into real estate, provided the company meets residency and substance criteria.
We partner with regulated custodians, perform full KYC/AML checks, and maintain audit‑ready records in accordance with EU Directive 2018/843.
Yes; you may assume control or renew our management at 1% of property value per year to retain tax residency benefits.
The framework follows French law, OECD guidance, and local regulations, ensuring it is a legitimate optimization strategy.
From company creation to property purchase typically takes 6–8 weeks, depending on asset availability and regulatory approvals.
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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