Harry and Meghan: how much they earn and where does the income of the Dukes of Sussex come from
The Duke and Duchess of Sussex ignited social media and caused Buckingham Palace a "disappointment" by announcing on Wednesday that they will be leaving their duties as high-ranking members of the British royal family and that they will be financially independent.
The couple shared their decision on their Instagram account.
But how are they currently financed and what could be their new situation?
Who pays for Harry and Meghan's expenses?
The couple say that about 95% of their income comes from the Prince of Wales.
Prince Charles pays the expenses of the public duties of Prince Harry and Meghan, as well as the Dukes of Cambridge, and some of their private expenses.
In 2018-19, the year Meghan officially joined the Royal Family, this funding was just over $ 6.5 million.
The money comes from the income of Prince Charles's Duchy of Cornwall, a vast portfolio of real estate and financial investments, which raised $ 28.2 million in 2019.
Furthermore, around 5% of the income of the Dukes of Sussex comes from the Sovereign Grant, a mechanism through which the government gives money to the Royal Family to cover the expenses of official duties and the care of the royal palaces.
The Sovereign Grant is funded from the proceeds of the Crown Estate, the crown's commercial real estate.
These figures do not include security costs, which are covered separately.
What other income do they have?
Both dukes have considerable personal wealth.
Princes William and Harry received most of the $ 16.9 million fortune left by their mother, Princess Diana.
Also, when Harry turned 30 in 2014, he received about $ 13.3 million from a trust fund created by Diana, according to British media.
His great-grandmother, the Queen Mother, is also believed to have left Harry millions of pounds, according to Nick Witchell, a royal correspondent for the BBC.
Analysts at consultancy Wealth X estimate Harry's fortune at at least $ 25 million.
Meghan's personal fortune is estimated at about $ 5 million, according to data collected by the Town & Country website.
During her acting career, this site reports that the Duchess of Sussex earned $ 50,000 per episode of the legal drama Suits.
Markle also ran a lifestyle blog and designed her own fashion line for a Canadian brand.
What does it mean to them to be "financially independent"?
On their website, Harry and Meghan say that they will no longer receive funds through the Sovereign Grant, so they will become "financially independent members of the Royal Family."
However, the grant only provides 5% of their income and it is unclear if they will cede their other sources of funding.
The couple will continue to have a security force paid by the Metropolitan Police and financed by the taxpayers, but the figures for these expenses are not public.
The couple's intention to come and go from North America would add to this cost, but they may cover it themselves.
The couple say they have always financed their private trips, and this will continue to be the case.
This suggests the possibility that taxpayers will continue to pay for trips made to meet their official commitments.
They also plan to keep their UK home, Frogmore Cottage in Windsor, which was renovated in 2019 for $ 3.1 million, funded by taxpayers.
Are royalty allowed to earn their own money?
As high-ranking members of royalty, Harry and Meghan are not allowed to earn income in any way.
However, the couple point out that there are other current members of the Royal Family who have full-time jobs.
Princess Beatrice and Princess Eugenie, for example, are not "members of royalty."
That means they do not carry out official public duties as members of the Royal Family.
Princess Beatrice works in finance, while Princess Eugenia is the director of an art gallery.
However, the taxpayer still covers some costs for both, such as security for Princess Eugenia's wedding in 2018.
According to David McClure, author of a book on royal finance, how Harry and Meghan will finance each other in the future will be up for debate.
"I suppose they could get money writing books, a more likely source is television. It is said that Harry and Meghan made a deal with Oprah Winfrey, so that would be a possible way to make money," he told the BBC.
What is the Crown Estate?
- An independent commercial property business and one of the largest property portfolios in the UK.
- Most of the assets are in London, but the estate also includes properties in Scotland, Wales and Northern Ireland.
- The holdings include Windsor Great Park and Ascot Racecourse, but the majority are residential and commercial properties.
- The estate is managed by an independent organization and any profit paid to the Treasury (UK Ministry of the Economy and Finance) goes to the benefit of all taxpayers in the country.
- It funds the Sovereign Grant, which pays for the official royal duties and maintains the royal palaces.
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What could be the couple's next steps?
In their announcement, the couple said that one of their future priorities would be to launch a new charity.
In June they decided to leave the Royal Foundation, which they shared with the Duke and Duchess of Cambridge.
The Royal Foundation, created in 2009, focuses on causes such as the military, conservation and mental health.
The couple also patented the Royal Sussex brand, applying it to dozens of items and services, from pencil cases to sports activities and educational training.
As one of the most famous couples in the world, your brand has the potential to be very lucrative.
