When Meghan, Duchess of Sussex and Prince Harry decided that life as senior members of the British royal family was no longer going to work for them, they didn’t simply snap their figures and change their whole lives.
Instead, Prince Harry went into long-in-depth discussions with his family about the life that he envisions for himself, Markle and their infant son, Archie Harrison. Though Buckingham Palace has announced that the Sussexes will officially be non-working royals as of April 1 — the logistics are already a headache.
From citizenships to tax information and even figuring out how they will be financially independent without the use of their brand name, Sussex Royal, there is a lot to figure out. This also opens up questions about Prince Harry’s citizenship.
Meghan Markle never became a U.K. citizen
Meghan, Duchess of Sussex applied for British citizenship when she and the duke first became engaged in late 2017. However, that was never finalized.
“Meghan is not yet a British citizen,” an insider told Daily Mail. “It might seem extraordinary, given that she’s been married to the Queen’s grandson for 18 months, but she accepts that it’s a slow process.”
Now it appears that duchess didn’t push because knew that being in the U.K. full time was ever going to work for her. In November 2019, An insider told The Sun, “There’s an acceptance that things haven’t worked out with the Sussexes full-time in Windsor so they could have a second base in America.”
Now that the duo is splitting their time between the U.K. and North America, it might not be necessary for the duchess to take on U.K. citizenship.
Meghan Markle and Prince Harry’s marriage is a financial nightmare
Though they have a combined net worth of $30 million and they are hoping to make more with Megxit — the Sussexes’ taxes are only going to get more complicated.
Markle is still a U.S. citizen so she pays U.S. taxes. Prince Harry already pays the U.K. taxes on the £10million and £7milllion inheritances he received from his late mother, Princess Diana, and the Queen Mother, respectively. However, he could be required to give the U.S. a chunk as well. Likewise, the yearly allowance he receives from Queen Elizabeth II and his father, Prince Charles, is likely to be taxed.
The Sussexes have hired U.S. tax experts to help them sort this mess out. Now that they are living on Vancouver Island, Canada might want to be in on the tax action too.
Prince Harry will never be a U.S. citizen
It looks like Markle will retain her U.S. citizenship, Prince Harry will retain his U.K. citizenship with Baby Archie having dual citizenship. However, Prince Harry will be changing his status in one major way.
“[Prince Harry] will likely become a resident of Canada and a nonresident domiciliary of the United Kingdom,” International tax planning lawyer Dianne Mehany told Town & Country. “At which point he would pay less tax in the UK and he would remit residence-based tax to Canada first.”
Mehany also revealed that it’s unlikely the couple will live in the United States for an extended period of time. She explained. “The real tricky thing is to make sure they don’t spend too much time in the United States, so that Harry becomes a resident of the United States, at which point his entire worldwide wealth would become subject to US taxation, which I know they want to avoid.”