As soon as actress Meghan Markle accepted Prince Harry’s marriage proposal in December, it was announced by Kensington Palace that the Suits star would become a British citizen in order to be “compliant with immigration requirements at all times.”
Prince Harry’s communications secretary, Jason Knauf also said, “She intends to become a UK citizen and will go through the process of that, which some of you may know takes a number of years. She will retain her US citizenship through that process.”
While she goes through the process which is expected to take about three years, paying American income tax becomes an issue which will throw a wrench in the works when it comes to sharing Harry’s royal wealth.
The couple has not yet said if, in the end, Markle will take dual nationality or let go of her American citizenship.
When Princess Diana died, Prince Harry got half of her £21.5million estate and currently shares a £3.5million annual allowance with the Duke and Duchess of Cambridge.
Most feel that it is unlikely Markle will receive any of her husband’s or his family’s money because if she did she would have to pay income tax to the US Internal Revenue Service.
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Royal expert Marlene Koenig says, “Even when married to a member of the British royal family, as long as she remains a US citizen she will have to pay income tax. If she has investments in the United States, say for example a retirement plan that she set up, if that’s making money, she would have to pay up.”
Koenig added, “This is even on money earned outside the United States. If she receives money from her husband or his family, and that’s considered income, she would have to pay income tax on that.”
If Markle has more than £221,529 worth of assets in any tax year she will have to file a Form 8938 stating the amount which can include foreign trusts as well as details of the royal family’s estate.
It is likely she will have to do so as she made £36,920 for each episode of Suits and has an estimated net worth of approximately £3.7million.
Koenig says, “Prince Harry receives no public funding. But it is possible there may be other family trusts that he receives money from–we don’t know officially if the Queen has set up trusts for her grandchildren–it is possible. It’s the same thing with some of the Queen Mother’s money, there were rumors that there were different trusts set up, but that’s not public information.
“With that sort of money, if Meghan’s name is on that account, most likely she would be dinged–that would have to be reported as income in the United States. You can be sure that those at Buckingham Palace and those who run the accounts are looking very carefully at all of this to make sure that the royal family’s money does not get reported to the IRS!” She went on to say.