Prince Harry, 35, and Meghan Markle,38, have bought and settled into a $14.6 million dollar mansion in Santa Barbara, California. The couple are expected to raise their son Archie Harrison, one, in the upscale neighbourhood of Montecito, home to a host of famous faces including Oprah Winfrey and Kevin Costner.
Harry and Meghan relocated to the US after stepping down as senior royals in March and are expected to remain there for the foreseeable future.
However, the British Prince could face a paying a huge tax bill to US authorities once he’s been living in the States for more than 183 days over a three-year period, an expert has claimed.
Financial expert and author of the forthcoming book The Queen’s True Worth, David McClure told the Telegraph: “California is a high tax state and he’s likely to get a hit.
“I don’t think Harry and Meghan have totally thought through the financial consequences of their exit from the Royal Family.”
“The more their expenditure rises in California, the greater the pressure to generate their own income in more downmarket, commercial deals.
“That’s always been the worry of the palace.”
According to Mr McClure, Harry will be asked to disclose far more details about his source of income to the US authorities, than he would have based in Britain.
Mr McClure added: The US taxman is much more zealous than his UK counterpart and for that reason, Harry will have to watch his step on the income he generates.”
What is Meghan Markle and Prince Harry’s combined net worth?
Meghan and Harry’s joint net worth is estimated to be £16 million to £20 million.
Meghan Markle was a millionaire in her own right before she met Prince Harry from the money she earned as an actress in sitcom Suits.
Prince Harry inherited several million left to him by his late mother Princess Diana.
The couple’s estimated annual outgoings are said to be around £5 million – a combination of property, mortgage repayments, staff, security and the £18,000 they are repaying to the British taxpayer to cover the renovations of their UK home Frogmore Cottage.
While Prince Harry may have planned to settle in the States for good, he is not expected to become a naturalised US citizen.
Applying for a green card or US citizenship could mean having to relinquish his royal titles.
Becoming a US citizen could also make him liable for tax on worldwide income – including the money he receives from UK-based trusts.