Prince Harry & Meghan Markle's Taxes Could Be A Total Nightmare If They're Not Careful
Relocating ain't easy!
Moving to Canada might not be as easy as it seems, even for the Royal family. As Prince Harry and Meghan Markle's Canada move makes progress, there's been some talk about a potential tax nightmare for the couple. In fact, unless the pair adjust their approach, they could be set to pay taxes in three different countries.
According to The Guardian, the Queen of England has said that both Harry and Meghan despite her wishes for them to stay as full-time working royals.
The move is part of Harry and Meghan's plan to embark on a new, more financially independent journey.
However, the transition is not going to come without difficulties, and one of those is financial.
There is a chance that Harry will have to face a potential "double tax" on any commercial income he may receive if he and Meghan decide to resign from their royal duties and move to Canada, according to Express.co.uk.
But that also means that he'll have a hefty bill for Frogmore Cottage, his home in Windsor. The home had a taxpayer-funded makeover of £2.4 million before the couple moved in, according to the Dailymail.co.uk.
As with all Canadian residents, Accountancydaily.co suggests that in order to avoid that "tax trap," he must either give up his UK residency or simply limit his time in Canada to under the threshold.
For the record, if you spend 183 days or more in Canada, the country requires you to pay income tax in the country on what you earn globally.
That system is also used in the U.K. but the timeframe is half the length at just 90 days. So, in theory, the prince could spend half the year in the Great White North without having to pay a cent here.
For Meghan Markle, meanwhile, as she is still a U.S. citizen, she is required to pay U.S. taxes on her worldwide income, according to Accountancydaily.co.
The only way for Meghan to avoid paying that is if she stays at least half a year longer in the U.K. right now in order to apply for foreign-earned income exclusion on her U.S. taxes.
This would also allow her to take off the income tax she already paid in the U.K., so she wouldn't be subject to the "double tax" like Harry may be.
When it comes to their son Archie, as he is both a U.K. and a U.S. citizen, Meghan could be able to claim him as a dependent on her U.S. tax return.
However, if the royal family has already created accounts and investments under the baby's name, these would also need to be reported and could potentially be subject to tax.
Phew. Did you get all that?
The Sussexes might not care anyway, giventhan they did in the U.K.
For now, news of the popular couple's arrival is certainly exciting for some Canadians. One of those appears to be New York Times., who defended Canada from the notable wrath of the
But some Canadians might not be on board with this whole thing. For one, it sounds like "financially independent" doesn't include.
That's not going to stop us debating every aspect of their new life, though.?
Andin the future with this mixed-residence upbringing? Only time will tell.
For now, though, it turns out being a royal migrant — or trying to be one, at least — is pretty complicated.