Former Duke and Duchess of Sussex Prince Harry and Meghan Markle could face a high tax status by U.S. tax authorities, as the former royal couple targets financial independence.

Prince Harry and Meghan Markle
(Photo : Reutersconnect)

Harry and Meghan's decision to step down as senior royal couple early this year has surprised people around the world, especially those who have been following their fairy-tale love story.

Now that they are no longer part of the royal family, they will live like ordinary citizens and will also lose many privileges. They have to work and pay taxes now.

Experts claimed that Harry and Meghan's new lifestyle in California is likely to cost several million in bills, security, and tax a year.

The report came after the former Duke and Duchess of Sussex bought a nine-bedroom mansion with a pool, gym, and spa in Montecito, Santa Barbara County.

According to a published report in The Guardian, the mansion is worth $14.7 million. A financial record suggests that the couple took out a mortgage of $9.2 million. Thus, they need to pay an amount of $37,500 every month for 30 years.

Experts said Harry may see a new drain on his income from U.S. tax authorities as the cost of their lives grows.

According to royal author David McClure, California is a high tax state, and Harry is 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," he said.

McClure also explained that "the more their expenditure rises in California, the greater the pressure to generate their income in more downmarket, commercial deals."

"That's always been the worry of the Palace," he added.

Now that they are no longer part of the royal family, the couple will have to declare all their income. They will also have to pay tax on any income they generate and the fees for their staff and security. 

Aside from that, Harry and Meghan will also have to make monthly payments for their U.K. residence owned by the Crown Estate.

Recently, Harry and Meghan both signed to public speaking agency HWA. It was the same agency that the Obamas and the Clintons signed on. 

Harry also gave a talk for bankers from JP Morgan's conference at Miami in February after CBS host Gayle King first introduced Meghan to the stage.

"The U.S. tax man is much more zealous than his U.K. counterpart. For that reason, Harry will have to watch his step on the income he generates," McClure told a news outlet. He added that the U.S. tax authorities require more information than Britain.

Another author Ingrid Seward said she couldn't see how Harry and Meghan can earn any money, most notably in this time of the global pandemic, wherein speaking engagements were canceled. 

In fact, she said she also has a speaking engagement, but it was canceled because of the pandemic.

"It was announced ages ago that he was doing a series for Oprah Winfrey for Apple T.V., and I can't imagine he would be doing that for nothing," Seward said.

"It was signed up over a year and a half ago. I would have thought that Harry might have some potential earnings there but I can't think of anything else," she added. 

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