Town & Country, Meghan Markle and Prince Harry's New Roles Could Impact Meghan's Immigration Status—and Their Taxes:
Now that Meghan and Harry intend to retreat from their royal roles, attain "financial independence," and live part-time in North America, Meghan and Archie's tax and citizenship plans are a little up in the air. ...
Meghan is still a US citizen, and therefore required to pay US taxes on her worldwide income. Prince Harry could technically elect to be treated as a US taxpayer and file jointly with Meghan, but "he would never do that," explains Dianne Mehany, a lawyer specializing in international tax planning." ...
When Meghan and Harry announced their engagement back in 2017, Harry's communications team confirmed to the BBC that Meghan "intends to become a UK citizen and will go through the process of that." Said process, as per the UK government's website, would require Meghan to have lived in the country for three years before becoming eligible for naturalization.
Once gaining UK citizenship, Meghan could elect to relinquish her US citizenship, and save herself the trouble and expense of filing US tax returns. "The only problem there is, she would have to pay the exit tax," Mehany notes, referencing the expatriation tax that those forfeiting US citizenship are subject to. ...
"The real tricky thing," Mehany notes, "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."
Dan Mitchell (Cato Institute), Taxes Will Be a Royal Pain for Meghan and Harry:
As reported by the U.K.-based Telegraph, they’re minimizing their exposure to the rapacious California tax system:
January 21, 2020 in Tax, Tax News | Permalink
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