Harry ‘risks huge tax bill if he stays in US mansion’
PRINCE HARRY could face a ‘monumental’ tax bill unless he takes a break from his £11million Californian mansion next month, according to experts.
The Prince moved to Los Angeles with wife Meghan and baby Archie in early May, with the first reports that they were living at a Beverly Hills mansion owned by TV producer Tyler Perry coming 151 days ago.
But if Harry, 36, spends 183 days in the US in any three years, he is considered a resident for tax purposes and could be legally liable to pay both US federal and Californian state taxes on worldwide earnings.
Top LA tax lawyer David Holtz said last night: ‘You can safely assume that someone at the Internal Revenue Service [IRS] is looking very closely at him. This is a big deal.’
Another tax expert said: ‘Harry’s bill could be monumental and could open up a can of worms for the Royal Family as the IRS will want to know all of his sources of income. That’s not just his Netflix deal, but every penny he might have received in gifts from
Prince Charles and any trust funds set up after the death of Princess Diana, savings accounts or other assets. That means the Royal books will be open to scrutiny. The US taxman is far more zealous than his UK counterpart.’
Harry and Meghan, below, have signed a multi-year deal with Netflix, with some reports saying it is worth total of £115million, although The Mail on Sunday understands that it is worth closer to £4million a year.
The couple also reportedly earned $1million (£770,000) for a speech at an event for bank JP Morgan in February.
The Sussexes, who are estimated to have a joint fortune of £20 million, now live in a mansion in Montecito, California, bought through a company registered to the address of Meghan’s business manager Andrew Meyer.
Mr Holtz said: ‘If Harry’s been in the US for 183 days straight then he’s done.
‘But it is safe to assume they have had lawyers and tax experts grinding away on this for months.’
A key factor is the type of visa on which Harry entered the US. If it is a diplomatic visa, he is exempt, but if it was a O-1 visa for people with ‘extraordinary abilities’, then he will be liable for the same taxes in the US as everyone else.
Meanwhile, Harry last night sent a message of support for those taking part in today’s London Marathon, where elite athletes will compete on a course while 45,000 other runners will compete ‘virtually’ on a course of their choice.