How the British royal family makes money

Royal real estate

The Royal family’s wealth is closely tied to real estate, which is scattered all across the United Kingdom. These properties, such as Balmoral Castle and Windsor Castle, have differing ownership structures.

Windsor Castle

Windsor Castle is another source of income, located just outside of London. Foreign leaders are often hosted here by the monarch.

Three portfolios

These three properties each represent three different ways in which the royal family makes their fortune, namely through inheritance, duchies, or the Crown Estate.

Continued ownership

Although these properties were once owned by Queen Elizabeth II, they were passed down to King Charles III upon her death. Even if Charles were to abdicate his throne, these inherited properties would remain his. They include Sandringham House (pictured) and Balmoral Castle.

The Duchy of Lancaster

The Duchy of Lancaster is incredibly old and ancestral, dating back to the 14th century. This estate includes a vast portfolio of properties (such as Lancaster Castle, pictured, and Bolingbroke Castle), many of which are highly profitable commercial ventures.

Rising profitability

Every year, both the Duchy of Lancaster and Cornwall generate over US$26 million (£20 million) each. As the heir to the throne, Prince William receives sole income from the Duchy of Cornwall, while some of the income supports the charitable and private activities of his wife and three children.

Modest wealth

Despite a personal fortune of around US$772 million (£610 million), the King is not among the world’s richest individuals. The royal family's wealth is often exaggerated due to the third way in which they earn an income: the Crown Estate.

Seabed

The seabed around the United Kingdom is also included in the portfolio. But despite being worth billions, the Crown Estate doesn’t directly contribute to the King’s wealth due to historical agreements that govern its ownership.

Letting go

In order to circumvent financial ruin, George III (1738–1820) relinquished private ownership of Crown lands in exchange for a taxpayer-funded income. This deal laid the foundation for the royal family’s current financial arrangement with the government.

Harry and Meghan

In 2019, Harry and Meghan received only 5% of their income from the Sovereign Grant before stepping back from royal duties. The remaining 95% of their income came from the Duchy of Cornwall, which primarily supported their former royal activities.

Controversy

The public has long debated the role of taxpayer funding in supporting the monarchy. This debate became even more controversial after a fire broke out in Windsor Castle in 1992.

Taxpayers

After the disaster, taxpayers heavily debated as to whether they should be required to fund the repairs of the castle, especially since it was the private residence of the Queen. Public discontent over using government money for royal expenses grew, leading to ongoing controversy about royal funding.

Public support

Despite criticism, the monarchy’s global appeal and ability to attract tourists are often used as justifications to continue public funding. Whether it’s baby announcements, weddings, or scandals, news of the royal family is broadcast around the world.

Constraints

Working royals must follow strict guidelines that limit private income opportunities. Royals are prohibited from cashing in on their status and must focus on diplomatic and charitable duties to preserve the monarchy’s integrity.

Personal wealth

Before joining the royal family, Meghan Markle had a successful acting career, primarily on the TV show ‘Suits.’ Combined with Harry’s inheritance from Princess Diana, the couple already had significant private wealth before leaving royal life.