Daily Mail reported that Prince Harry's current visa status in the United States may be serving the financial interests of the British Royal Family.
Tax experts suggest that the Duke of Sussex might be on a diplomatic visa, which could shield certain aspects of royal finances from U.S. government scrutiny.
The speculation arises amid growing interest in Prince Harry's immigration status since his move to the United States in 2020. While the exact nature of his visa remains undisclosed, experts point to the possibility of him holding an A-1 Head of State visa, a rare classification typically reserved for royalty and heads of state.
International tax expert Clayton Cartwright suggests that the Royal Family may prefer Prince Harry to remain on a diplomatic visa indefinitely.
This arrangement would allow him to reside in the U.S. without triggering the extensive financial disclosures required of permanent residents or citizens.
If Prince Harry were to obtain a green card or U.S. citizenship, he would be obligated to report his worldwide income to the Internal Revenue Service (IRS). This could potentially expose sensitive financial information about the Royal Family, including details of joint accounts or trusts.
Cartwright explains the potential implications:
The Royal Family probably doesn't want that to happen. Doubtless they're saying spare him from a green card, that's a tax dagger in the heart of the Royal Family. All that entanglement that probably exists between the Royal Family and his finances would be subject to disclosure. If you said you weren't going to disclose it because its the Royal Family there would be huge blowback.
The timing of this discussion is particularly relevant as Prince Harry is reportedly set to receive a substantial payout from a trust established by his great-grandmother, the late Queen Mother, on his upcoming 40th birthday. If he remains on a diplomatic visa, this windfall would be taxed under the U.K. system rather than being subject to U.S. taxation.
However, the financial implications could be significant if Prince Harry transitions to a green card or U.S. citizenship. Not only would he be required to disclose the details of the trust to the IRS, but he would also need to report any U.K. bank accounts under America's Report of Foreign Bank and Financial Accounts (FBAR) law.
Adding to the complexity of the situation is an ongoing Freedom of Information Act case brought by the Heritage Foundation against the Department of Homeland Security. The case seeks to determine Prince Harry's visa status, particularly in light of his admissions of past drug use in his autobiography "Spare."
While the case appears to have stalled, with no public hearings since April, it has fueled further speculation about the nature of Prince Harry's immigration status. Some experts have suggested that he could be on an O-1 visa for individuals with extraordinary abilities, which would likely make him a tax resident in the U.S.
Prince Harry's visa status remains a topic of significant interest, with potential implications for both his personal finances and those of the Royal Family. The choice between maintaining a diplomatic visa or pursuing a permanent residency in the U.S. could have far-reaching consequences for royal financial privacy.
As the Duke approaches his 40th birthday and a potential windfall, the decision becomes increasingly pertinent, balancing personal, financial, and diplomatic considerations in a complex international context.
