© Getty Images

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.

© Getty Images

Balmoral Castle - Located in Scotland, Balmoral Castle is the residence of the royal family, and is where Queen Elizabeth II used to spend her summers.

© Shutterstock

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

© Shutterstock

Savoy Chapel -

Another property that provides income to the royal family is Savoy Chapel (also known as the King’s Chapel), nestled between buildings in central London.

© Shutterstock

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.

© Getty Images

Inheritance -

The monarch’s private wealth includes properties passed down through generations, originally purchased by Queen Victoria in the 1800s. This private wealth remains with the king or queen regardless of their role as monarch.

© Getty Images

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.

© Shutterstock 

Duchies -

A duchy (also known as a dukedom) is essentially a property that also provides private income to the royal family. More specifically, the Duchy of Lancaster is an ancestral estate that has provided the monarch with income.

© Getty Images

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.

© Getty Images

The Duchy of Cornwall -

The Duchy of Cornwall, which covers 130,000 acres, is another estate that brings in significant income through castles, cottages, and even a cricket stadium.

© Getty Images

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.

© Getty Images

The Crown -

The King’s income from the Duchy of Lancaster is tied to his role as monarch. If he were to abdicate, he would lose this income. As such, it isn’t an entirely private estate.

© Getty Images

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.

© Getty Images

The Crown Estate -

The Crown Estate includes iconic landmarks like Buckingham Palace, Windsor Castle, and the Tower of London.

© Getty Images

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.

© Getty Images

The 18th-century origins -

In the 18th century, the British monarchy had a long line of German kings, from George I to George IV. Many of them wasted their money frivolously, resulting in financial mismanagement.

© Public Domain

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.

© Getty Images

The Sovereign Grant -

The income that is generated from the Crown Estate is known as the Sovereign Grant, which is funded by taxpayers and supports the monarchy’s official duties. Annually, the grant amounts to approximately US$104.4 million (£80 million).

© Shutterstock

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.

© Getty Images

Monarchical duties -

Money from the Sovereign Grant doesn’t go directly into the private pocket of the King. Instead, it’s supposed to provide the monarch with the monetary resources to perform his duties, including to travel, pay for staff, and maintain royal residences.

© Getty Images

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.

© Getty Images

The Windsor Castle fire -

The fire in Windsor Castle raged for 15 hours and required 1.5 million gallons (5.7 million liters) of water to put out. It was then learned that the castle did not have fire insurance.

© Getty Images

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.

© Getty Images

Persistent debate -

Public scrutiny of royal finances remains intense, particularly when Sovereign Grant reports reveal large sums allocated for royal properties, such as the US$3 million (£2.5 million) spent to refurbish Harry and Meghan’s residence, Frogmore Cottage.

© Getty Images

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.

© Getty Images

The royal brand -

Truthfully, the royal family doesn’t actually have a lot of formal power, and instead rely on a carefully curated image and brand. The royal family’s brand is among the most valuable in Britain, which helps maintain the monarchy’s relevance.

© Getty Images

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.

© Getty Images

Stepping back -

By stepping back from their royal duties, Harry and Meghan gave up access to the Sovereign Grant and its associated privileges. Instead, they took only their private wealth with them, along with the continued income generated from the Duchy of Cornwall.

© Getty Images

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.

© NL Beeld

Capitalizing on royal status -

Harry and Meghan’s involvement in projects with companies like Disney and interviews with Oprah raised alarms that they might be leveraging their royal connections for personal gain, a controversial move that is still debated to this day.

Sources: (Vox) (The Royal Family) (BBC) (Investopedia) (The Guardian) (Al Jazeera) (Time) (UK Parliament) (Duchy of Lancaster) (Duchy of Cornwall)

See also: Fashion rules the royal family must obey

© Getty Images