How the British Royal Family Makes its Money

The British Royal family, headed by Queen Elizabeth II, who ascended into the throne 68 years ago is not as wealthy as the popular belief holds. The queen, as estimated in 2019, has a net worth of 370 million Euros, funded by grants from taxpayers, the Duchy of Lancaster land trust, estates and artwork inherited from her father. In the UK, according to a Telegraph analysis, she is the 365th richest citizen. Other members of the royal family combined have a shared fortune worth 25 million Euros. Here, we tell you how the British royal family makes money.

Sovereign Grant

Each year, the queen is entitled to a certain amount of money handed by the treasury from the taxpayer money. This grant is given in exchange for all profits garnered from the queen’s crown estate, which comprises of a large portfolio of property. Queen Elizabeth gets a 25 percent share equivalent to the surplus revenue benefits the crown estate makes. Although by virtual, the British emperor owns the crown estate, it is fully managed by an independent body. In 2019, the royal family received a grant worth 82 million Euros. It is an annual stipend given to cater to all travels of the members of the royal family, utilities, the palace employee payroll and monarchy upkeep.

Royal Duchies

The British Monarchy also makes money through the Duchies of Cornwall and Lancaster, two massive real estate portfolios. The property is comprised of commercial real estate, a cricket stadium located in London and popular tourist attractions known as the Castle Ruins. In only 2019, the portfolio made profits worth 20 million Euros. Money coming in from the Cornwall portfolio goes to Prince Charles, while that from the Duchy of Lancaster belongs to the queen.

Pieces within the Crown Jewels and the Royal Collection do not belong to the queen but are under her possession as she serves the sovereign role. It means that she cannot sell the official royal residences but can pass them down to her successor.

Privy Purse

This is money earned from the queen’s private income sources within the Duchy of Lancaster and other assets belonging to the monarchy for many years. This includes an 18,481-hectare piece of land in Wales and England. The assets are worth 546 million Euros, money earned from agricultural, residential and commercial properties.

In 2019, the privy purse brought in 20 million Euros, money that was used to cover costs not catered for by the grant. Money from privy purse is used to cater for the expenses of other members of the monarchy. Given that the queen also owns an expensive art collection, Sandringham and Balmoral estates, her actual networth can be hard to estimate. She is said to own valuable assets that have not been available to the public.

Income from the Duchy of Cornwall

Owned by Prince Charles, these properties whose total value amounts to 923 million Euros cover all his expenses, including those of his heirs. In that case, William, Kate, Harry and Meghan, as well as their children, are also covered. In 2019, they were given 5 million Euros by the Prince. Although Meghan and Harry denounced their royal titles and broken rules that come with the taxpayer money, they may still get their private inheritance and an annual income from the Duchies. However, it is not clear whether they will continue to receive subsidies from the prince of Wales.

Meghan Markel has her own wealth, gathered when she was an influencer and actress before joining the monarchy. Harry and William also inherited wealth from Princess Diana and the Queen Mother. While Harry is said to have a networth of 34 million Euros, Meghan has been reported to be worth 4 million Euros.

On the other hand, the Duke of Edinburgh is entitled to an annual parliamentary annuity of about 359,000 Euros. Although in the past other royal family members received parliamentary annuity funding, the sovereign grant act of 2011 abolished the rule.

While many assume that the British Monarchy costs the UK a fortune, it actually isn’t the case. According to the royal family website, the monarchy has, for many years, been labelled as an expensive institution with secrecy. The truth is, although the monarchy receives public funding, the money is spent wisely, making the finances transparent, as noted on the website. The monarchy receives other funds from different sources and releases the figures each year to the public. For details of most distinguished royals, the Royal Vegas casino has a lot to offer.