Prince Harry and Meghan Markle are now in the United States after they officially stepped back as senior members of the royal family on March 31. However, things may be different for the Duke of Sussex as he is not a U.S. citizen like his wife and son, Archie Harrison Mountbatten-Windsor. This may affect the sixth in line to the throne's financial situation if they plan to stay in the U.S. for a long while. So, how can the prince avoid paying huge taxes in the U.S.?
According to Town & Country, if Prince Harry lives in the U.S. for too long, he has to pay up for the country's taxes. Whether a U.S. resident or not, the number of days he spends there plays a crucial role in the tax that he has to pay.
Dianne Mehany, a lawyer who specializes in international tax planning, advised Prince Harry to make sure that he would not spend more than 121 days in one year in the U.S. to avoid taxes. However, Henry Bubel, another lawyer who works with "wealthy and cross-border families," revealed there is another way that they could change that number.
"If he's able to show that he has a closer connection with England, then he could stay more days under the U.S.-UK tax treaty," Bubel explained. If Prince Harry manages to prove this, he can stay for as long as 150 days in the U.S. a year.
Prince Harry can also pursue a "tiebreak position" under the U.S.-U.K. treat, which allows someone who accidentally becomes a resident or stays in the country more the number of days they could, to avoid the nation's income taxes. But, there's a catch if he does this. Although he can avoid paying taxes, he still has to file loads of paperwork and disclosures.
Despite Prince Harry and Meghan Markle's move to the U.S., The Times noted that he might never opt for a permanent residency and citizenship, which he is both eligible for, given that his wife is a U.S. citizen. "The Duke has not made an application for dual citizenship, and I don't think he will apply for a green card at any point," the source said.
As a husband of a U.S. citizen like Meghan Markle, this can help Prince Harry to be a permanent resident of the country without breaking a sweat. However, their plans to launch themselves in the U.S. is said to be on hold due to the coronavirus outbreak.
