How do the British royal family make their money?

The British royal family is undoubtedly one of the wealthiest families in the world, but how do they make their millions?

The net worth of the British royal family has consistently been a subject of great intrigue and fascination. And with King Charles’ coronation right around the corner, this curiosity has only grown.

So just how do the royal family make money, and how much is the new King worth?

How Does the British Royal Family Make Money?

The total private wealth of the royal family is generated primarily through inheritance and both the Duchy of Cornwall and the Duchy of Lancaster.

The Duchy of Lancaster is reserved for the reigning monarch, with King Charles taking ownership of the portfolio after the death of his mother, Queen Elizabeth II, in September 2022.

The Duchy of Lancaster comprises 45,550 acres of land and commercial real estate that is valued at $1.2 billion AUD (£652 million GBP), with the late Queen receiving a private income of $38 million AUD (£21 million GBP) from the Duchy of Lancaster last year.

The Duchy of Cornwall is managed by the heir to the throne, with Prince William currently in charge of ensuring that the revenue from the Duchies $1.9 billion AUD (£1.04 billion GBP) commercial and private real estate portfolio is reinvested in a way that is sustainable and financially viable for the surrounding communities.

Prior to stepping back as senior working royals, Prince Harry and Meghan Markle received 95 per cent of their total income from the Duchy of Cornwall, with the other 5 per cent stemming from the Sovereign Grant according to Sussex Royal.

The Sovereign Grant does not directly contribute to the private wealth of the royal family as its primary purpose is funding the day-to-day expenses required for the royal family to fulfil their duties, such as staff salaries, travel expenses, and property maintenance.

The Sovereign Grant is tax-payer funded and is paid annually to the royal family by the UK Treasury, with the Grant for the 2022-23 financial year totalling $159 million AUD (£86.3 million GBP).

The method through which the royal family make their millions has become the subject of great scrutiny in recent years, with both the Duchy of Lancaster and the Duchy of Cornwall being exempt from paying capital gains tax.

This scrutiny has been further amplified due to the Sovereign Grant payment increasing payments by 10 per cent to account for the renovations of Buckingham Palace, with King Charles and Queen Camilla not being expected to move in until late 2027.

The payment boost contributes $65.5 million AUD (£34.5 million) to the total of the Sovereign Grant, with the Core Grant for 2022-23 totalling $98.4 million AUD (£51.8 million.)

What is King Charles’ Net Worth?

In the lead-up to the coronation, The Times has uncovered that the new King has a net worth of approximately $1.1 billion AUD (£600 million GBP).

This figure is almost double Charles’ late mother’s estimated net worth of $684 million AUD (£370 million GBP).

King Charles’ exponential net worth can largely be attributed to the income he received in the 53 years he spent managing the Duchy of Cornwall, with its income totalling over $1.12 billion AUD (£612 million GBP) from 1952 to 2022 according to The Guardian.

Prior to taking the throne, King Charles received a salary of $24.3 million AUD (£12.8 million) from the Duchy of Cornwall for the 2022-23 financial year.

King Charles’ income will continue to stem from several different streams however, as monarch, he will primarily receive his income from the Duchy of Lancaster.

What is Prince William’s Salary?

The 2023 Duchy of Cornwall Integrated Annual Report listed Prince William’s private income as $11.4 million AUD (£6 million).

Following the passing of his grandmother, Queen Elizabeth II, the Prince of Wales inherited the Duchy of Cornwall as heir to the throne.

The Duchy encompasses over 52,000 hectares of land across southern England, including a variety of valuable private and commercial property assets, protected woodland, coastlines, and commercial farms.

The Duchy of Cornwall recorded a net profit of $45.9 million AUD (£24 million) for the 2022-23 financial year.

Prince William is granted access to the revenue of the Duchy, with the Prince of Wales then using this income to fund the private, public, and charitable events for both him and his immediate family.

How Much is the Royal Family Worth?

According to Forbes, the overall total net worth of the royal family is approximately $41 billion AUD (£22 billion GBP).

This wealth is held primarily in the royal family’s property assets, with $28.7 billion AUD (£15.6 billion GBP) being managed by the royal’s statutory corporation known as the Crown Estate.

Both Prince Harry’s and Prince William’s net worth is largely comprised of a $14 million AUD (£7.5 million GBP) lump sum payment they each received as an inheritance from their late mother, Princess Diana, with Forbes reporting that both Prince’s received $670,000 (£363,000 GBP) annually in dividends once they turned 25.

The new Queen is reported to have a comparatively modest net worth, with Express reporting Camilla’s net worth to be approximately $6.6 million AUD (£3.6 million GBP).