Meghan Markle and Prince Harry left Canada in favour of California so they didn't have to pay tax in two countries, according to reports.
Yesterday it was reported that the royal couple fled Vancouver Island in a private jet so they could be closer to Meghan's mum Doria in Los Angeles (and future business opportunities) as borders close due to the coronavirus pandemic.
It seems that wasn't the only reason.
The Sun reports Harry and Meghan intended to live in Canada, but their initial plan to remain in a Commonwealth country "very quickly fell apart".
"They were told getting work visas in Canada would be difficult and because Meghan remains a US citizen – so is taxed on her worldwide income – she would end up paying in the US and Canada," a source says.
"Then the Canadian government made it clear they would not contribute to their security costs so it made much more sense to live in Hollywood and only pay US tax."
Meghan would reportedly have to report self-employment income from any sponsored social media posts or merchandise sold, while also paying a 15.3 per cent levy to cover taxes on social security and medicare.
She would also have had to meet disclosure requirements to the US Internal Revenue Service on any foreign bank accounts, the Sun reports.
The couple's plans to develop a billion-pound business was allegedly foiled by the tax situation, as Meghan would have only been able to exclude around £90,000 a year from tax.
Yesterday it emerged that Harry and Meghan and baby Archie have permanently fled Vancouver Island and moved to Los Angeles as borders closed amid the coronavirus crisis.
A source claims the couple's dramatic move has "stunned and horrified" other members of the Royal Family, who are said to have been under the impression the couple would consider a return to Britain amid the pandemic.
Disney has announced Meghan will narrate its upcoming documentary 'Elephant', her first job since announcing she and her husband would be stepping down as senior royals.
- Meghan Markle
- Prince Harry
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