How the British royal family makes money
Is the British royal family wealthy? Oh, yes! You may think that is why it is called “royal”. But in fact, how does the royal family afford all their homes, transportation, weddings, jet-setting, and the lifestyle like the riches people in the world do?
The answer to this question lies back in history. Well-known royal real estate brings the royal family the biggest share of the income. If you check the map of royal properties in the United Kingdom, you will be surprised to see what a number of properties the royal family owns. For example, those include Balmoral Castle in Scotland, the Savoy chapel in central London, Windsor Castle outside of London where the Queen often hosts foreign guests. And each of them represents a different way the royal family makes their money.
1. Inheritance
Like Balmoral castle which is the Queen’s private wealth and even when she leaves the throne, such property will still belong to her. In the 1800s, Queen Victoria bought those castles, and they have been passed down through generations.
2. Duchies
The Duchy of Lancaster is an old estate dating back to the 14th century. Although that portfolio of property includes historic sites and land, it provides a private income for the Queen. Pontefract Castle, Bolingbroke Castle, and Ogmore Castle are on that list. Except for those, the most profitable is the Savoy Chapel, mentioned before. It is interesting to know that, in 2019, each of the duchies made a profit of over 20 million pounds.
3. Crown Estate
The Crown Estate implies iconic landmarks such as Windsor Castle, Buckingham Palace, the Tower of London. However, it does not completely belong to the Crown. Called the Sovereign Grant, in other words, it is taxpayer money that is paid for the royal family’s lifestyle.
There are still debates whether taxpayers should or should not pay for Buckingham Palace as it is considered the Queen’s house. For instance, in 2018 it was revealed that the new home of Prince Harry (that time) and Meghan Markle cost UK citizens nearly 2.5 million pounds to refurbish. Yet, if you think about how many tourists visit the United Kingdom only for the royal family, you may find the royal family a really successful brand. So maybe it is worth it?
