WATCH: This is where the British monarchy’s fortune came from
Royal fans alone are not what keeps the royals’ pockets full of gold coins. They also have their own vast wealth, much of it inherited.
Picture: DANIEL LEAL / AFP
They are always stepping out in the latest fashion, dripping in diamonds, they have several castles and properties, thousands of employees and the adoration of a whole country.
For a family who seems like they’re not really doing much, the Royal family has amassed quite a fortune over the years. But you might be wondering how they made their billions, and continue to make even more money year on year.
The British monarchy is sometimes referred to as the firm. It is a family business with the monarch as CEO. Loyal subjects pay a handsome price to be ‘involved’ in their lives and most are more than happy to do so, literally queuing up for the pomp and circumstance at events like this year’s Jubilee celebrations or royal weddings.
To help pay for it all, the British tax payer forked out 86 million pounds for the year 2020 and 2021.
This money covers expenditures from Royal travel and receptions to building maintenance and garden parties.
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But the royal fans alone are not what keeps the royals’ pockets full of gold coins. The Royal Family also has its own vast wealth, much of it inherited. The Royal stamp collection alone is valued at tens of millions of euros.
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Here is a quick breakdown of where the British Royal Family got their fortune from:
The New York Times reports that one of the largest parts of the royal holdings, The Crown Estate, is a 16.5 billion pound portfolio of real estate that includes 8 billion euros worth of retail property in London’s West End, commercial land around the nation and even the British seabed.
The Crown Estate
The Crown Estate generated £327.8 million in operating profit in its most recent fiscal year.
However, it’s important to note that the estate doesn’t belong to the Windsors personally. They surrender all this profit to the government, and in return they receive, what is called, the Sovereign Grant from taxpayers, amounting to 25% of the Crown Estate’s profits.
This money is then used to pay for royal duties and the upkeep of several palaces, the family’s travel and the staff payroll.
The Duchy of Lancaster
The Duchy of Lancaster, a portfolio of land and other assets, valued at 1 billion euros, has been in the royal family for hundreds of years, and reported a 24.6-million-euro profit in 2021.
This property portfolio belongs to the monarch’s heir and will now pass to King Charles III after which it will eventually pass to his eldest son, Prince William.
The Duchy of Lancaster is a 818 million euro holding spread out over Britain, and belongs to the monarch. The portfolio includes residential, commercial and agricultural properties. It reported a 23.3-million-euro operating profit in 2021.
This money is used to pay for expenses incurred by other members of the Royal Family
*Compiled by Xanet Scheepers
