This will be one of the most interesting tax residency problems in the modern world. Tax residency is usually different from immigration status. What should Harry do? https://t.co/CvlcbbGJxC pic.twitter.com/Xbh49A74e0
— U.S. Citizen Abroad (@USCitizenAbroad) January 9, 2020
It appears that Meghan, Harry (and Archie) are moving in a new direction. This includes creating a new life (where they become financially independent and cease the day-to-day activities of assuming the responsibilities of being “Senior Royals”).
The family has released a new website to discuss their plans.
The most interesting part of the announcement is that they will spend significant time in North America (Canada and/or the United States). Along with this decision comes the question of “tax residency”. Along with the question of “tax residency” comes the question of taxation of foreign income and the reporting of foreign assets.
All indications are that Meghan plans to remain a U.S. citizen and that Archie (whether by accident or design) will be treated as a U.S. citizen. This leaves Harry. At present (as far as I know) he is a British citizen.
In light of all of this, should the family become tax residents of Canada, the United States or even both?
Will they remain tax residents of Britain?
Should Meghan live in Canada (U.S. property temporarily staying in Canada)?
Should Harry count the number of days he spends out of the USA to avoid becoming a U.S. tax resident?
Will somebody convince Harry that he should get a Green Card?
Might Harry conceivably eventually become a U.S. citizen?
Will the Royal family become Canadian citizens?
Will Canada be designated as a tax haven by the OECD?
The plot thickens.
All of this and more.