Spanish Royal Family Finances

[Harold]

How is the Spanish Royal Family financed? I assume that they receive a salary from the State and that they receive grants to cover the costs of doing their jobs. I would also assume that their homes are owned by the State, too. Is this correct? Do they have independent wealth?

[ANNIE_S]

Yes, it´s correct: Royal Family receives an annual assignment of Gobern, and at the moment it´s E8´2 millions-although it´s more than last year-.They use this money for their personal spendings and their residence maintenance.And the royal residences, as you said, don´t belong to the king, they are State´s property.
But King Juan Carlos also has got his own wealth: he has got personal bussiness.
According to Forbes, he is one of the richest headstates.

[Harold]

Originally Posted by ANNIE_S

King Juan Carlos also has got his own wealth: he has got personal bussiness.
According to Forbes, he is one of the richest headstates.

Really? I thought the Spanish royals were not that wealthy.

[ANNIE_S]

I found this article, but it´s old (from 2003)
And I´m sorry, he isn´t so rich as I said before, he is the sixth richest monarch of Europe-although I think that it´s a very, very good place, he even has got much money ....
IBLNEWS.COM

[Camilo2002]

King Juan Carlos' wealth is a very controversial issue in Spain. Juan Carlos got very very wealthy very fast after becoming King of Spain. A number of sources state that the King's wealth exceeds the billion USD by far.

The problem is that Spain's Constitution makes the King "untouchable" and people willing to investigate the issue can be criminally indicted for trying to defamate the King. Freedom of speech and information is very limited in Spain when it comes to investigate the King's finances.

Controversial "close friends" who allegedly contributed to the King's wealth are Mark Rich (who swiftly received a Spanish passport/citizenship), Kings of Arab Countries, Spanish bankers and other businessmen.

Those of you who understand Spanish can take a look at the following:

YouTube - Como hizo su fortuna Juan Carlos I de España

If this monarchy is expected to last after the King's death there are a few issues that should be clarified.

[Duke of Marmalade]

Originally Posted by donnaK

The budget is not only for personal spending money, money is needed to organize acts, security needs money, thus the SRF can't have as many acts as they want. On the persoanl money, Felipe's grandparents were in exile, except for some jewels, I don't think he inherited any substantial cash or property from them.

I've moved my response to this thread since I dont believe that the spending part is correct. The allowance that JC receives from the State (around 8 Mio. Euros) is for personal use ONLY. The way he choses to spend it is completely out of taxpayers' eyes because everything concerning the SRF's events and way of life, like houses, cars, security, is either picked up by National Patrimony or the State (various ministries).

While its common knowledge that JC is very, very wealthy or at least got it through his connections, we cant say for sure about Felipe but its very likely that he can afford a very high standard of life for himself and his family, not to mention all the freebees and gifts people like royals usually receive for advertisement and promotion, clothes, bags, cars etc.

[AnaC]

Originally Posted by Duke of Marmalade

I've moved my response to this thread since I dont believe that the spending part is correct. The allowance that JC receives from the State (around 8 Mio. Euros) is for personal use ONLY. The way he choses to spend it is completely out of taxpayers' eyes because everything concerning the SRF's events and way of life, like houses, cars, security, is either picked up by National Patrimony or the State (various ministries).

While its common knowledge that JC is very, very wealthy or at least got it through his connections, we cant say for sure about Felipe but its very likely that he can afford a very high standard of life for himself and his family, not to mention all the freebees and gifts people like royals usually receive for advertisement and promotion, clothes, bags, cars etc.

Absolutely not, that's completely wrong:

"By means of this annual sum, H.M. The King’s Household responds to its most direct financial obligations that are not the responsibility of other State bodies. Such obligations include (1): salaries, social security contributions and social provisions for senior management, management and non-civil servant staff for which the Royal Household is responsible; day-to-day operative costs, such as office materials; certain supplies; protocol and representation expenses (e.g., luncheons, dinners and receptions); transport and board and accommodation expenses; the acquisition of miscellaneous materials for the functioning of different offices within the Royal Household, etc"

They don't pay for their security, official vehicles and upkeep of the state-owned palaces:

"Likewise, H.M. The King’s Household is no exception from other Constitutional bodies and Ministries in that its security expenses are met by the Interior Ministry, while those concerning official vehicles and their drivers correspond to the State Transport Service (Ministry of Economy and Finance). La Zarzuela Palace and other Royal Sites are property of the State. Their maintenance and upkeep correspond, by law, to the autonomous agency Patrimonio Nacional (National Heritage). Regarding the management and administration of the annual budget of H.M. The King’s Household, the normal procedures of the State Administration are followed.
Furthermore, regarding labour and taxation matters, the Royal Household is fully subject to current legislation. "

[Duke of Marmalade]

Originally Posted by AnaC

Absolutely not, that's completely wrong:

"By means of this annual sum, H.M. The King’s Household responds to its most direct financial obligations that are not the responsibility of other State bodies. Such obligations include (1): salaries, social security contributions and social provisions for senior management, management and non-civil servant staff for which the Royal Household is responsible; day-to-day operative costs, such as office materials; certain supplies; protocol and representation expenses (e.g., luncheons, dinners and receptions); transport and board and accommodation expenses; the acquisition of miscellaneous materials for the functioning of different offices within the Royal Household, etc"

They don't pay for their security, official vehicles and upkeep of the state-owned palaces:

"Likewise, H.M. The King’s Household is no exception from other Constitutional bodies and Ministries in that its security expenses are met by the Interior Ministry, while those concerning official vehicles and their drivers correspond to the State Transport Service (Ministry of Economy and Finance). La Zarzuela Palace and other Royal Sites are property of the State. Their maintenance and upkeep correspond, by law, to the autonomous agency Patrimonio Nacional (National Heritage). Regarding the management and administration of the annual budget of H.M. The King’s Household, the normal procedures of the State Administration are followed.
Furthermore, regarding labour and taxation matters, the Royal Household is fully subject to current legislation. "

Thanks for pointing out. So JC pays for his household that is further explained on casareal:
The Royal Household of His Majesty the King_ Welcome

Other than that, there is no information on how he distributes the money and what is being done with it and his allowance is not subject to the Court of Auditors. One could think, that JC is rich enough to pay for a treadmill to keep him healthy but still he asked the National Patrimony to pay for the fitness equipment since it was part of Zarzuela maintainance

Patrimonio le compra al Rey una ‘exclusiva’ cinta mecánica por 14.000 euros - elConfidencial.com

[AnaC]

Originally Posted by Duke of Marmalade

Thanks for pointing out. So JC pays for his household that is further explained on casareal:
The Royal Household of His Majesty the King_ Welcome

Other than that, there is no information on how he distributes the money and what is being done with it and his allowance is not subject to the Court of Auditors. One could think, that JC is rich enough to pay for a treadmill to keep him healthy but still he asked the National Patrimony to pay for the fitness equipment since it was part of Zarzuela maintainance

Patrimonio le compra al Rey una ‘exclusiva’ cinta mecánica por 14.000 euros - elConfidencial.com

Yes, he distributes the money however he likes, however :

"As occurs with other Constitutional bodies such as the Congress and the Senate, and in other countries in our context — both monarchies and republics — the overall budget assignation to H.M. The King’s Household is not subject to examination by the Court of Auditors.
Nevertheless, H.M. The King’s Household does have a Comptroller, a career staff member belonging to the Corps of Comptrollers and Auditors of the State Administration, appointed by Royal Decree, who performs his/her tasks in accordance with the general criteria and techniques established by the Comptroller General’s Office."

Did we find out the thruth about the threadmill? I remember a republican deputy was going to ask that question to the goverment at the Congress.
Regarding JC's wealth, while I have no doubt it has increased from what they had at the begining of his reign, it's only speculation, nobody has a real idea.

[Duke of Marmalade]

Spain's royals reveal salaries for first time

Casa de Su Majestad el Rey de España
The Associated Press: Spain's king earns $382,000 a year
AFP: Spain's royals reveal salaries for first time

[lula]

Budget of the House of the King

Casa de Su Majestad el Rey de España

Google Traductor

For the first time they made public how the budget is distributed.

Budget for the year 2011, 8,434,280.00 euros

Royal Family: 814,128 €

HM the King: endowment amounts to 140,519 € and representation expenses 152,233 €

Prince of Asturias: endowment amounts to 70,259 € and representation expenses 76,117 €

Queen, Princess of Asturias and Infantas Elena and Cristina: representation expenses 375,000 €

Personnel expenses: 4,039,000 €
Current expenditure on goods and services: 3,275,000 €
Contingency Fund: 206,152 €
Real investments: 100,000 €.

[Duke of Marmalade]

Juan Carlos Earns $382,000 to Reign in Spain - ABC News

The amount is not bad, most Heads of State or even Heads of Government earn less, but its still within the average range. Its not so high that it could be critizised by the public but it doesnt come cheap, either.

[lula]

Originally Posted by Duke of Marmalade

Juan Carlos Earns $382,000 to Reign in Spain - ABC News

The amount is not bad, most Heads of State or even Heads of Government earn less, but its still within the average range. Its not so high that it could be critizised by the public but it doesnt come cheap, either.

You must deduce 40 % of taxes, so the final amount is greatly reduced.

[Charlotte_Aster]

Let's not forget he doesn't get to retire, either.

[Duke of Marmalade]

Originally Posted by lula

You must deduce 40 % of taxes, so the final amount is greatly reduced.

As far as I know, most of JC's peers pay taxes, there is no difference. JC is on par with Obama's salary of 400.000 USD, who pays taxes too, so not bad at all.

I guess Felipe's salary is pretty low compared to HIS peers.

In a republic, the public only pays for the HoS and not for family members so Felipe's salary and the Letizia/Infanta pool comes on top.

http://www.telegraph.co.uk/news/worl...n-history.html
The article includes a comparison what other RFs get.

[DMR412]

I don't think Denmark's royals pay taxes and they are reimbursed for VAT.

Do the Spanish Royal family have inherited wealth?

[Bine221]

Hm, this really does not sound much to me - especially if you have to pay taxes. So I never ever want to claim again, that Letizia is wearing Zara for daytime fashion -- she simply has to do it to get a balance in her spendings.....
BYe Bine

[Ceallach]

The cost does not reflect revenues that a royal family generates either.


Compared to other monarchies Spain is cheap. Liechtenstein is cheapest at free, followed by Luxembourg for cost and bang for bucks (could find exact numbers), Monaco is probably cheap except the wedding, Belgium is 28 million, Norway is 14.5 million and I suspect Sweden is similar. The UK is 40 million but the revenues from the royal wedding paid for itself plus the crown lands generate 260 million per year for the UK. The British monarchy costs Canada more per year via her representation (with mininum revenues) and the Dutch is almost 40 million while the Danish monarchy costs more too. This is also all before tax.


The ones that probably cost alot are African and Asian ones. Morocco once revealed he cost of it's monarchy - 300 million per year - and never again. Others do not reveal this info.


But compared to Presidential families is also telling - I read France pays out about 100 million per year, I believe Germany was way less but more than a monarchy, and for sure the US and Russia would spend more than France. One place figured the US was 10 times the UK but no info.

[Duke of Marmalade]

Originally Posted by DMR412

Do the Spanish Royal family have inherited wealth?

There is a separate thread for this topic but yes, they are wealthy. Not so much by heritage but rather by gathering during reign.

Wealth of the Spanish Royals

I believe Sofia is financially independent from JC and despite his considerable low income, Felipe wont be struggling either.

The SRF have lots of hidden assets and have looked after them very well in that respect through connections, business relations etc (especially JC has been very shrewd over the years or decades in that respect) therefore the family has always been well aware that showing off is not a good idea as long as the monarchy remains fragile.

JC will hate Inaki the moron for the disservice he has done to the institution and the individuals of the SRF, forcing them to open up.

[chuchu]

Originally Posted by Duke of Marmalade

There is a separate thread for this topic but yes, they are wealthy. Not so much by heritage but rather by gathering during reign.

Wealth of the Spanish Royals

I believe Sofia is financially independent from JC and despite his considerable low income, Felipe wont be struggling either.

The SRF have lots of hidden assets and have looked after them very well in that respect through connections, business relations etc (especially JC has been very shrewd over the years or decades in that respect) therefore the family has always been well aware that showing off is not a good idea as long as the monarchy remains fragile.

JC will hate Inaki the moron for the disservice he has done to the institution and the individuals of the SRF, forcing them to open up.

I certainly hope they have personal wealth. These salaries are MIDDLE middle class salaries.