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Since Archie, who does not have a royal title, is getting older and his financial situation is becoming more complicated, he could face additional costs.
If he sells his main house in the UK, he is not taxed in this country. But this same transaction would be subject to levies from the United States.
One thing that could work in its favor is the foreign tax credit, which gives you credit for foreign taxes paid on global income.
If taxes in the UK are higher, it could offset what it owes to the United States. "Assuming the US rate is lower, it's just going to scramble the paper," Hedeker said.
But he will face a lifetime commitment to file with the IRS. And the penalties can be severe if you neglect to drop.
If these demands become too heavy or if the tax costs are too high, Archie could decide to give up his citizenship, as do more and more Americans living abroad.
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According to the state department, he will have to be at least 16 years old to make that decision.
If he gives up, he will pay fees, which currently amount to $ 2,350.
He will also have to pay an exit tax on all the assets he owns on the day of his expatriation.
"The value of [his] The US passport should be such that it is more valuable than the difficulties necessary to stay in compliance, "said attorney Doug Andre, a partner at Phillips & Barker.
For the royal baby, dual citizenship may be only a disadvantage. But for ordinary individuals living abroad, the financial consequences can be serious.
"Keeping a US passport has a cost, especially if you do not live here and travel frequently," said Andre. "The cost may be prohibitive for some people."
Some expats are hoping this high-profile birth will help quickly change the heavy tax rules for Americans living abroad, McKeegan said.
"It is unlikely that the British government will want the seventh-ranked person in the throne to be taxed by the IRS," said McKeegan.
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