Prince Harry and Meghan Markle are said to have signed a rent-free deal with Buckingham Palace after renovating Frogmore Cottage.
The couple spent £2.4m in taxpayer cash on renovations before they paid it back when they moved across the pond to California.
They were expected to pay a “commercial fee” on the Windsor estate’s rent after stepping down as senior royals in 2020.
However, an agreement was reached that the restored cash would wipe out any further financial obligations, reports The Mail on Sunday.
Estimated annual rents range from £150,000 to £230,000, meaning the Sussexes could save £690,000 over the next three years.
A palace spokesperson said: ‘The Duke and Duchess of Sussex have donated £2.4m to the Sovereign Grant to cover the renovation of Frogmore Cottage.
“They have fulfilled their financial obligations related to the property.
“In line with normal Sovereign Grant Report practice, the accounting has been reviewed and approved by the National Audit Office and the Ministry of Finance.
“Details regarding the Sussexes’ rental agreements, as well as any such agreements between landlords and tenants, are private.”
The lump sum was split into three headings recorded in two accounts in a grant report outlining public spending on the monarchy show.
In the 2020/21 figures, the money is listed as both ‘rental income’ and ‘recharging of functional and other income’.
The following year, the third installment will be shown as ‘Deferred income on current liabilities’.
The accountant, who requested anonymity, said, “This is how accountants balance their books.
“They will look at this deal and say, ‘Yes, but there is still value to be gained from the rental agreement.’ So there needs to be value in the account.
“By allowing the Sussexes to stay at Frogmore Cottage without further payment, the royal family has given up value and should be acknowledged. They are using part of £2.4m to do so. .”
Frogmore Cottage became the official residence of the Sussexes in 2019.
They moved in after undergoing an extensive and expensive renovation, turning the property into a large family home.
But when he stepped down as senior royals, Harry and Meghan paid back the money they spent.
The couple were evicted last month and the keys to a five-bedroom cottage were given to Prince Andrew.
King Charles began the process of ousting Harry and Meg days after his son’s controversial memoir Spare was published.
A source close to the couple told close friend and author Omid Scobie, “Everything feels very final and like a cruel punishment.
“as if [the family] I want to cut them out of the picture forever. ”
It is yet to be confirmed whether the Duke and Duchess will attend the King’s coronation in May.
It is understood that they must pack their bags and move their belongings out of Frogmore until the opportunity is over.