Story by Closer staff
Key takeaways
- Luxury Property Pressure: The couple may need to sell their €3.6M Portuguese villa due to high costs including taxes, insurance, and maintenance, despite it being their dream holiday home.
- Declining Popularity & Income: Meghan’s popularity has dropped in the UK and US, impacting revenue from her As Ever brand and other deals, putting more financial pressure on the family.
- High Expenses & Legal Bills: Maintaining their Californian lifestyle costs at least $3–6M annually, with potential £50M legal bills adding to the urgency for tough financial decisions.
Riding on a high following the huge success of their Netflix documentary, Prince Harry and Meghan Markle celebrated in a BIG way – by splashing out a reported £3.6 million on an exclusive villa in Portugal back in 2023.
The staggering amount ensured that not only would they have a European base, but that their expansive second home would be private, being set on a luxury development of 300 homes built on what has been named ‘the Iberian Hamptons’ and boasting neighbours such as Harry’s cousin, Princess Eugenie and her family.
Three years on and we were treated to just a small taste of how the Sussexes ‘do’ Europe. Miles of sandy beaches, rustic restaurants, frolicking in the pool and shopping for local artisan products appeared to be the flavour of the week.
The costs from the Portuguese property are adding up
Posting a carefully curated selection of holiday snapshots to social media, Meghan, 44, appeared to be living her best life. But behind the sepia-soaked images, Meghan and Harry’s finances have come under scrutiny in recent months, after the couple have seen most of their most profitable deals fall to wayside in recent years.
Now, in a u-turn that nobody will have expected, we’re told how the Sussexes could be faced with the heartbreaking decision over whether to sell their idyllic Portuguese retreat amidst their alleged deepening financial crisis.
An insider says, ‘Everything’s under the microscope financially right now and their Portuguese place is one of their biggest expenses after Montecito, if not the biggest.
‘Even though it’s a newer property, there are still plenty of costs beyond the millions they spent to buy it. The annual club fees alone are eye-watering, then you’ve got insurance, taxes, maintenance, and all the other day-to-day costs of keeping a holiday home running, so it’s become a massive luxury at a time when there’s less money coming in and plenty going out.’
Meghan shared a carousel of snaps from their holiday
The claims come just weeks after it emerged how Meghan’s popularity both in the UK and in the US appears to have fallen considerably.
Last month it was revealed how data collected by YouGov America showed a rapid decline in Meghan’s popularity since last year. Polls showed that compared to 2025, where 37% of voters ‘liked’ Meghan, only 29% voted in favour of the Duchess at the start of this year.
Furthermore, US site Newsweek claimed that a separate search they had conducted revealed that the traffic to Meghan’s As Ever brand’s website fell by 89,000 in the US in January.
Meanwhile, sources have claimed that Meghan is now the ‘breadwinner’ for their family, with Harry, 41, recently describing his day jobs as ‘full-time dad’ and ‘Prince of England’.
The family spent time at their luxury house in Portugal
In the past few months, the Sussexes have announced their new project with Netflix – a film adaptation of the book ‘No Way Out’ by Major Adam Jowett – as part of their new, lesser deal with Netflix. Meghan is also reported to have trademarked her brand name in Australia, with plans to expand globally.
However, the source says time is of the essence and the couple may need to face ‘some difficult decisions’ if they want to maintain their current Californian lifestyle – and that could mean that their European ‘dream’ faces ‘the chopping block’.
We’re told, ‘They’re doing everything they can to hold onto it because they absolutely love having that escape, but the reality is they’re having to look at every major outgoing. If things don’t improve financially, it’s definitely one of the assets that will very likely end up on the chopping block, as painful as that would be.
‘Neither of them wants to even think about selling it because they see it as their dream holiday home, but they’re also having to be realistic. There are going to have to be cutbacks and some difficult decisions if they want to get their finances back on track, and that property is right near the top of the list because it’s just so expensive to keep.’
Meghan
And as with many things with the Sussexes, the images Meghan posts on Instagram and the conversations had around their lifestyle in Montecito, California, aren’t always what they want us to believe.
While home-baking, tending to chickens and, according to Meghan on her recent Masterchef debut, picking their own desserts from the garden, may hint to something akin to Little House on the Prairie, make no mistake – the Sussexes live in one of the most exclusive, and expensive, enclaves in California, undoubtedly with substantial outgoings.
Of course, behind the gates of their sun-soaked Californian home, Meghan only shares glimpses of their farmhouse style kitchen and idyllic grounds, but if she were to pan the camera a little further, audiences buying into her ‘simple life’ ethos would see the nine bedrooms, 16 bathrooms, a swimming pool, a play park and the expansive grounds and private rose garden the couple need to maintain.
Royal author Tom Bower made the shocking revelation in his new book, ‘Betrayal: Power, Deceit and the Fight for the Future of the Royal Family’, that the Sussexes need an income of at least $3 million annually to maintain their current lifestyle, with recent US reports speculating that the figure could even reach $6 million.
This figure is said to include a team of house staff, including security and a nanny, on top of key figures like PR advisers, management teams and travel costs – the list is seemingly endless.
Harry and Meghan need to make some changes to their lifestyle
In December it was also revealed that Meghan and Harry had been ‘forced to downsize’ their staff at Archewell; reportedly up to 60% percent of their team, as the foundation went through a major rebrand.
Now the source says, ‘It’s no secret they’ve been looking to cut back for a long time. Even before this monumental legal bill was hanging over them, they were already under serious financial pressure behind the scenes.
‘That’s why they downsized their staff to the bare minimum and became much more careful about where their money was going. They’ve quietly tightened their belts when it comes to so many of the luxuries they used to enjoy.
‘They’ve tried their best not to make a big deal of it publicly but there’s no denying they’ve had to make some pretty significant adjustments to their lifestyle. The fact is, the cost of living has gone up for everyone, and they aren’t immune.’
To add further insult to injury, Harry – alongside six other high-profile claimants including Elton John and Baroness Doreen Lawrence – could now face a staggering £50 million legal bill after a judge ruled against them following a lengthy legal battle against a British newspaper earlier this month.
Harry may be on the hook for millions after his court case
Now the source says this has meant that Harry and Meghan could be more under pressure than ever to take ‘a hard look’ at their outgoings.
‘Now that Harry is on the hook for potentially millions of pounds, their financial worries have gone to a whole new level. This isn’t just about tightening the purse strings anymore, they’ve got to take a hard look at every major expense,’ the insider says.
‘There are certain areas where they simply can’t afford to cut corners, particularly when it comes to security. That’s always going to be their biggest priority and they’re not prepared to compromise on that under any circumstances. But outside of essential costs, everything else is being scrutinized and they’re going to have to make some very difficult decisions.’
And we’re told that the obvious place to start is their holiday home, despite it not only being an escape, but also a private and secure base for the family should they want to spend more time with the royals in England in the near future.
The source explains, ‘As much as they both want to hang on to it, the reality is that it’s an expensive luxury they may no longer be able to justify. Owning a second property comes with huge ongoing costs, and when you’re suddenly staring down the possibility of a massive legal payout, those kinds of assets inevitably come under the spotlight.
‘If they do end up unloading it, there’s no doubt Harry will be absolutely gutted because it’s much more than just a house. It gives him an opportunity to spend time in Europe and provides at least some sense of being closer to home and connected to his old life. Letting it go would be an emotional loss but at this point they really can’t afford to make financial decisions based on what feels good’
