Each year The Crown Prince receives a sum as part of the government’s annual budget.  The amount is called an apanage or annual allowance and covers the cost of The Crown Prince’s staff and his personal expenditure.

According to the Act of Parliament No. 322 of  5 May 2004, concerning the annual allowance for Crown Prince Frederik, the amount of the annual allowance, or ‘appanage’,  has been increased with effect from 14 May 2004, on the occasion of his marriage.

The annual allowance is now DKK 17,873,004.- per annum, indexed at 1 October 2009. This provides a monthly allowance of DKK 1,489,417.- of which 10% is allocated to Crown Princess Mary.

Additionally, the state provides furnished palaces with full inventories for the Royal Family. The outside maintenance of these buildings is paid by the public sector, whilst internal maintenance is paid by the Royal Court. The Crown Prince has use of parts of Christian VIII’s Palace and the Chancellery House adjacent to Fredensborg Palace.

The Danish Royal Family does not pay income tax or registration tax on their motor vehicles. The Royal Family does pay Value Added Tax ( VAT – in Danish, MOMS) but this is refunded. The Royal Family is required by law to comply with the standard regulations concerning payment of death duties and inheritance tax.