Pope Leo XIV is the first American Pope. Born as Robert Francis Prevost, he was a native of Chicago. He is still an American citizen and will now face the biggest American truth- taxes. This is despite his historical and spiritual significance.
Even with his Vatican residency, Pope Leo XIV was bound by American tax rules as a US citizen. This includes filing a tax report with the Internal Revenue Service (IRS).
Even when residing overseas, residents are required by US law to record and perhaps pay taxes on their worldwide income. Now this will definitely raise complications and international financial issues because the US government may tax the pope’s Vatican stipend. The monthly stipend for the Pope is reportedly around $33,000 per month.
There was few chatter that the US government might offer any exemptions or leniency due to the pope’s singular position. However, tax professionals suggest this is unlikely.
Tax experts accept that Pope Leo XIV’s circumstances are exceptional. However, they argue that he is essentially subject to the same rules that apply to other American citizens living overseas, as reported by Washington Post. “The IRS doesn’t typically carve out exceptions based on religious or political roles unless specifically legislated,” as noted by Professor Beverly Moran of Vanderbilt University. This supports the notion that his responsibilities might not be all that different from those of other Americans living abroad.
This is interesting, Pope Leo XIV being a dual citizen of the United States is required to pay taxes on *worldwide* monies – regardless if he takes the salary that the pontiff would receive— but the plot thickens 👀👇 pic.twitter.com/ZXJTzt22yk
— Erica 🇺🇸🇺🇸🇺🇸 (@EricaRN4USA) May 13, 2025
Pope Leo XIV’s stance may result in even more intricate reporting requirements beyond income taxation. Under US law, his control over Vatican money and assets might make him even more vulnerable.
Pope Leo could fall under the Foreign Account Tax Compliance Act (FATCA). This mandates that foreign organisations, like the Vatican Bank, notify the IRS of their holdings of US persons. Therefore, the Vatican may be required to inform the IRS of all their holdings.
FATCA strikes again! This time the U.S. citizen-based tax system affects the new U.S. pope, Leo XIV. https://t.co/Xqfy3DNMrr
— Colleen Graffy (@Colleen_Graffy) May 11, 2025
The purpose of the 2010 FATCA was to prevent offshore tax evasion. Pope Leo XIV retains or has signing authority over Vatican accounts; the Vatican might need to disclose details required by the IRS. The law requires reporting for overseas accounts with balances over $10,000, which may lead to additional compliance problems. This will not change due to the religious and diplomatic position the pope may hold.
In the US, home or parsonage exemptions are frequently available to clergy members. However, Pope Leo’s particular income structure and living arrangements in Vatican City may make these deductions difficult to apply. Given his high profile, any deductions would probably be restricted or may need a strong explanation.
How many accountants does the pope have? As an American living abroad, Pope Leo XIV may need a small army of them. Read why in our WSJ op-ed published today (paywall):https://t.co/lXlsmoV7sL#taxfairnessabroad #enddoubletaxation #pope #expats #AmericansAbroad #USAbroad #FATCA…
— Tax Fairness for Americans Abroad (@TaxFairUSAbroad) May 10, 2025
Pope Leo XIV might have to rely on a team of seasoned tax lawyers and financial advisors. This team is required to understand international law, religion, and the US tax code. Pope will need careful preparation and knowledgeable direction from his team. This team will have to successfully balance the demands of its federal tax obligations with its spiritual leadership responsibilities.
Pope Leo XIV is now faced with a practical dilemma- managing the American tax system while leading a worldwide church.
Scroll down for some images of Pope Leo XIV:
Pope Leo XIV was appointed as the new head of the Catholic Church on May 8, 2025.
Pope Leo XIV has succeeded Pope Francis who died on April 21, 2025.
