King Felipe has dramatically announced that he is giving up his rights to an inheritance from his father, former-king Juan Carlos, who abdicated in 2014.
In addition, the monarch has decided to withdraw an estimated 200,000 euros annual grant to the 82-year-old King Emeritus.
In a surprise written statement from the Royal household, King Felipe reacted to new revelations in the British Telegraph surrounding Juan Carlos and alleged multi-million-euro bank accounts and foundations linked to Switzerland and Panama.
The Royal household said that the King had promised at his 2014 investiture ceremony that, "the Crown should... protect the dignity of the Institution, preserve its prestige and conduct itself in an integral, honest and transparent way..."
The Telegraph alleged that two foundations linked to Juan Carlos stated that his son, King Felipe, and his family would be beneficiaries on his father's death.
The statement added that the King had no knowledge he was beneficiary of one of the foundations, Fundación Zagatka, and that for the other foundation, Fundación Lucum, he had renounced being a beneficiary in 2019 after receiving a letter from lawyers.
In complicated ongoing probes in Spain, Switzerland and the UK, investigators suspect that the foundations could have been set up to receive huge commission payments due to former King Juan Carlos. One key element of the corruption investigation is a high speed-rail contract given to Spanish constructors in Saudi Arabia in 2012 and a 100-million-euro payment to one foundation from the Saudi Arabian king.
At the centre of the cases is a former lover of Juan Carlos, Corinna Larsen. In recordings leaked in 2018, it emerged she supposedly received a transfer of 62 million euros as part of a brokering deal with Saudi Arabia.
Larsen has launched a lawsuit in the UK claiming harassment since the recorded revelations and it is leaks in that case that prompted King Felipe's latest move.