Juan Carlos, who abdicated in 2014, will also lose public allowance from the state's budget due to the move.
"King Juan Carlos is aware of his decision to renounce the inheritance of Juan Carlos that could personally correspond to him, as well as to any asset, investment or financial structure whose origin, characteristics or purpose may not be in accordance with the legality or with the criteria of rectitude and integrity that govern his institutional and private activity and that they must report the activity of the Crown," a statement from the Casa Real reads.
Former King Juan Carlos (right) was Spain's first reigning monarch since 1931 and reinstated parliamentary democracy in the country following the death of dictator Francisco Franco. Photo: © Carlos Alvarez/Getty Images
According to The New York Times, there is an ongoing Swiss investigation into an offshore account allegedly operated for the former King. Reports allege the account received $100 million from Saudi Arabia in 2008.
Felipe's move comes just after he and Queen Letizia were tested for coronavirus last week. Letizia had met with a Spanish government minister who later tested positive for the virus. The King and Queen were found to be negative, but have put a pause on public activities for the moment and are following the Spanish government's recommendations as Europe continues to deal with the coronavirus pandemic.
As of this writing, there have been nearly 165,000 confirmed cases of COVID-19 in 146 countries, according to the World Health Organization. The illness has caused nearly 6,500 deaths. Spain has 7,753 of those cases.