Madrid, Mar 16 (IANS): Spain's King Felipe VI has renounced any personal inheritance he could receive from his father, the country's former monarch Juan Carlos I, as well as any assets, investments or financial arrangements that may not be legal or conform to acceptable standards of propriety, the Royal Palace announced.

In a statement on Sunday, the Royal Palace said that the 52-year-old Felipe was also cancelling the 82-year-old Juan Carlos's annual stipend, which in 2018 amounted to 194,232 euros ($216,000), reports Efe news reports.

The move comes after several news reports on the weekend that Felipe was the beneficiary of an "offshore" corporation created by Juan Carlos and linked to a donation or contribution - which prosecutors say is kickback money - of 65 million euros paid in 2008 by Saudi Arabia's King Abdullah to the former monarch, who abdicated in favour of his son in 2014 but was still on the throne when the payment was made.

Felipe allegedly was listed as the beneficiary of two foundations created by his father, Zagatka and Lucum, which are being investigated in Switzerland.

Swiss prosecutors are investigating the offshore account that was allegedly operated for Juan Carlos's benefit, Swiss newspaper Tribune de Geneve reported.

The newspaper reported on March 3 that $100 million that was sent to a Panamanian bank account of the Lucum Foundation came from Riyadh and that the only beneficiary of that foundation was Juan Carlos.

The payment allegedly was a commission for the awarding of the contract to build a high-speed rail line between the Saudi cities of Medina and Mecca.

Felipe and the Royal Palace have denied that he had any knowledge that he was to be a beneficiary of the fund upon the death of his father.