Domicile

Domicile is the place where a person is considered to have their permanent legal home, meaning the country or territory they regard as their true home and intend to remain in for the long term.

Domicile is different from ordinary residence and also different from citizenship. A person may reside temporarily in many places but can only have one domicile at any given time. This concept is particularly important in tax and inheritance law.

In international wealth planning, domicile determines how a country taxes an individual's global income, inheritance, and assets. Incorrect determination can lead to unexpected tax liabilities.

Many investors choose countries with favourable tax policies for new arrivals to optimise their tax obligations within the framework of the law. This is a core part of wealth structuring advice.

See how a European country handles taxes for residents in our article on taxes in Portugal.