DEFINITION of 'Domicile'

One's primary residence for tax purposes. A domicile is established via a driver's license, voter registration and as being the address of record for credit cards and other bills. Although most people do, it is not necessary that one live in their listed domicile.


Because a domicile is established primarily for tax purposes, it is somewhat controversial. This is due to the fact that many foreign workers establish residences elsewhere to avoid paying taxes. In 2012, Facebook co-founder Eduardo Saverin drew just such suspicion when he renounced his United States citizenship immediately prior to Facebook's IPO. Saverin established a home in Singapore that has no capital gains tax. The long-term capital gains tax for Americans with incomes equivalent to Saverin's is a minimum of 15%.

  1. IRS Publication 527 - Residential ...

    A document published by the Internal Revenue Service (IRS) that ...
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  3. Principal Residence

    The primary location that a person inhabits. It doesn't matter ...
  4. Corporation

    A legal entity that is separate and distinct from its owners. ...
  5. Resident Alien

    A foreigner who is a permanent resident of the country in which ...
  6. Non-Resident

    An individual who mainly resides in one region or jurisdiction ...
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