Domicile

Dictionary Says

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.



Investopedia Says

Investopedia explains '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%.

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