Understanding Domicile

Domicile is a crucial legal concept that determines which country's laws apply to you in areas like taxation and inheritance. Everyone is assigned a domicile at birth, called a "domicile of origin," and you can only have one domicile at any given time.

While you start with your domicile of origin, it's possible to acquire a new "domicile of choice" by moving to another country and intending to live there permanently. However, if you leave that country and no longer intend to settle there, your domicile of origin is automatically reactivated until you establish a new domicile of choice.

For example, John was born in Ireland, giving him an Irish domicile of origin. At age 30, he moved to Canada, bought a home, and decided to live there permanently, establishing a Canadian domicile of choice. But when John later left Canada to travel without plans to permanently settle elsewhere, his Irish domicile of origin was reactivated.

Understanding your domicile is essential, as it can affect your legal obligations and rights in significant ways, especially regarding wills and inheritance. If you are unsure you should seek advice or ask your solicitor.