Domicile ofchoice
Domicile of choice
A domicile that a person deliberately chooses by permanently moving the center of life to another country. Unlike domicile of origin, it requires a real relocation and a break with former ties.
- What it is
- A domicile a person consciously chooses by moving their centre of life for good
- How it differs
- From domicile of origin — that one is inherited, this one is chosen
- What is required
- A genuine move and severing of ties with the old country
- What it affects
- Inheritance taxes and status (in the UK, for example)
- Can be planned
- Yes, but it is a long process that must be provable
In plain words
A domicile of choice is a domicile a person acquires consciously, by moving the centre of their life to a new country for good. It is contrasted with domicile of origin, which is inherited (usually from the father) and comes without any choice.
To change your domicile to a new one, simply moving or living somewhere for a few years is not enough. You need to prove an intention to remain in the new country permanently and genuinely sever ties with the old one: sell your main home, move your family, transfer your business and centre of interests. That is exactly why domicile is more stable than tax residence — it is harder and slower to change.
The practical significance lies in inheritance taxes. In the United Kingdom, for example, it is domicile that determines whether your worldwide assets are subject to inheritance tax. That is why a domicile of choice is planned for the long term, together with residence and the asset structure.
Where it matters
What a domicile of choice requires
- To stay for good
- Not temporarily
- Provable
- Main home
- Family
- Business and interests
- Ties with the old country
- The previous home
- The previous centre of life
- Inheritance tax
- Status in the UK
- Asset planning
How to change domicile
- 01Assessing your current domicile
- 02Calculating the tax consequences
- 03Moving and intending to stay
- 04Severing old ties
- 05A new domicile of choice
What you need to know
- A domicile of choice is acquired consciously
- It requires an intention to stay for good, not temporarily
- A genuine severing of ties with the old country is required
- It is more stable and harder to change than tax residence
- It affects inheritance taxes above all
Common mistakes
- Assuming a move automatically changes domicile
- Keeping your main home and ties in the old country
- Confusing a change of domicile with a change of residence
- Not documenting evidence of the intention to stay
- Ignoring inheritance tax under the old domicile
What this means for a BRIDGES client
We review your domicile together with your residence and asset structure: what actually needs to be done to change it properly, how it will affect inheritance taxes and what evidence will be needed for the new domicile to be recognised.
Frequently asked questions
01 /How is a domicile of choice acquired?
By genuinely and permanently moving your centre of life to a new country — home, family, business, interests — and provably severing ties with the old one. Simply living there for a few years is not enough.
02 /How does it differ from domicile of origin?
Domicile of origin is inherited without choice, usually from the father. A domicile of choice is acquired consciously, by changing the country of permanent life.
03 /Why change domicile?
Most often for inheritance taxes: in some countries, such as the UK, it is domicile that determines how worldwide assets are taxed.
04 /Is moving enough?
No. You need to prove an intention to stay for good and sever ties with the old country. Domicile is more stable than residence and harder to change.
05 /Does a second passport change domicile?
No. Domicile is about an actual deep connection with a country, not citizenship. A passport does not change it by itself.
06 /When should it be planned?
In advance and for the long term, together with residence and the asset structure, especially if the goal is to optimise inheritance tax.
See also
Read next
This material has undergone editorial review by BRIDGES.
Planning to change your domicile?
We will show what a domicile of choice really takes and how it will affect inheritance taxes and your asset structure.