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Domicile of Choice

Also known as: Acquired Domicile, Chosen Domicile

Definition

Domicile of choice is the country you've actively chosen to make your permanent home by living there and intending to remain indefinitely, different from your domicile of origin.

Acquiring domicile of choice is one of the most significant decisions in international estate planning, affecting which country's laws govern your will and how your estate is administered.

What Does Domicile of Choice Mean?

Under UK common law principles reflected in HMRC guidance, domicile of choice is acquired through two essential requirements working together: physical residence in a country and a clear intention to remain there permanently or indefinitely. Unlike your domicile of origin (assigned at birth based on your father's domicile), domicile of choice is something you actively acquire through deliberate action and sustained intention. While domicile previously determined UK Inheritance Tax liability, from April 2025 onwards the UK tax system uses residence-based rules instead—however, domicile of choice still matters significantly for determining which country's laws govern your will's validity and estate administration.

The two-part test requires both elements simultaneously. First, you must physically reside in the new country as an actual inhabitant—you cannot acquire domicile of choice somewhere you've never lived. Second, you must form a clear, fixed intention to remain permanently or indefinitely. "Indefinitely" means an unlimited period without a clearly foreseen reason to leave, though it doesn't require an irrevocable commitment to stay forever. Your intention is assessed objectively through evidence like property ownership, family connections, severing ties with your previous domicile, local community integration, and consistent actions over time—not just what you say.

Consider Sarah, age 62, who retires to Spain. She sells her Manchester home for £340,000, buys a villa in Andalusia, registers with Spanish authorities, obtains residency, and joins local clubs. If her actions consistently demonstrate she intends Spain as her permanent home (not just sunny winters), she can acquire Spanish domicile of choice. In contrast, David, age 35, takes a three-year work contract in Singapore. Despite living there and enjoying it, if he plans to return to the UK when the contract ends, he lacks the required indefinite intention and won't acquire Singapore domicile of choice.

Losing domicile of choice requires abandoning both residence and intention. If you leave without acquiring a new domicile of choice elsewhere, your domicile of origin automatically revives—it waits "in the background" and cannot be permanently lost. Professional advice is essential because the burden of proof is high: you need clear, cogent, and compelling evidence of your permanent commitment, and conditional intentions like "I'll stay unless my health deteriorates" may prevent acquisition entirely.

Common Questions

"Can I change my domicile from the UK to another country?" Yes, you can acquire a domicile of choice in another country by physically residing there and demonstrating a clear intention to remain permanently or indefinitely. You must provide strong evidence of your permanent commitment, such as severing UK ties, buying property, establishing family connections, and integrating into the new country's community.

"Is domicile of choice the same as residency or citizenship?" No, domicile of choice is a separate legal concept from both residency and citizenship. You can be resident in a country for tax purposes without having domicile of choice there, and you don't need citizenship to acquire domicile of choice. Domicile focuses specifically on where you intend to make your permanent home indefinitely.

"What happens to my domicile of choice if I move again?" If you leave a country where you had domicile of choice without acquiring a new domicile of choice elsewhere, your domicile of origin automatically revives. To acquire a new domicile of choice, you must again satisfy both requirements: physical residence in the new country and clear intention to remain there permanently or indefinitely.

Common Misconceptions

Myth: If I live in another country for several years, I automatically acquire domicile of choice there.

Reality: Simply living in a country, even for many years, does not automatically create domicile of choice. You must also demonstrate a clear intention to remain permanently or indefinitely through concrete evidence like property ownership, family ties, and severing connections with your previous domicile. Temporary or work-related residence typically lacks the required indefinite intention.

Myth: Domicile is the same as citizenship or nationality—if I have a UK passport, I have UK domicile.

Reality: Domicile, citizenship, and nationality are completely separate legal concepts. You can hold a UK passport without having UK domicile (if you've acquired domicile of choice elsewhere), and you can have UK domicile without British citizenship. Domicile is about where you intend to make your permanent home, not which passport you hold.

  • Domicile of Origin: The domicile assigned at birth that revives automatically if you lose domicile of choice without acquiring a new one elsewhere.
  • Deemed Domicile: A tax fiction used before April 2025 that could treat someone as UK domiciled for tax purposes even if they had acquired domicile of choice elsewhere.
  • Inheritance Tax (IHT): The tax historically determined by domicile status; from April 2025, UK IHT applies based on residence rather than domicile.
  • Tax Residency: A separate concept based primarily on physical presence, distinct from domicile which requires both residence and indefinite intention.
  • International Estate Planning: The broader planning context where domicile of choice determines which country's succession laws apply to your estate.

Need Help with Your Will?

Understanding domicile of choice is essential if you've lived abroad or plan to retire overseas, as it determines which country's laws govern your will's validity and estate administration.

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Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.