What Is Tax Domicile and Does It Automatically Change If You Move From Country to Country?
Thinking of moving to Spain from the UK? How will this affect your domicile? In essence, your 'domicile' is the country which you consider to be your permanent home.
This may not necessarily be the country that you are born in, nor the country you are living in at the present time.
Thus if you have a UK domicile and move to Spain you do not necessarily automatically change your domicile, only your residence.
Only if you can prove you intention to reside permanently in Spain can there be a change.
It is important not to confuse domicile with residence which is a far more transitory concept.
As far as the UK is concerned, technically speaking, you cannot actually have a 'United Kingdom domicile' but will, instead, have your domicile in England, Wales, Scotland or Northern Ireland.
At birth, each person acquires the domicile of the person on whom they are dependent legally.
That person will normally be their father, but could be their mother, for example if the father is deceased or their parents are separated and they live with their mother.
This is referred to as the Domicile of Origin'.
You will continue to have the same domicile as the person on whom you are legally dependent during your minority.
If it ever becomes uncertain which country you regard as your permanent home, your domicile will revert to your Domicile of Origin.
Your domicile always reverts to your Domicile of Origin under these circumstances and not to any Domicile of Dependency which you may have had.
In the majority of cases a person's Domicile of Origin remains their domicile for the rest of their life.
In order to acquire a different domicile this would be a 'Domicile of Choice, where a person emigrates and can prove their intention to reside permanently or indefinitely in their new home country.
Acquiring a new domicile for tax purposes, as a 'Domicile of Choice', can be very difficult to prove.
To acquire a new domicile, as a Domicile of Choice, it is necessary to both demonstrate the intention to adopt the new country as your permanent home as well as following this up in action and subsequent conduct.
For example Brian had a United Kingdom Domicile of Origin.
Twenty one years ago, he emigrated to Spain with the intention of living there permanently, informed the UK authorities of his move and became Spanish domiciled.
However in 2009 he leaves Spain and moves to California but he is uncertain whether he wishes to remain in California permanently.
As Brian's permanent home is now unclear, his domicile reverts to the United Kingdom instead of his previous Spanish domicile.
This may not necessarily be the country that you are born in, nor the country you are living in at the present time.
Thus if you have a UK domicile and move to Spain you do not necessarily automatically change your domicile, only your residence.
Only if you can prove you intention to reside permanently in Spain can there be a change.
It is important not to confuse domicile with residence which is a far more transitory concept.
As far as the UK is concerned, technically speaking, you cannot actually have a 'United Kingdom domicile' but will, instead, have your domicile in England, Wales, Scotland or Northern Ireland.
At birth, each person acquires the domicile of the person on whom they are dependent legally.
That person will normally be their father, but could be their mother, for example if the father is deceased or their parents are separated and they live with their mother.
This is referred to as the Domicile of Origin'.
You will continue to have the same domicile as the person on whom you are legally dependent during your minority.
If it ever becomes uncertain which country you regard as your permanent home, your domicile will revert to your Domicile of Origin.
Your domicile always reverts to your Domicile of Origin under these circumstances and not to any Domicile of Dependency which you may have had.
In the majority of cases a person's Domicile of Origin remains their domicile for the rest of their life.
In order to acquire a different domicile this would be a 'Domicile of Choice, where a person emigrates and can prove their intention to reside permanently or indefinitely in their new home country.
Acquiring a new domicile for tax purposes, as a 'Domicile of Choice', can be very difficult to prove.
To acquire a new domicile, as a Domicile of Choice, it is necessary to both demonstrate the intention to adopt the new country as your permanent home as well as following this up in action and subsequent conduct.
For example Brian had a United Kingdom Domicile of Origin.
Twenty one years ago, he emigrated to Spain with the intention of living there permanently, informed the UK authorities of his move and became Spanish domiciled.
However in 2009 he leaves Spain and moves to California but he is uncertain whether he wishes to remain in California permanently.
As Brian's permanent home is now unclear, his domicile reverts to the United Kingdom instead of his previous Spanish domicile.