Non-domicile

A legal status held by an individual who resides in a particular country but is not considered to be permanently domiciled there for tax or other legal purposes. Domicile generally refers to the place where a person has their permanent home and intends to return to. Non-domiciles typically maintain a domicile in another country, often the country of their birth or previous long-term residence, and may benefit from specific tax rules relating to foreign income and assets. This status is often utilized by individuals with international business interests, high net worth, or those relocating temporarily for work or lifestyle reasons. This status allows individuals to declare all or some of their foreign income outside of a country's tax rules.

Non-domicile meaning with examples

• Mr. Abernathy, a US citizen working in London for a global firm, maintains his permanent home in New York. He has been granted non-domicile status in the UK, meaning he is only taxed on income earned within the UK, and on any foreign income remitted to the UK. This benefits him significantly.
• An Australian artist living and working in Paris for five years retains non-domicile status in France because their primary home and assets remain in Australia. The French government cannot tax them on income that is not related to the country, unless the funds were remitted to France. This gives the artist a tax break.
• During her time as a research fellow at a university in Canada, Dr. Chen retained non-domicile status, continuing to be taxed as per the rules of China. Even though she lived in Canada for three years, her intention was to return to her home country at the end of the fellowship period. This greatly reduced her taxes.
• Although she works in Singapore, Mrs. Silva has secured non-domicile status, as her domicile remains Portugal. She pays the tax on her Singapore income, and the government does not tax any money from her home country. This arrangement provides her financial advantage.