Residency refers to where you currently live, while domicile refers to the place you intend to return to after a temporary absence. L Meaning of Domicile.The term "domicile" has a special legal definition that is not the same as residence. Country of domicile is the country where you make your permanent home. Domicile refers to the place you call home permanently. Your domicile is important for legal purposes such as paying taxes, voting, and claiming benefits. Residency can be the same as a person's domicile, but it also can be a person's temporary residence (i.e. Domicile was viewed as where a taxpayer chose to have their physical home, and also required the important element of intent.