Your domicile, or legal residence, is your true home or main residence. You may have multiple residences at one time, but only 1 domicile.Domicile or legal home is defined as consisting of three elements: (1) actual physical presence (2) at a fixed dwelling. Find out what you should file and how to report your income. Legal residence (domicile). Domicile is intended to be permanent rather than temporary, whereas residence means living in a particular locality and requires mere physical presence. An individual's domicile is the place in which the individual maintains their true, fixed, and permanent home. Simply put, your domicile is your home—the state you consider your permanent place of residence. Domicile refers to the place you call home permanently. Your domicile is important for legal purposes such as paying taxes, voting, and claiming benefits.