Domicile refers to the place you call home permanently. Your domicile is important for legal purposes such as paying taxes, voting, and claiming benefits.Domicile is the traditional way of defining residence. It means your permanent home, i.c. , any place where you have lived and, while you are absent from it, you intend to return. Domicile is intended to be permanent rather than temporary, whereas residence means living in a particular locality and requires mere physical presence. Domicile is a fancy word for the place where you live. Whether it's a mansion on 5th Avenue or a tee-pee in the desert, if you live in it, it's your domicile.