Domicile refers to the place you call home permanently. Your domicile is important for legal purposes such as paying taxes, voting, and claiming benefits.A person's domicile is their permanent place of residence. How is domicile established? Individuals can establish residency in two basic ways, one based on establishing domicile and the other based on graduation from high school. If you make a permanent move to a new state, it's important to establish legal domicile there if you want to escape taxes in the state you left. According to Texas law, residency involves two key factors: physical presence in the state and a clear intent to remain in Texas. An affidavit of domicile is a legal document that verifies the primary place of residency of someone after their death.