A person's domicile is their permanent place of residence. How is domicile established?To establish a new domicile, you need 1) a physical presence, and 2) a truthful, concurrent, intent of making the new state your permanent place of abode. The exact definition of legal domicile varies from state to state. Individuals can establish residency in two basic ways, one based on establishing domicile and the other based on graduation from high school. Domicile refers to the place you call home permanently. Your domicile is important for legal purposes such as paying taxes, voting, and claiming benefits. According to Texas law, residency involves two key factors: physical presence in the state and a clear intent to remain in Texas.