A residence is a place of some permanency, while a domicile is a true, fixed permanent home to which an individual intends to return after an absence. Residency refers to where you currently live, while domicile refers to the place you intend to return to after a temporary absence.A person's domicile is the place where they have their most settled legal connection. Your domicile is the state of your permanent home, or the state you consider your home whenever you are elsewhere. Your domicile is an important place. Difference Between Domicile vs.