Understanding Domicile

By Rebecca Scaife

Published on: August 31, 2023

In the realm of financial planning and taxation, the term 'domicile' often surfaces for individuals who were not born in Ireland.

In the realm of financial planning and taxation, the term ‘domicile’ often surfaces for individuals who were not born in Ireland.

But what does it really mean, and why is it so significant? Let’s delve into the concept, its interpretation in relation to taxation, and its implications for financial planning.

What is Domicile?

At its core, domicile is a legal concept used to determine which country’s laws apply to an individual, particularly in matters of succession and taxation. It’s not to be confused with residence or nationality.

While residence pertains to where you live at a particular time, and nationality relates to the country of your citizenship, domicile is concerned with where you consider your permanent home or have the closest long-term connection.

Domicile & Taxation in Ireland

In Ireland, your domicile can have significant tax implications.

Both domicile and residence are considered for a number of taxes including Deposit Interest Retention Tax (DIRT), income tax, Capital Acquisitions Tax (CAT)/inheritance tax, gift tax, and Capital Gains Tax.

For more information on visit Revenue.ie.

Domicile & Financial Planning in Ireland

Understanding your domicile status is crucial for effective financial planning in Ireland for various reason, including the following:

Estate Planning – domicile affects how your worldwide assets are distributed upon death. For those domiciled in Ireland, Irish succession laws apply to all their assets, regardless of where they are located. For non-domiciled individuals, only assets situated in Ireland fall under Irish succession laws.

Tax Efficiency – knowing your domicile status can help you structure your finances in a tax-efficient manner. For instance, non-domiciled individuals might consider keeping foreign income outside Ireland to avoid Irish taxation.

Retirement Planning – your domicile can influence where you decide to retire and how you structure your retirement savings. It’s essential to consider potential tax liabilities in your retirement destination.

Investment Decisions – domicile can impact the taxation of investment income. Being aware of this can guide you in making informed investment choices that align with your financial goals and tax situation.


Domicile is a nuanced concept with profound implications for taxation and financial planning in Ireland.

For individuals who were born outside Ireland who are looking to optimise their financial strategy, understanding domicile is paramount.

We can help you to grasp the intricacies of domicile, and navigate the complex waters of taxation and estate planning to make informed decisions that pave the way for a secure financial future in Ireland.