Civil domicile and tax residence: what differences?

However, these two notions follow distinct legal logics. It is possible to be domiciled in one country for civil law purposes while being considered tax resident in another.

This distinction may have significant consequences, particularly in terms of taxation, inheritance and the jurisdiction of administrative authorities.

What is civil domicile?

Civil domicile corresponds to the place where a person is legally attached for the exercise of their civil rights.

It determines for example:

• the jurisdiction of certain administrations
• the location of official procedures
• the framework applicable to various legal acts

Civil domicile may be linked to habitual residence, but also to family or professional elements.

What is tax residence?

Tax residence is used to determine in which State a person is taxable on their income.

It is based on criteria which may include:

• the length of presence in the territory
• the existence of a household
• the place of professional activity
• the centre of economic interests

These criteria are analysed by the tax authorities and may lead to a conclusion different from that adopted for civil domicile.

For a detailed analysis: Tax residence between France and Spain.

Why civil domicile and tax residence may diverge

Several situations may explain a difference between the two notions:

• a person lives mainly in one country but retains strong family ties in another
• the principal economic activity is carried out in a State different from the place of living
• a recent departure has not yet produced all of its administrative effects

In these cases, civil law and tax law may lead to different connections.

Practical consequences of this divergence

A difference between civil domicile and tax residence may influence:

• the place where income must be declared
• the application of international treaties
• the taxation applicable in the event of a gift or an inheritance
• the reporting obligations of heirs

A poor understanding of this distinction may lead to filing errors or situations of double taxation.

In inheritance matters, see also: Inheritance in Spain for French speakers.

Why an individual assessment is necessary

Each family and asset situation has its own particularities.

The authorities examine the concrete facts and do not limit themselves to formal statements. An incorrect classification may be challenged several years later.

It is therefore essential to verify precisely the consistency between your civil situation and your tax situation.

Have my residence situation reviewed