US Citizens: Domicile and Residency Are Two Different Things!

If you’re ready to drop it all and go all in on the digital nomad lifestyle, the first thing you should consider is where you will call home for legal reasons, even if you no longer have a home.

The concepts of domicile and residency are similar, but still very different. To simplify it, think of the difference between having a home address and a PO Box. With the home address, you can claim this as your residence, register to vote, pay taxes (not that you want to!), and use this for any legal matter. With the PO Box you can receive mail and packages, but you can’t use it for legal and residency reasons.

In order to continue to remain a legal resident within the US, you will still need to claim a domicile address, even if you no longer have a home and aren’t a citizen of another country! The address that will identify you on your driver’s license or state ID, the address that you will use to vote, (even if voting outside of your jurisdiction via mail-in ballot), the address you will use for tax purposes.

So how can you do that? The easiest option is to find a family member or friend who you trust, and trust strongly! Because you may need them to open and scan your mail, if they can’t forward it to you due to your location or other logistical obstacle.

You may also want to consider claiming domicile in a state where there is no state income tax, where car registration doesn’t require an in-person presence, and where there is no minimum requirement for residing there. If you don’t have trusted friends or family in a state like that, a few of these states offer services that allow you to both receive mail and claim domicile.

Now I am no attorney, so I will leave my advice and information here. But there are some great resources that can help guide your decision-making in this department. One fantastic, comprehensive, and to-the-point resource I found is this post on Savvy Nomad. Check it out and see which state suits you best!