Concept
In cross-border succession, everything starts with three connecting factors of the deceased—domicile, tax residence and citizenship. Which one "triggers" determines the applicable law, inheritance tax, and forced heirship rules.
The problem is that these concepts do not coincide and mean different things in different countries. A person can be a tax resident of one country, domiciled in another and a citizen of a third—and each connecting factor pulls its own weight.
🍓 Domicile, residence and citizenship are three different connecting factors. Which one determines succession depends on the country: common law looks at domicile, the EU at habitual residence, and a number of countries at citizenship.
Domicile (common law)
Domicile is an Anglo-Saxon concept of "permanent home". It is not equal to citizenship or residence permit: it is the country a person considers their permanent home and intends to return to. Domicile "sticks" for a long time and triggers inheritance tax—which is precisely why the UK caught worldwide assets through it for decades (until the 2025 reform).
Habitual Residence (EU)
Regulation 650/2012 replaced domicile with habitual residence—the actual habitual place of residence at the time of death. This is a more down-to-earth test: where the person actually lived, where the centre of their life was. It determines the law applicable to EU succession by default.
Citizenship
Citizenship rarely determines succession directly, but gives the right of choice: under Brussels IV you can choose the law of the country of your citizenship. Some continental legal systems have historically tied succession to the deceased's citizenship.
⚙️ Tax residence for income tax and "domicile/place of residence" for succession are different tests. A change of tax residence does not automatically mean a change of domicile.
Why This Needs to Be Planned
🔗 Related
applicable law and Brussels IV · Applicable Law and Brussels IV · Forced Heirship · Trusts and Inheritance Tax (UK IHT) · Succession Planning
Connecting factors can and should be designed: relocation, abandonment of domicile, choice of law in a will change the picture. But this is done in advance and across all countries at once—otherwise heirs get a conflict of jurisdictions instead of assets.
💡 How connecting factors translate into specific applicable law—see applicable law and Brussels IV.
This material is for reference purposes and does not constitute individual legal advice.
Key factual claims
- Regulation 650/2012 replaced domicile with habitual residence—the actual habitual place of residence at the time of death.