What is a domicile?

"Domicil " is a term you’ll encounter in two contexts: as a legal concept that determines where a person or business is liable for taxes, and as a real estate term referring to a specific type of commercial property. If you’re a business owner or looking for new premises, it’s especially the latter meaning that’s relevant to you—and the one this article focuses on most.

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"Domicil" has several meanings

The word “domicile” comes from the Latin domicilium, meaning “place of residence,” which is derived from domus, meaning “house.” In its basic sense, “domicile” refers to the permanent residence or place of residence where a person or business is based.

“Domicile” is also a legal term that determines where a person or company is legally based—and thus where they are liable for taxes. But in the commercial real estate industry, we use the word in a third way: to refer to a “domicile property,” that is, a building that a company uses as its headquarters. This is the meaning that will be the focus of the rest of this article.

Domicile is also a legal and tax-related term

The law distinguishes between a person's domicile (the address where a person lives and has their permanent residence) and a company's domicile (the place where a company is registered and has its management).

For businesses, the place of domicile is particularly crucial for tax liability: if your business is domiciled in Denmark, it pays tax on its income here, and the place of domicile also determines which court has jurisdiction in the event of a dispute. If your company operates in multiple countries, you must therefore keep track of where it is domiciled in each country, as this determines which rules and tax regulations apply to you there.

The domicile is linked to where the company’s management and operations are actually located—and this is where the physical address comes into play. If your company has consolidated its entire organization in its own property, that address typically also serves as your legal and tax domicile.

A residential property is a different matter in the business world

In the commercial real estate sector, a single-tenant property refers to a property that serves as the headquarters of a single company and is used exclusively by that company—as opposed to a multi-tenant property, where several companies share the same building and typically lease separate portions of it, such as office space or retail space.

A corporate headquarters building thus houses the company’s entire office, production, and warehouse —or other functions—all in one place, often with the company’s own name and signage on the facade. Corporate headquarters buildings vary widely in size—from smaller office buildings to headquarters spanning several thousand square meters, where offices, warehouses, and production facilities are all located under one roof.

That's why companies choose a corporate headquarters

Companies that grow large enough to occupy an entire building often choose a standalone property rather than sharing a building with other companies in a standard commercial lease.

This provides full control over the facade, signage, and interior design, ensuring that the building reflects the company’s brand and culture to the outside world. At the same time, it brings the entire organization together in one place, making it easier to coordinate operations and daily collaboration across departments. A company-owned property also offers greater flexibility to design the space precisely to the company’s needs, without having to consider other tenants in the same building, and it typically conveys a sense of stability and scale to customers and business partners who visit the address.

Here's what you need to know about a registered office

In the commercial real estate industry, a single-tenant property refers to a building that serves as the headquarters for a single company—as opposed to a multi-tenant property, where several companies share the same building. It is a popular choice for companies that have grown large enough to occupy an entire property and that want full control over the facade, signage, and interior design. Legally, the registered office is also the term that determines where your company is liable for taxes, and the physical property serving as the registered office is often also the location that functions as the company’s legal domicile.

Registered Office at Stensdal

If your company is looking for a property to serve as your headquarters, Stensdal offers a range of office properties in the Greater Copenhagen area—from smaller headquarters to office properties spanning several thousand square meters with space for offices, warehousing, and production all under one roof.

View our complete real estate portfolio, or contact our Asset Management team to find out if we have a residential property that meets your needs.

Frequently Asked Questions About Domicile

What is a domicile property?

A single-tenant property is a commercial property that serves as the headquarters of a single company and is used exclusively by that company—in contrast to a multi-tenant property, where several companies share the same building.

What is the difference between a registered office and a place of residence?

Residence is the place where you actually live. Domicile is the legal term for your permanent residence or place of domicile, which determines, among other things, tax liability and jurisdiction.

What does a registered office mean for a business from a tax perspective?

If your company is domiciled in Denmark, it pays tax on its income here. The domicile is typically the address where management is based and where operations are conducted—for example, your company’s own property.

Katrine Ildal Nielsen

Katrine is Head of Property & Asset Management at Stensdal, with over 15 years of experience in areas such as institutional real estate investment and international real estate companies. She brings a strategic and operational holistic perspective to issues related to leasing, operations, and portfolio development.

Read more about Katrine