By: Taylor Graveline

Florida offers more than just sunshine and beaches — it’s a rare mix of tax breaks, asset protections, and lifestyle perks that draw the nation’s wealthiest families. Here’s how to claim them the right way.

One crucial aspect of Florida’s appeal is the legal distinction between residence and domicile. While residence refers to where you live, domicile is the place that the law recognizes as your permanent home for tax, legal, and estate purposes. This distinction can have significant implications for your taxes, estate planning, and privacy. For high-net-worth families, understanding and establishing domicile in Florida is vital, as any missteps could lead to costly consequences.

Rob Edwards is a nationally recognized advisor and Managing Director at Edwards Asset Management who helps millionaire families navigate the complexities of their wealth – including the lifestyle, tax, and estate strategies that come with making Florida home.

Why Wealthy Homeowners Choose Florida

No matter how many homes you own, the law says you can have only one “domicile” – your official, permanent address. Choosing Florida as your primary address offers three major benefits: no state income tax, no estate or inheritance tax, and a homestead exemption that can lower your property tax bill and limit how much it can go up each year. 

“First, Florida has no state income tax. That means Social Security, pension, and IRA withdrawals are all state tax-free. I’ve seen clients save a lot of money each year, just by getting this part right,” Edwards says.

Florida’s constitution also shields your home and many retirement accounts from most creditor claims. That added protection draws entrepreneurs and investors looking for both growth and security.

Who Qualifies and Where People Get It Wrong

A beachfront address alone doesn’t make you a Floridian. Domicile depends on how many days you spend in Florida, whether you have claimed it as your permanent home, and whether you have the paperwork to prove it. Spending 183 days – half the year plus a day – in Florida is a strong start, but it is only the first step.

Rob Edwards emphasizes the difference: “Technically, anyone can file for Florida domicile. But establishing it and having it hold up, if challenged, is more than just owning a home here. You need to show that Florida isn’t just where you spend the winters. It has to be where you actually live your life most of the time.”

How to Establish Florida as Home

To show intent and create a clear paper trail, Edwards recommends taking these steps. Each one helps demonstrate that Florida is your permanent residence:

• File a Declaration of Domicile. This is a formal, recorded statement that Florida is your primary and permanent home.
• Claim the homestead exemption. This reduces your property taxes and limits how much they can rise each year, while also adding legal protections to your home.
• Get a Florida driver’s license and update your identification. Your ID should match your Florida address, and many states use this as proof of residency.
• Register to vote locally and take part in Florida elections. Voting in state and local elections shows active community participation.
• Transfer vehicle titles and registrations to Florida. This is another clear sign that Florida is your main base.
• Move professional service relationships such as doctors, financial advisors, and attorneys to a Florida address. Shifting your core services makes your life physically centered in the state.
• Join a Florida-based country club or community organization. Being part of local groups builds social ties and adds to the evidence that Florida is home.

Done right, these steps send a consistent message: Florida is not just a place you visit. It is where you live, work, and belong.

Proving You’re a True Florida Resident

“The state you’re leaving may not let you go easily, especially if it’s a high-tax state. They may argue that you never left and can hit you with unexpected audits, double taxation, and legal headaches you don’t want.” Edwards cautions.

New York, for example, treats anyone with a permanent home and 183 days in the state as a resident. Auditors can request cellphone location data and even private-jet flight logs. California uses an even broader “facts and circumstances” test that can include school records, medical visits, and social media posts.

To avoid these traps, Edwards advises clients to make lifestyle changes that match the paperwork they file. “Auditors don’t just go off of filed documents. They assess how you’re living your life. And if your actions tell a different story than the paperwork, that’s where problems tend to start.”

More Than a Move

Florida attracts about $39 billion in new adjusted gross income each year — nearly four times runner-up Texas.

“Florida has some of the strongest protections in the country for your home, retirement accounts, annuities, and life-insurance cash values. It’s one of the reasons so many high-profile businesspeople and celebrities move here. They’re not coming for the humidity and hurricanes. They want to protect what they have worked hard to build,” Edwards says.

For wealthy families, the real opportunity is making the move in a way that safeguards significant assets, supports the life you want today, and preserves your legacy for the next generation. Done right, claiming Florida domicile becomes a long-term strategy for living well at every stage of wealth – and enjoying the lifestyle you have earned without looking over your shoulder.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, tax, or financial advice. Consult with a qualified advisor or attorney to assess your specific situation before making any decisions related to domicile, taxes, or estate planning.