Residency was never even a thought until Darian's Folly made it necessary.— Shiv Moonsong
A resident is a person who maintains a non-exclusive home, of either a permanent or temporary nature, on an island within a nation or independent state. Residency determines, among other things, a person's available level of basic income, as well as the taxes and fees that are paid on goods and services while away from home.
Maintain a home
This means that simply owning a garden is not enough, nor can it be a run-down shack incapable of keeping the rain off of a flea. It must be a properly functional living space (sanitation, power, climate control), and it must be occupied at some point during every year.
On an island
Ships do not provide residency, even on the island which hold's the ship's papers (that is, the island with the ship's home port, where its official charter is kept).
Exception: the ship's captain, first mate, and quartermaster are considered residents of the ship's home island AND any island at which the ship is currently docked.
Yes, this means that docked ships are subject to whatever rights and responsibilities of a physical residence on that island, with the exception of meeting certain land-based building requirements (foundation, chimney, etc.)
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