diff --git a/docs/book/src/topics/cloudstack-permissions.md b/docs/book/src/topics/cloudstack-permissions.md
index 73d20dc9..475522ae 100644
--- a/docs/book/src/topics/cloudstack-permissions.md
+++ b/docs/book/src/topics/cloudstack-permissions.md
@@ -1,6 +1,6 @@
 # CloudStack Permissions for CAPC
 
-The account that CAPC runs under must minimally be a Domain Admin type account with a role offering the following permissions
+The account that CAPC runs under must minimally be a User type account with a role offering the following permissions
 
 * assignToLoadBalancerRule
 * associateIpAddress
@@ -19,7 +19,6 @@ The account that CAPC runs under must minimally be a Domain Admin type account w
 * listAccounts
 * listAffinityGroups
 * listDiskOfferings
-* listDomains
 * listLoadBalancerRuleInstances
 * listLoadBalancerRules
 * listNetworkOfferings
@@ -39,4 +38,6 @@ The account that CAPC runs under must minimally be a Domain Admin type account w
 * stopVirtualMachine
 * updateVMAffinityGroup
 
+> Note: If the user doesn't have permissions to expunge the VM, it will be left in a destroyed state. The user will need to manually expunge the VM.
+
 This permission set has been verified to successfully run the CAPC E2E test suite (Oct 11, 2022).
\ No newline at end of file
diff --git a/pkg/cloud/instance.go b/pkg/cloud/instance.go
index f7564d3c..6fb5857f 100644
--- a/pkg/cloud/instance.go
+++ b/pkg/cloud/instance.go
@@ -452,15 +452,22 @@ func findVirtualMachine(
 
 // DestroyVMInstance Destroys a VM instance. Assumes machine has been fetched prior and has an instance ID.
 func (c *client) DestroyVMInstance(csMachine *infrav1.CloudStackMachine) error {
+	p := c.cs.Configuration.NewListCapabilitiesParams()
+	capabilities, err := c.cs.Configuration.ListCapabilities(p)
+	expunge := true
+	if err == nil {
+		expunge = capabilities.Capabilities.Allowuserexpungerecovervm
+	}
+
 	// Attempt deletion regardless of machine state.
-	p := c.csAsync.VirtualMachine.NewDestroyVirtualMachineParams(*csMachine.Spec.InstanceID)
+	p2 := c.csAsync.VirtualMachine.NewDestroyVirtualMachineParams(*csMachine.Spec.InstanceID)
 	volIDs, err := c.listVMInstanceDatadiskVolumeIDs(*csMachine.Spec.InstanceID)
 	if err != nil {
 		return err
 	}
-	p.SetExpunge(true)
-	setArrayIfNotEmpty(volIDs, p.SetVolumeids)
-	if _, err := c.csAsync.VirtualMachine.DestroyVirtualMachine(p); err != nil &&
+	p2.SetExpunge(expunge)
+	setArrayIfNotEmpty(volIDs, p2.SetVolumeids)
+	if _, err := c.csAsync.VirtualMachine.DestroyVirtualMachine(p2); err != nil &&
 		strings.Contains(strings.ToLower(err.Error()), "unable to find uuid for id") {
 		// VM doesn't exist. Success...
 		return nil
diff --git a/pkg/cloud/instance_test.go b/pkg/cloud/instance_test.go
index 839c0c1f..049882e2 100644
--- a/pkg/cloud/instance_test.go
+++ b/pkg/cloud/instance_test.go
@@ -46,19 +46,21 @@ var _ = Describe("Instance", func() {
 	unknownError := errors.New(unknownErrorMessage)
 
 	var (
-		mockCtrl   *gomock.Controller
-		mockClient *cloudstack.CloudStackClient
-		vms        *cloudstack.MockVirtualMachineServiceIface
-		sos        *cloudstack.MockServiceOfferingServiceIface
-		dos        *cloudstack.MockDiskOfferingServiceIface
-		ts         *cloudstack.MockTemplateServiceIface
-		vs         *cloudstack.MockVolumeServiceIface
-		client     cloud.Client
+		mockCtrl      *gomock.Controller
+		mockClient    *cloudstack.CloudStackClient
+		configuration *cloudstack.MockConfigurationServiceIface
+		vms           *cloudstack.MockVirtualMachineServiceIface
+		sos           *cloudstack.MockServiceOfferingServiceIface
+		dos           *cloudstack.MockDiskOfferingServiceIface
+		ts            *cloudstack.MockTemplateServiceIface
+		vs            *cloudstack.MockVolumeServiceIface
+		client        cloud.Client
 	)
 
 	BeforeEach(func() {
 		mockCtrl = gomock.NewController(GinkgoT())
 		mockClient = cloudstack.NewMockClient(mockCtrl)
+		configuration = mockClient.Configuration.(*cloudstack.MockConfigurationServiceIface)
 		vms = mockClient.VirtualMachine.(*cloudstack.MockVirtualMachineServiceIface)
 		sos = mockClient.ServiceOffering.(*cloudstack.MockServiceOfferingServiceIface)
 		dos = mockClient.DiskOffering.(*cloudstack.MockDiskOfferingServiceIface)
@@ -872,8 +874,12 @@ var _ = Describe("Instance", func() {
 	})
 
 	Context("when destroying a VM instance", func() {
+		listCapabilitiesParams := &cloudstack.ListCapabilitiesParams{}
 		expungeDestroyParams := &cloudstack.DestroyVirtualMachineParams{}
 		expungeDestroyParams.SetExpunge(true)
+		listCapabilitiesResponse := &cloudstack.ListCapabilitiesResponse{
+			Capabilities: &cloudstack.Capability{Allowuserexpungerecovervm: true},
+		}
 		listVolumesParams := &cloudstack.ListVolumesParams{}
 		listVolumesResponse := &cloudstack.ListVolumesResponse{
 			Volumes: []*cloudstack.Volume{
@@ -886,6 +892,11 @@ var _ = Describe("Instance", func() {
 			},
 		}
 
+		BeforeEach(func() {
+			configuration.EXPECT().NewListCapabilitiesParams().Return(listCapabilitiesParams)
+			configuration.EXPECT().ListCapabilities(listCapabilitiesParams).Return(listCapabilitiesResponse, nil)
+		})
+
 		It("calls destroy and finds VM doesn't exist, then returns nil", func() {
 			listVolumesParams.SetVirtualmachineid(*dummies.CSMachine1.Spec.InstanceID)
 			listVolumesParams.SetType("DATADISK")
diff --git a/pkg/cloud/user_credentials.go b/pkg/cloud/user_credentials.go
index d6d73225..e2201373 100644
--- a/pkg/cloud/user_credentials.go
+++ b/pkg/cloud/user_credentials.go
@@ -152,7 +152,8 @@ func (c *client) ResolveDomain(domain *Domain) error {
 // ResolveAccount resolves an account's information.
 func (c *client) ResolveAccount(account *Account) error {
 	// Resolve domain prior to any account resolution activity.
-	if err := c.ResolveDomain(&account.Domain); err != nil {
+	if err := c.ResolveDomain(&account.Domain); err != nil &&
+		!strings.Contains(err.Error(), "The API [listDomains] does not exist or is not available for the account Account") {
 		return errors.Wrapf(err, "resolving domain %s details", account.Domain.Name)
 	}