According to the Kabbalah, the demons dwell in the world of Assiah, the world of matter and of the "shells"’ of the dead. They are the Klippoth. There are Seven Hells, whose demon dwellers represent the vices personified. Their prince is Samael, his female companion is Isheth Zenunim - the woman of prostitution: united in aspect, they are named "The Beast", Chiva.
But note what we read in the Zohar (ii.43a) "For the service of the Angelic World, the Holy. . . . made Samael and his legions, i.e., the world of action, who are as it were the clouds to be used (by the higher or upper Spirits, our Egos) to ride upon in their descent to the earth, and serve, as it were, for their horses". This, in conjunction with the fact that Q’lippoth contains the matter of which stars, planets, and even men are made, shows that Samael with his legions is simply chaotic, turbulent matter, which is used in its finer state by spirits to robe themselves in.