Do I still file US taxes after moving back to Europe as a non-citizen?
Short answer: You must file US taxes for the year you leave (as a dual-status alien) and in future years if you have US-source income like RSUs, US rental income, or if you still hold a green card. If you are a 'long-term' green card holder, you may also have a final expatriation filing requirement (Form 8854).
Written and reviewed by Anthony Walsh, Selanis. Last reviewed 2026-10-06.
Why it works this way
The 'Substantial Presence Test' determines your US tax residency for the year you leave. If you were in the US for more than 183 days (weighted over 3 years), you are a US resident for the whole year unless you qualify for the 'Closer Connection Exception' or a treaty-based residency claim. Most people file a 'dual-status' return for their exit year.
Green card holders are treated like US citizens for tax purposes. Even if you live in Europe, you must file a 1040 and report worldwide income until you formally abandon your green card by filing Form I-407. Simply letting the card expire is NOT enough to end your US tax obligations; the IRS will still expect a return.
Trailing income—like RSUs that vest after you move or a bonus paid for US work—remains US-source income. You will need to file Form 1040-NR (Non-Resident) to report this income and pay the corresponding US tax. Failure to file can lead to the IRS seizing your US-based assets or withholding 30% on your US dividends without treaty relief.
The expensive mistake: Thinking that moving home automatically ends US tax residency
For visa holders (H-1B, O-1, L-1), residency usually ends when you leave and no longer meet the presence test. But for green card holders, it ONLY ends when you file Form I-407. Many Europeans return home, start their new lives, and only discover years later that the IRS still considers them 'tax residents' with years of back-filing and FBAR penalties due.
What to do
- File Form I-407 if you are a Green Card holder — This is the only way to formally end your status and your obligation to report worldwide income to the IRS.
- Determine your 'Dual-Status' filing for the exit year — Work with a cross-border CPA to split your tax year between resident and non-resident status to minimize tax on your European income.
- Monitor trailing US-source income — If you have unvested RSUs or US rental property, plan for an annual 1040-NR filing for several years after your move.
Related questions
- I have a green card and I'm moving back to Europe — does the US exit tax apply to me?
- When do I stop being a tax resident of the country I am leaving?
- What happens to my unvested stock options and RSUs when I move back to Europe?
- Will I pay an exit tax when I leave a European country to move back to the US?