I'm a European in the US thinking of moving back — where do I start financially?
Short answer: Financial repatriation for Europeans depends on two dates: when you stop being a US tax resident and when you start being resident in your home country. Success requires mapping US assets—RSUs, 401(k)s, and property—against the relevant tax treaty, checking your green card's 'long-term resident' status, and sequencing disposals to avoid double taxation.
Written and reviewed by Anthony Walsh, Selanis. Last reviewed 2026-10-06.
Why it works this way
The transition is not just a physical move; it is a shift between two tax systems that often disagree on timing. The US taxes on a calendar year, while your home country might use a split-year or whole-year basis. Because the US retains the right to tax income earned while you were resident, you often face 'trailing' liabilities on stock vestings and bonuses that arrive after you have already landed in Europe.
Green card status is the most common trap. Unlike visa holders who stop being US taxpayers when they leave and meet the 'closer connection' test, green card holders remain US taxpayers until they formally abandon their status (Form I-407). If you have held a green card for 8 of the last 15 years, you may also be subject to the US exit tax, which treats your global assets as sold on departure.
Brokerage access often disappears the moment you update your address. Many US brokers (like Vanguard or Fidelity) may restrict or close accounts for residents of the EU/EEA due to MiFID II regulations. Establishing a cross-border-friendly account, like Interactive Brokers or a specialized Schwab International account, is usually a prerequisite for a smooth transition.
The expensive mistake: Leaving the US with an active green card and assuming tax residency ended
If you move back to Europe but keep your green card in your drawer, the IRS still considers you a US tax resident. You remain liable for US tax on your global income, FBAR reporting, and PFIC disclosures. You must formally abandon the card using Form I-407 to stop the US tax clock, though doing so can trigger the exit tax if you are a long-term resident.
What to do
- Check your 'long-term resident' status for exit tax — Count how many years you have held your green card. If it is 8 or more out of the last 15, you need an exit tax analysis before you leave.
- Inventory RSUs and options for trailing tax — List all unvested equity. Both the US and your home country will likely want a share of the tax based on where you were when the equity was earned.
- Open a cross-border brokerage account — Ensure you have an account that accepts EU residents before you lose your US residential address, to avoid being 'locked out' of your investments.
Related questions
- What's the right order to do everything financially when moving back to Europe from the US?
- I have a green card and I'm moving back to Europe — does the US exit tax apply to me?
- Will my US brokerage close my account when I move back to Europe?
- What happens to my money when I move back to the US after years abroad?