Should I sell my RSUs before leaving the US?
Short answer: Deciding whether to sell RSUs depends on the tax rate differential between the US and your destination country. Generally, selling vested shares while a US resident ensures you pay US capital gains rates (often lower than European rates) and avoids complex foreign reporting. However, unvested RSUs will likely be taxed proportionately by both countries based on work days.
Written and reviewed by Anthony Walsh, Selanis. Last reviewed 2026-10-06.
Why it works this way
RSUs are taxed twice: once at vesting (as ordinary income) and again at sale (as capital gains). If you vest while in the US, the US taxes the full value. If you then move to Europe and sell, your new home country may tax the gain from the vest price to the sale price. If the European capital gains rate is higher than the US rate, selling before you leave often saves money.
Unvested RSUs are more complex. Most tax treaties (like the US–France or US–Germany treaties) allocate taxing rights based on where you performed the work during the vesting period. If you worked in the US for 3 years of a 4-year vest and move to Europe for the final year, the US will claim 75% of the income, and your home country will likely claim 100% while offering a credit for the US portion.
The 'basis' of your shares matters for European reporting. Some European countries may not recognize the US 'step-up' in basis at vesting, or they may calculate gains using different methods (like average cost vs. FIFO). Selling before departure eliminates this administrative burden and ensures the gain is captured under a single, known tax regime.
The expensive mistake: Assuming the US stops taxing RSUs the day you fly home
The IRS taxes income earned for services performed in the US. If you move back to Europe, any RSUs that vest afterwards but were 'earned' while you were in the US remain subject to US withholding and taxation. You will need to file a US non-resident return (1040-NR) to report this trailing income.
What to do
- Compare the capital gains rates — If your home country (e.g., France or Germany) has a higher capital gains rate than the US, consider selling vested shares before your residency changes.
- Track your 'US work days' for unvested equity — Your employer will need this data to correctly calculate trailing US withholding on future vests after you move.
- Check for 'exit charges' on shares — While the US exit tax applies only to certain green card holders, ensure your home country doesn't have rules that hit newly arrived residents with large unrealized gains.