What's the right order to do everything financially when moving back to Europe from the US?
Short answer: Success depends on a 12-month sequence: 12 months out, analyze exit tax and choose your 'landing' date. 6 months out, consolidate US accounts and begin currency staging. 3 months out, sell US property and vested RSUs if the tax rate is favorable. In the final month, file Form I-407 and update your address with US banks.
Written and reviewed by Anthony Walsh, Selanis. Last reviewed 2026-10-06.
Why it works this way
The order of events determines which country taxes which dollar. A large stock sale on the wrong side of your 'residency start date' can cost tens of thousands in extra tax. By setting your arrival date first, you create a deadline for all 'US-only' transactions—like selling a house or taking a 401(k) distribution—to be completed.
Administrative lead times are the biggest bottleneck. Opening a cross-border brokerage account, abandoning a green card, or getting a French 'bilan patrimonial' can take months. If you wait until you are packing boxes, you will likely miss windows of opportunity for tax optimization or be forced to move with 'frozen' US accounts.
The 'trailing' year is the most complex. Even after you move, you will likely have one final year of dual-status US filing and your first full year of European filing. Coordination between your US and European tax advisors is essential during this 24-month window to ensure foreign tax credits are claimed correctly and double taxation is avoided.
The expensive mistake: Treating the move as a 'clean break' on the day of the flight
European tech workers often have unvested equity, trailing bonuses, and lingering US bank accounts. These ties mean your US tax life continues for 1-3 years after you land. Failing to plan for this 'tail' leads to surprise IRS notices, penalties for late 1040-NR filings, and difficulty reclaiming withheld taxes.
What to do
- 12 Months Out: The 'Exit Tax' and Residency Audit — Determine if you are a 'long-term resident' for US exit tax and set your formal US departure date to align with the best tax outcome.
- 6 Months Out: Portfolio and Bank Consolidation — Move your investments to an international-friendly custodian (like Interactive Brokers) and begin converting USD to EUR in stages.
- 3 Months Out: Property and Equity Liquidation — Complete the sale of your US home and any vested shares you don't want to bring into the European tax net.
| When | Action | Goal |
|---|---|---|
| T-12 Months | Check 8-year Green Card rule | Avoid or plan for US Exit Tax |
| T-9 Months | Choose European 'Landing' Date | Define the residency shift for tax |
| T-6 Months | Open IBKR / Schwab Intl account | Maintain investment access in Europe |
| T-3 Months | Sell US Real Estate / Vested RSUs | Utilize US tax exclusions and lower rates |
| Departure | File Form I-407 (if applicable) | Formally end US tax residency |
| T+6 Months | File Dual-Status US Return | Reconcile US and European taxes |