TL;DR:Maybe. Selling before you move may help you reduce taxes and simplify compliance—but it depends on your capital gains, timing, and India’s global income rules. Here’s what IndianH1Bvisa holders need to consider.
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Introduction: Repatriation Meets Capital Gains
You’re getting ready to move back to India. You have a portfolio of U.S.stocks, ETFs, maybe some optionsorRSUs. Should you sell now or wait? Is there a tax-smart move to make?
Let’s walk through the timing, taxation, and strategy ofliquidating(or holding) U.S. investments before your move.
I. U.S. Capital Gains Tax: The Basics
If held >12 months: taxed at long-term capital gains rates (0%, 15%, 20%)
If <12 months: taxed as ordinary income
U.S. non-residents still owe capital gains tax on certain assets
Tip:Gains on U.S. stocks typically not taxed for non-resident aliens—but timing matters.
II. India’s Take on Your U.S. Stocks
WhileRNOR: India doesn’t tax foreign capital gains
Once fully resident: India taxesallcapital gains (foreign or domestic)
Conversion rates and timelines impact your tax basis
III. Should You Sell Before You Leave?
Pros:
Lock in long-term gains under favorable U.S. rates
Avoid India’s future tax on the same
Simplify reporting
Cons:
May trigger a big tax bill in the current year
Market timing risk
Loss of future upside
IV. Partial Sell Strategy
Consider selling some assets while still U.S. tax resident
Offset gains withtax-loss harvesting
Retain core positions if long-term upside is strong
V. Watch for These Pitfalls
Selling after you change tax residency
Missing the RNOR window
Not documenting cost basis for Indian tax returns
Forgetting to convert USD toINR for ITR
FAQs: Selling U.S. Stocks Before Moving to India
Is it better to sell U.S. stocks before or after moving to India?
Often before—selling as a U.S. resident may help you avoid Indian capital gains tax later. But check timing and tax brackets.
Will India tax my U.S. stock sales?
Yes, once you are fully resident in India, global capital gains—including U.S. stocks—are taxable there.
Can I keep my U.S. brokerage account after moving to India?
Yes, but some brokers limit trading if your address is outside the U.S. You may be able to hold but not actively trade.
How does the RNOR status affect stock sales?
During the RNOR period, India typically won’t tax foreign capital gains. This window is key for tax efficiency.
Final Thoughts
Selling your U.S. stocks before moving to India isn’t just a financial decision—it’s a cross-border tax strategy. Start early, stay organized, and make informed moves.
Find a cross-border financial advisor via Sam’s List →
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- Rodriquez Wealth Management - Our dedicated team offers a highly personalized approach that helps you simplify the challenges associated with preserving, growing, and transitioning your wealth.
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Author: Kimi, Co-founder of Sam’s List
Kimi writes about what she's learning while building Sam’s List and shares honest takeaways from her conversations with accountants and financial advisors across the country. None of this is financial advice—just the stuff most people wish someone told them sooner.
