Understanding Your Vesting Schedule Abroad
Your RSU vesting schedule works the same regardless of where you live. What changes is the tax treatment and currency considerations.
- Vesting dates remain fixed based on your grant agreement
- The number of shares vesting doesn't change with location
- Stock price (and thus value) is determined by the market, not your location
Employment Status Considerations
Your employment structure can affect RSUs in several ways:
Direct Employee
If you're a direct employee of the US company (even working abroad), RSUs typically work as normal. The company may use an EOR (Employer of Record) to handle local employment law.
Contractor
If you transition to contractor status, check your equity agreement. Some companies don't grant RSUs to contractors, or may have different vesting terms.
Local Subsidiary Employee
If you're employed by a local subsidiary, RSU grants typically still come from the parent company. The structure may affect tax withholding.
Currency Exposure
Most RSUs from US companies are denominated in USD. If you live abroad with expenses in another currency, you have currency exposure:
- USD strengthens: Your RSUs are worth more in local currency
- USD weakens: Your RSUs are worth less in local currency
Some expats manage this by converting vested shares to local currency on a regular schedule rather than trying to time the market.
What CompCalc Helps With
Our calculator lets you:
- View your compensation in multiple currencies
- See year-by-year vesting breakdown
- Model different stock price scenarios
- Understand total compensation over time
Important: This calculator does not provide tax advice. Tax treatment of RSUs varies significantly by country and personal circumstances. Consult a tax professional familiar with your situation.
Frequently Asked Questions
What happens to my RSUs if I relocate to another country?
Your RSUs typically continue vesting regardless of location. However, the tax treatment may change based on where you're residing when shares vest. Consult a tax advisor before relocating.
Are my RSUs still valid if I become a contractor instead of an employee?
This depends on your company's policies. Some companies allow RSUs to continue vesting for contractors, while others may accelerate vesting or cancel unvested shares. Check your equity agreement.
How do I handle currency exposure with RSUs?
RSUs vest in the company's stock (usually traded in USD). If your expenses are in another currency, you have exchange rate exposure. Some people sell vested shares and convert to local currency regularly to manage this risk.