Tenant Migration

How to Migrate Microsoft 365 Users and Licenses to Separate Tenants

Huma Ashraf Ch Oct 1, 2026 868 views

Question details

The user needs to migrate users and licenses from a single Microsoft 365 tenant to multiple separate Microsoft Entra tenants.

How to Migrate Microsoft 365 Users and Licenses to Separate Tenants

Product: Microsoft 365
Device & OS: not provided
Scenario: Separating users from multiple companies into their own dedicated Microsoft 365 and Microsoft Entra tenants.
Observed behavior: There is no direct option or portal command in the Microsoft 365 admin center to move existing users or transfer licenses between different directories or tenants.

Before you start

Before starting the migration, ensure you have Global Administrator credentials for both the source and destination Microsoft 365 tenants and a well-structured cross-tenant migration plan.

Solution 1Recommended

Manually Recreate Users and Repurchase Licenses in the New Tenant

Since Microsoft does not support direct transfers of users and licenses between tenants, you must recreate the environment in the destination tenant and assign newly purchased licenses.

Microsoft 365 does not offer a single button or command to move users and their active licenses from one tenant to another. Instead, administrators must manually set up the destination tenant, create the users, and provision new licenses.

Set up the destination tenant

Log in to the destination Microsoft 365 admin center as a Global Administrator and configure your target domains and Exchange Online settings.

Purchase new licenses

Navigate to Billing > Purchase services in the new tenant's admin center, select the required Microsoft 365 subscriptions, and buy the necessary licenses.

Create user accounts

Go to Users > Active users in the destination tenant and recreate the user profiles. The accounts will initially use the format user@tenant-name.onmicrosoft.com.

Assign licenses to users

Select the newly created users under Active users and assign the licenses you just purchased to activate their services.

Migrate user data

Use native cross-tenant mailbox migration tools or third-party migration software to move emails, OneDrive files, and SharePoint data from the old tenant to the new one.

Manually Recreate Users and Repurchase Licenses in the New Tenant

Important consideration: The old licenses in the source tenant will not transfer automatically. You must cancel them separately after the migration is complete to avoid paying for both subscriptions.

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Frequently Asked Questions

Can I transfer my existing Microsoft 365 licenses to a different tenant?

No, Microsoft 365 licenses cannot be transferred directly between separate tenants. You must purchase new licenses in the destination tenant and cancel the overlapping ones in the source tenant once the migration is complete.

Why can't I see the newly created users in the destination admin dashboard?

Ensure you are signed in to the correct Microsoft 365 admin center using the administrator credentials for the new destination tenant. User accounts created there will initially appear under the format user@tenant-name.onmicrosoft.com.

Which portal should I use to buy licenses for the new tenant?

You should use the Microsoft 365 admin center. Log in as a tenant administrator for the destination tenant, navigate to the Billing section, and select Purchase services to add subscriptions.

Does Microsoft provide a native tool to move users automatically?

There is no simple portal command to move users across directories. You must execute a structured cross-tenant migration plan, which involves recreating accounts and using PowerShell or native/third-party tools to migrate the actual data.

Migration & Recovery