Azure Tenant to Tenant Migration

Yep - AFAIK, an Azure subscription can be transferred between tenants in different data residency geographies using the Change Directory button. Transferring a subscription merely reassociates the subscription's trust relationship with a different Microsoft Entra ID tenant. This action changes which tenant manages identities, role assignments, and billing, but it does not physically move the underlying resources or change their hosting region.

The tenant geography refers to where directory metadata is stored, while the resource region refers to the data center where your actual services, such as virtual machines or storage accounts, reside. If your resources are currently in a LATAM region, they will remain in that LATAM region even after the subscription is moved to a tenant based in Europe. Consequently, if your objective is to move the data itself to a different geography for compliance or residency reasons, the Change Directory button will not achieve this; in that case, you would indeed need to migrate or rebuild resources in a new region.

When you perform this transfer, you must be prepared for the immediate loss of all identity-related configurations. All RBAC assignments and custom roles are permanently deleted during the move. Additionally, system-assigned and user-assigned managed identities will break and must be reconfigured or recreated in the target tenant. While the resources themselves remain operational and do not experience downtime, any management scripts or tools relying on the old tenant's security principals will cease to function until updated.

To initiate the process, you must have Owner permissions on the subscription in the source directory and sufficient administrative permissions in the destination directory. After the transfer, only the user who accepted the transfer in the new tenant will initially have access to manage the resources, and they must manually re-grant permissions to other users and service principals.

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hth

Marcin