How GDPR Affects EU Citizens Living in the US: Key Legal Insights

The GDPR (General Data Protection Regulation) is one of the most comprehensive privacy regulations in the world. Enforced in 2018, it governs how companies collect, store, and use personal data from EU citizens. While most people are aware that the GDPR protects EU citizens within Europe, fewer realize that the regulation can extend beyond European borders — including to EU citizens living in the United States.

In this blog, we’ll break down when and why the GDPR still applies to EU citizens in the US, and what businesses need to do to stay compliant.

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Does the GDPR Apply to EU Citizens in the US?

Yes, the GDPR can apply to EU citizens living in the US, but the situation is nuanced. The GDPR is designed not just to regulate data processing within the EU, but also to protect EU citizens’ personal data no matter where that data is being processed. This extraterritorial scope is one of the regulation’s key features, and it applies to businesses that target or monitor individuals based on their location, even if the business is outside the EU.

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Global Scope of the “Data Subject” Under GDPR

A fundamental aspect of GDPR compliance is understanding the concept of a "data subject." As defined in Article 4, a data subject is a natural person who can be identified, either directly or indirectly, through personal data such as their name, ID number, or other identifiable information.

The application of GDPR is not typically determined by an individual’s citizenship or where they live. The regulation offers protection to anyone whose data is processed while they are physically present in the European Union.

This includes, for instance, US citizens visiting landmarks like the Cliffs of Moher in Ireland. However, an EU citizen who has moved to the US may not automatically be entitled to GDPR protections unless the processing of their data occurs within the EU.

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Limitations and Exclusions: What GDPR Does Not Cover

It’s also important to recognize where the GDPR’s jurisdiction ends. The regulation does not apply in the following cases:

• Personal or Domestic Use: Data processing by individuals for personal or household activities is outside the scope of GDPR.
• Unintentional Data Processing: If a business in the US processes data from EU residents incidentally, without targeting or offering services to them in the EU, GDPR obligations may not apply.

These exclusions help ensure that businesses aren’t overwhelmed by compliance requirements when their operations do not involve or target the EU market.

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When Does GDPR Apply to EU Citizens in the US?

The Data is Processed by a Business in the EU/EEA

If an EU citizen’s personal data is processed by an organization based in the EU or EEA (European Economic Area), the GDPR applies regardless of the individual’s location. So, even if they move to the United States, any personal data processed by these businesses will still be subject to GDPR protections.

The Data is Collected for Offering Goods or Services to EU Citizens

The GDPR also applies to businesses outside the EU if they process data in connection with offering goods or services to EU citizens. For example, a US-based e-commerce store that targets EU citizens with advertisements or provides them with products or services would be required to comply with GDPR — even if the user is now residing in the US.

The Data is Used for Monitoring the Behavior of EU Citizens

If a US-based company is involved in tracking the behavior of an EU citizen — such as through cookies or behavioral advertising — the GDPR applies. The regulation holds organizations accountable for any profiling or data processing that is focused on the individual’s behavior within the EU.

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What Does This Mean for Businesses?

For businesses based in the US or anywhere outside the EU, the GDPR can still impose significant compliance requirements if they handle the personal data of EU citizens. This could include data from EU citizens who have moved to the US.

How can US businesses ensure they comply with GDPR when processing data from EU citizens?

US businesses that handle the data of EU citizens or target EU residents must follow GDPR rules. Key steps for compliance include:

• Tracking how personal data is collected and processed through data mapping
• Using Standard Contractual Clauses (SCCs) to manage cross-border data transfers between the EU and the US
• Appointing an EU Representative if required under Article 27
• Implementing a consent management platform (like CookiePal) to obtain explicit consent from users
• Providing a clear, transparent privacy policy

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Final Takeaway

If you process the personal data of EU citizens living in the US, the GDPR can still apply. Understanding when and how the regulation impacts your business is crucial for compliance. Make sure to obtain clear consent, update your privacy practices, and be transparent about how you handle user data.

By staying compliant, you not only avoid fines but also enhance your reputation as a business that values user privacy. And with the privacy landscape continuing to evolve, ensuring that your business remains GDPR-compliant is more important than ever.

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Sources

• GDPR.eu
• EDPB Guidelines
• Standard Contractual Clauses (SCCs) for Cross-Border Data Transfers