Geolocational Variables in TLDs
When a client attempts to purchase a domain name, the registar receives the order containing the specifications of the individual who tries to purchase the specific domain. According to international law, individuals who are not part of the country that the domain indicates the geolocational position, are not eligible to purchase it. For example, an individual who is located in United States and his company as well, can not purchase a domain .eu that represents a location in Europe.
Specifically for Europe:
The eligibility criteria for registering a .EU domain name is as listed below:
An EU citizen, independent of their place of residence.
A natural person who is not an EU citizen and who is a resident of a Member State.
An undertaking that is established in the EU or
An organisation that is established in the EU, without prejudice to the application of national law.
Certain names have been reserved by the European Commission for its own use or for use by the Community institutions and bodies.