Expanding to the EU? Here's What You Need to Get Right Before You Start.

Several of our clients are in the same spot right now: US-based, growing fast, and looking at the EU as the next market. The product is ready. The demand is there. And then someone on the team asks, "What do we need to do from a compliance perspective?"

The answer is more than most founders expect but less overwhelming than most lawyers make it sound. Here's the practical breakdown.

If you're selling to, serving, or tracking the behavior of people in the EU, GDPR applies. You don't need an office in Europe. You don't need a subsidiary. If your website collects cookies from EU visitors, if your SaaS product has EU users, or if your analytics track EU behavior, you're in scope.

GDPR is the big one. Fines go up to 4% of global annual revenue or €20 million, whichever is higher. The EU has shown it's willing to enforce: Meta got hit with a €1.2 billion fine in 2023. This isn't theoretical.

Here's what GDPR requires in practice:

If you're processing EU personal data without a physical establishment in the EU, Article 27 of GDPR requires you to appoint an EU Representative. This is a local point of contact for EU data subjects and supervisory authorities.

This is separate from a Data Protection Officer. The EU Rep is your address in the EU. The DPO is the person who oversees your data protection program.

Do you need a DPO? Maybe. It's required if your core activities involve large-scale processing of sensitive data (health data, biometric data) or large-scale regular monitoring of individuals. For most SaaS companies under 200 employees, a DPO isn't mandatory but some enterprise EU customers will ask if you have one.

Both roles can be outsourced. You don't need to hire someone in Berlin. But you do need someone who knows EU privacy law and can actually respond to inquiries.

If your product uses AI and you're selling it in the EU, the EU AI Act applies to you. This is the world's first comprehensive AI regulation and it has teeth.

The timeline that matters right now:

The practical takeaway: inventory every AI feature in your product. Classify each one under the EU AI Act risk tiers. Handle the transparency requirements immediately. Start preparing for high-risk requirements if they apply to your use case.

Some EU customers, especially in healthcare, financial services, and government, will require that their data stays in the EU. This means you need EU-region deployment options.

If you're on AWS, Azure, or Google Cloud, this is straightforward: deploy in an EU region (Frankfurt, Ireland, Paris, etc.) and ensure data doesn't replicate to US regions. But it's not just your primary database. Think about logs, backups, analytics, CDN caches, error reporting, and any third-party tool that processes the data. All of it needs to stay in the EU if data residency is a requirement.

This doesn't apply to every customer, but it will come up in enterprise deals. Have the architecture ready before the first prospect asks.

The NIS2 Directive expanded cybersecurity requirements across the EU for essential and important entities. If your product serves healthcare, energy, transport, banking, digital infrastructure, or public administration in the EU, NIS2 may apply to your EU customers and they may flow requirements down to you as a vendor.

NIS2 requires risk management measures, incident reporting within 24 hours, supply chain security, and board-level accountability. If your EU customers are subject to NIS2, expect them to ask about your security posture, incident response capabilities, and supply chain controls during procurement.

The European Accessibility Act took effect in June 2025 and applies to products and services sold in the EU including websites, mobile apps, e-commerce platforms, and digital services. If your product is available to EU consumers, it needs to meet EN 301 549 accessibility standards, which align closely with WCAG 2.1 Level AA.

If you've already done accessibility work for Section 508 or ADA compliance in the US, you're most of the way there. If you haven't, this is another requirement to add to the list.

In the US, SOC 2 is the standard that enterprise buyers ask for. In Europe, it's ISO 27001. European enterprise customers, especially in healthcare, financial services, and government, expect ISO 27001 certification. SOC 2 reports are recognized but they're not the default.

If you're planning to sell into EU enterprises, plan for ISO 27001 certification. If you already have SOC 2, the gap isn't massive. The frameworks overlap significantly on security controls. But the certification process is different and you'll need to build an Information Security Management System that conforms to the ISO standard.

Before you start operating in the EU:

• Determine whether GDPR applies. It almost certainly does if you're targeting EU customers.
• Update your privacy policy for GDPR compliance. Add EU-specific disclosures, data subject rights information, and lawful basis documentation.
• Set up data transfer mechanisms. Self-certify under the EU-US Data Privacy Framework. Put Standard Contractual Clauses in place as backup.
• Get DPAs signed with every vendor that processes EU data.
• Appoint an EU Representative under Article 27 if you don't have an EU establishment.
• Evaluate whether you need a DPO. If you process health data or monitor individuals at scale, you probably do.
• Inventory your AI features and classify them under the EU AI Act. Handle transparency obligations now.
• Set up EU data residency options if your target customers will require it.
• Review ISO 27001 readiness. If you have SOC 2, start the gap analysis.
• Check accessibility compliance against EN 301 549 / WCAG 2.1 AA.
• Understand NIS2 if your customers are in critical sectors.

Expanding to the EU is a revenue opportunity. The compliance requirements are real but manageable if you plan ahead. The companies that build this into their expansion timeline come in ready for procurement conversations. The ones that figure it out after they've already started selling end up retrofitting under deal pressure, which costs more and takes longer.

If you're planning an EU expansion and don't know where to start, that's exactly what we help with.