I both have a European and an US drivers license and I'm currently living and working in the US, I still have my European passport. I would like to rent a car during the holidays back in Europe, can I rent a car stating that I'm a resident of EU with my European drivers license or do I need to state that I'm a US resident (and pay higher insurance prices)
If you are living and working in the US then you are not a resident of the EU. Telling the rental company that you are leaves your self open to problems. It may invalidate the contract and any insurance you take out. On the other hand that is no reason not to present your EU driver's license If it is valid.
I also doubt that your residency makes a big difference to the price.
After calling multiple car rental places and explaining the situation they told me that you are able to rent a car using your EU drivers license and taking advantage of better pricing options through local branch websites, as long as you give them your US address when you book and present your EU license at the counter