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Eurasian Red Squirrels live in Europe and Asia, and Grey Squirrels live in the USA. Other than that, there really is no difference between them, only their color.

Addendum to above answer:

Actually, it depends on which type of Red Squirrel you are referring to. There is an Eurasian Red Squirrel which is native to Europe and Asia, and there is an American Red Squirrel as well. Both the Eurasian and American Red Squirrels are smaller than Grey Squirrels with the only other differences being the difference in the color of fur and the fact that Eurasian Red Squirrels have ear tufts that neither the American Red Squirrel or the Grey Squirrel have.

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