The two are interchangeable if you intend a continuative† reading: that you have lived in Europe for the two years leading to the present moment.
okI have lived in Europe for two years, and will not leave until next year.
okI have been living in Europe for two years, and will not leave until next year.
But if you intend an existential† reading, signifying that you lived in Europe for two years on at least one occasion in the past, you cannot use the progressive construction:
okI am widely travelled: I have lived in Europe for two years, in Brazil for nearly five, and in Singapore for three. BUT
∗ I am widely travelled: I have been living in Europe for two years, in Brazil for nearly five, and in Singapore for three.
†For a somewhat more detailed description of these distinct uses of the perfect, see What is the perfect, and how should I use it?, especially §3.2 Pragmatic meaning.
∗ marks an utterance as unacceptable
Where are you? is asking where one is right now. Generally, it implies that the querent and the respondent are in different locations, and the querent wishes to know the respondent's present location.
Where have you been? is asking where one was at a recent time in the past, over an undefined period. It implies nothing about the current location of either the querent or the respondent. It does imply that the querent expected the respondent to be somewhere at a specific time, but the respondent was not at the appointed place at the appointed time.
Example
(Q is Querent, R is Respondent.)
(Q is talking to R over the telephone. They have planned to meet at the train station at a specific time.)
Q: I'm at the ticket concourse, and I don't see you. Where are you?
R: Oh, I must have misunderstood you when we agreed to meet - I'm on the platform. Stay there, I'll come over to you.
(Q is Querent, R is Respondent.)
(Q is a parent, waiting at home for R, a minor, who has just returned from seeing friends - later than R had promised to be home.)
Q: I thought you were to be home by nine-o-clock! Where have you been?
R: I'm sorry; we went to the Burger Barn after getting out of the movie, and just lost track of the time talking about stuff.
Best Answer
They are both OK English.
'Where are you living?' would be used more often when you know the other person is living somewhere temporarily for some reason, or does not have a fixed home. The verb form is the present continuous which we can use to talk about something which we think is temporary, for example: I'm working in London for the next two weeks.
'Where do you live?' would be used for a general enquiry about a person's home location, and uses the simple present.