GDPR Data residency

Most of your core business activities are likely to be supported by a software solution which is totally normal. In oder to provide transparency, GDPR requires you to document which data elements are being processed for what purpose, and explicitly highlight if any personal data leaves the EU.

This regulation aims to ensure the privacy and security of individuals’ personal information by preventing it from being transferred to or processed in jurisdictions with weaker data protection standards.

Moreover, Data Residency requirements have significant implications for businesses and organisations that handle the personal data of EU residents, as they must carefully manage data storage and processing locations to comply with these stringent rules and avoid potential legal penalties.


Why is GDPR Data Residency Important?

  1. Data Privacy and Security: By enforcing data residency, GDPR ensures that personal information remains under the protection of robust EU data privacy laws, reducing the risk of unauthorised access or breaches.
  2. Compliance: Non-compliance with GDPR Data Residency requirements can lead to substantial fines. Therefore, making it essential for organisations to adhere to these regulations. Ignoring data residency can result in penalties of up to €20 million or 4% of the company’s global annual turnover.
  3. Trust and Reputation: Adhering to GDPR data residency rules not only keeps organisations on the right side of the law but also enhances their reputation as responsible custodians of sensitive data.

GDPR data residency – What to do if I’m not sure if the data resides in the EU?

Therefore, if you are unsure about where the data is stored and if it would leave the EU, do contact the software vendor or your reseller. If the data does reside in the EU or an equivalent country (see list here), then all can remain as is.
If this is not the case, we strongly advise to find a comparable software solution that does store its data in the EU or alternatively seek legal advise on the matter.


Compliance software for the SME – GDPRWise App

For more GDPR-related information, see our GDPR Knowledge Base, GDPR Questions and Answers or our post on GDPR Compliance checklist for the SME.

Also, feel welcome to check our Free GDPR Policy checker, in order to check if your Policy is compliant.