Updated for 2025: How to build a compliant Data Processing Agreement with SCCs and Transfer Impact Assessments
Table of Contents
Introduction
If your company processes personal data on behalf of another organization and transfers it internationally, a Data Processing Agreement (DPA) is required under GDPR and UK GDPR. In 2025, compliance demands more than a basic DPA. You need to integrate it with Standard Contractual Clauses (SCCs) or the UK’s International Data Transfer Agreement (IDTA), and conduct a Transfer Impact Assessment (TIA) – a critical step post-Schrems II.
This article explains what a compliant DPA bundle looks like in 2025, provides a practical template overview, and shares tips for privacy and legal teams to streamline global data transfers.
What is a Data Processing Agreement (DPA)?
A Data Processing Agreement is a contract between a data controller and a data processor outlining how personal data should be handled. It is mandatory under Article 28 of the GDPR.
Key elements of a DPA include:
Description of processing activities
Obligations and rights of processor and controller
Security measures
Conditions for subcontracting
Data breach notification procedures
International data transfer provisions
What Are Standard Contractual Clauses (SCCs) and When Do You Need Them?
Standard Contractual Clauses (SCCs) are pre-approved contractual clauses that establish safeguards for international data transfers to countries without an EU adequacy decision.
The current SCCs were updated in 2021 (Commission Implementing Decision 2021/914).
SCCs have four modular versions depending on the roles of parties (controller-controller, controller-processor, etc.).
SCCs can be appended as an annex to your DPA for clarity and compliance.
For UK-based transfers:
Use the UK IDTA or the UK Addendum to EU SCCs since the UK is no longer part of the EU.
What is a Transfer Impact Assessment (TIA), and Why Is It Important?
The Transfer Impact Assessment (TIA) is a risk-based analysis of the legal environment in the recipient country where data is transferred.
Originated after the 2020 Schrems II ruling by the Court of Justice of the European Union (CJEU).
The ruling requires organizations to verify that data protection in the recipient country is adequate or supplemented by contractual and technical safeguards.
The European Data Protection Board (EDPB) recommends conducting a TIA before relying on SCCs.
A typical TIA covers:
The destination country’s surveillance laws
Government access risks
Security measures in place (encryption, pseudonymization)
Data category sensitivity
How to Build Your 2025 DPA Compliance Toolkit
1. Start with a Solid DPA Template
Include all necessary GDPR-required clauses, focusing on:
Data processing scope and purpose
Processor obligations
Security standards
Subprocessor management
Cross-border transfer clauses referencing SCCs or IDTA
2. Attach the Relevant SCCs or UK Transfer Mechanism
Depending on the jurisdiction, append:
EU 2021 SCCs (choose the right module)
UK IDTA or UK Addendum if transferring data from the UK
3. Conduct and Document a Transfer Impact Assessment
Use a standardized TIA template that includes:
Legal analysis of the recipient country
Technical and organizational safeguards
Approval or mitigation steps for risks
4. Maintain a Clause Library for Quick Negotiations
Prepare reusable clause snippets for common topics like:
Subprocessor notification
Data subject rights support
Security incident reporting
Termination and data return/destruction
Common Mistakes to Avoid in 2025
Using outdated SCCs from before 2021
Applying EU SCCs in UK transfers without the UK Addendum or IDTA
Skipping or poorly documenting Transfer Impact Assessments
Treating the DPA as a standalone contract without SCCs or TIA
Ignoring AI or emerging technology considerations in data transfers
FAQs About Data Processing Agreements in 2025
Q1: Is a Transfer Impact Assessment legally required? A: Not explicitly under GDPR, but it is strongly recommended by regulators and necessary to comply with Schrems II.
Q2: Can I use the same SCCs for both EU and UK transfers? A: No. Use EU SCCs with the UK Addendum or the UK-specific IDTA for UK transfers.
Q3: How often should I update my DPA and transfer assessments? A: At least annually or whenever there are significant changes in processing or transfer mechanisms.
Conclusion
In 2025, your Data Processing Agreement is just one piece of a larger compliance puzzle. To protect personal data and meet GDPR/UK GDPR requirements, your organization must combine a robust DPA, the correct Standard Contractual Clauses or UK transfer mechanisms, and a well-documented Transfer Impact Assessment.
Noa Kahalon
Noa is a certified CIPM, CIPP/E, and a Fellow of Information Privacy (FIP) from the IAPP. Her background consists of marketing, project management, operations, and law. She is the co-founder and COO of hoggo, an AI-driven Digital Governance platform that allows legal and compliance teams connect, monitor, and automate digital governance across all business workflows.