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VDR glossary · Compliance and privacy

What is a transfer impact assessment (TIA)?

Definition

Transfer impact assessment (TIA): A documented review, required in some cases under EU data protection law, of whether personal data sent to a country outside the EU will be adequately protected there in practice, despite the safeguards in the contract.

How it works in a data room

When personal data in a room is accessed from, or processed in, a country without an EU adequacy decision, the exporter often relies on standard contractual clauses. A transfer impact assessment looks at the destination’s laws, especially government access to data, and at extra measures such as encryption, key control and access limits. Providers frequently publish template assessments for their own transfers, which customers adapt for their deal, including transfers to bidders’ advisers abroad.

Why it matters in a deal

Cross-border deals routinely move personal data out of the EU: a US buyer’s lawyers reviewing German employee files, or an Indian support team at the provider. Since the Court of Justice’s 2020 Schrems II ruling, contracts alone are not always enough, and regulators expect the assessment to exist on paper. Transfers to certified US companies under the EU-U.S. Data Privacy Framework generally do not need one.

Example

A French company selling a subsidiary to an Indian group documents the transfer of employee data to the buyer’s advisers in India. The assessment notes the encryption in place, the view-only access and the limited dataset, and concludes that residual risk is acceptable. The file is kept with the deal records. The India guide covers local data rules.

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