​​Compliance Q&A: How much does GDPR compliance cost?

Ayush Saxena

Ayush Saxena

Nov 01, 2024

Does GDPR seem like a jigsaw puzzle?
We know it can get confusing, but it’s a high-stakes game, and a missing piece can lead to losses of millions of dollars and heavy sanctions. 

The latest €1.2 billion fine handed down to Meta by the Irish Data Protection Commissioner is a prime example. High-profile fines like those imposed on Amazon, Facebook, WhatsApp, and other tech giants should clarify how expensive non-compliance can be on your compliance budget.

It is not just a matter of fines, payment and costs for compliance these violations and the news coverage can cause further reputational damage that far outweigh the fines. Businesses can even be locked out of the lucrative EU market if they do not comply with GDPR and European Data Protection Laws  in letter and spirit. Now that we know the costs of noncompliance let’s understand what the costs of compliance are. 

Spoiler alert: they’re much lower than noncompliance costs

Breakdown of GDPR Compliance Costs

Achieving GDPR certification involves various expenses, including consultant fees, certification fees, and internal costs. Read till the end to find out an approximate cost or go on to our compliance cost calculator to find out an accurate breakdown for your business.

gdpr compliance cost

Implementation fees

The implementation fees for GDPR Certification, on average, can range between $10,000 USD to $25,000 USD. Additionally, the cost of monitoring can range between $ 5,000 USD to $ 30,000 USD.

GDPR Certification additionally requires obtaining ISO 27001 and ISO 27701 Certification, each of which would amount to anywhere between $3500 USD to $10,000 USD, depending on the complexity and size of the organisation. 

Consultant fees

Consultant fees for GDPR Certification range from $5,000 to $15,000, based on the complexity of data processing activities, the support required, and the consultant’s experience.

Internal costs: 

Internal costs for GDPR Certification include employee documentation, training, and audit preparation expenses. Costs can vary based on your business size and readiness. For example:

  • Security tools: 5000$ USD- 20000$ USD
  • Security training: 500$ USD- 20,500$ USD

Total Cost Range

The total fee of GDPR compliance can range between $20,500 – $1,02,500 depending on the size and complexity of your organization. Becoming compliant with GDPR also requires organizations to obtain ISO 27701 and ISO 27001 Certifications.

gdpr compliance cost breakdown

Save up to 60% on GDPR  audit costs

Why Invest in GDPR Certification?

Becoming GDPR compliant is a far better option than facing the hefty penalties, financial losses, loss of customer trust and damage to reputation that come with non-compliance. Investing in GDPR Certification demonstrates a commitment to data protection and can help you secure a foothold in lucrative EU markets that can reap rich dividends. 

Costs incurred in GDPR Compliance: Considerations to bear in mind 

Now you know the costs, what are the variables that impact the cost of GDPR compliance, lets take a look at all the considerations you have to bear in mind which can impact your final cost. 

1. Certification type and accreditation body

GDPR certification costs can vary based on the accreditation body you choose and the type of accreditation you go for. Top bodies include EuroPrise, ISO 27001, TRUSTe, and more. Certain certifications can require more commitments, such as the TRUSTe which is an enterprise-level accreditation that allows companies to comply with US and EU regulations simultaneously. 

2. Scale of your business

The size of your organization, whether large or small, plays a key role in compliance with GDPR. The larger your organization, the more complex the data flow, and this can cause a lot of additional scrutiny which consequently can drive up auditor costs. The idea is to be comprehensive with an assessment of your data; hence, charting your data flow in the simplest way possible can make it more straightforward. 

3. The extent of personal data use

If your organization uses personal data for various purposes, for example, Facebook uses your data to run targeted ads, there is a much higher complexity attached to the data set. Hence, auditors may need to comb through a lot of legal documents and data infrastructure to understand if the data is being used appropriately, this can also impact your audit costs. GDPR implements that controllers must prove the legitimacy of personal data processing. Conducting a Data Protection Impact Assessment (DPIA) is an indispensable stage that helps identify risks and protect data. Consult a specialized GDPR consultant and/ or use do-it-yourself solutions for minimizing risks.

4. Level of Training Required 

Training for all of the handlers of personal data is called out in Article 25 of GDPR. One of the frequently heard reasons for the data breaches is the inadequate staff training. A major key to effective information security is systematic and thorough employee training.

5. Man hours spent 

Aside from the general training, multiple stakeholders may be involved in a lot of work to make GDPR readiness a reality. Set aside dedicated time for the employees to learn the new technologies and workflows. Developing a general awareness of the policies and responsibilities will require a significant time investment by the organization. 

Worried about the hidden cost of getting a GDPR certification? Our compliance effort calculator can help you find out how much effort your audit will cost in terms of bandwidth.

Minimize effort, maximize GDPR success

6. Possible Hidden Costs 

While upfront costs are significant, hidden expenses can catch organizations off guard. Here are some of these hidden costs you need to calculate for a transparent assessment:

  • Technology: You need strong technology solutions to have visibility over collected data, obtain full consent, and implement data governance and threat detection capabilities.
  • Human Resources: Compliance efforts demand additional manpower. GDPR mandates hiring a Data Protection Officer (DPO) for certain organizations, adding to costs.
  • Legal Expenses: The regulatory landscape requires legal expertise to navigate unique compliance issues. Early evaluation of legal costs for your business is crucial.

7. Promoting the Culture of Compliance

GDPR is a young legislation that is continuously developing, which means that you will have to constantly ensure that you are carving out a budget or employing tools to look into evolving requirements and how your controls are keeping up. Conducting regular internal audits and striving for continuous improvement is the only way to ensure lasting compliance.

Simplify GDPR compliance with our “GDPR Data Processing Agreement.” Download this crucial document to ensure your data protection practices meet regulatory standards.

The True Cost of Ignoring GDPR

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Don’t underestimate the fallout from disregarding GDPR rules. Non-compliance can hit your bottom line and reputation hard. Let’s delve into the consequences:

Customer Churn and Business Disruption

Data breaches easily erode the user’s confidence, increasing churn rates greatly. Repercussions around past incidents has suggested that any mistrust around data and privacy safeguards can cause customers to quickly move to competition. Poor compliance to GDPR norms can lead to data breaches or even infiltration of ransomware where your business process can be locked up by threat actors. Huge ransoms may be demanded and the period of inaction can deepen losses. 

Increase in Cyber Insurance Premiums & Penalties if imposed

The magnitude of regulatory fines for violating GDPR standards is huge and may be accompanied by civil and criminal penalties. Also, if you feel that this can be covered by cyber insurance well no luck there. Your inappropriate cyber security creates a huge risk, hence, it will be much more expensive to insure your business than a complaint one. Insurers conduct assessments on compliance and risk for policy and premium purposes. 

Failed Funding Or Acquisition  

Non-compliance discourages investors looking to fund or acquire you as you may not clear the due diligence of the investing firms or individual investor’s team. This can be a make or break for your business especially if you are looking for an exit and can vastly devalue the kind of investments that eventually are tabled. 

Automate GDPR compliance with Sprinto

The process of GDPR compliance can be overwhelming and lengthy, yet it is a must-have for any business to do business in the lucrative EU region. Along with that, the costs related to compliance can be quite large as well, especially if you choose to do it manually or with a consultant with businesses having to spend from $20,500 to $102,500.

gdpr compliance sprinto

At Sprinto, we realize the importance of GDPR compliance, as well as the need to be frugal and resourceful in the process of it, hence our common control framework helps you put in place security controls that monitor not just for one compliance GDPR and mandatory certifications like ISO 27001 but also for other top frameworks such as SOC 2, HIPAA, PCI DSS and more. What’s more, you can even create or import custom frameworks to keep evolving your security posture based on evolving regulations. All this while working perfectly with your tech stack and giving you a real time picture of controls. 

With Sprinto, you can implement GDPR with ease in 3 simple steps. You can use Sprinto to construct an integrated pipeline of data protection controls and policies. With automated checks, you can ensure continuous compliance with relevant GDPR laws and maintain regulatory compliance effortlessly.

Step 1

The first step starts with consolidating all entities, including infrastructure, employees, and devices, with Sprinto to have all of them included within the scope of compliance and identify potential sources of risk. 

With Sprinto, you can conduct entity-wide integrated risk assessments for Data Protection Impact Assessments (DPIA) while benefiting from expert guidance from our compliance experts guiding you all the way.

Step 2

The next step is identifying and analyzing relevant privacy laws and regulations to develop a clear and concise GDPR compliance program.

For instance, you can create a GDPR-compliant privacy notice for your website visitors with an opt-in/opt-out button.

Sprinto helps you:

  • Conduct comprehensive control mapping to align with GDPR requirements
  • Gain legal assistance for policy documentation to ensure compliance

Step 3

In the last step, Sprinto helps you implement security and privacy measures. It offers tools to create and enforce policies, ensuring compliance with GDPR regulations. Sprinto also keeps an eye on things in real time, making sure your systems stay secure.

With Sprinto, you benefit from privacy training for your team so that everyone understands their roles in compliance. Also, you get continuous control monitoring and platform-based management, keeping your data protection efforts up-to-date and effective.

To see how this worked, check out how Noosa.io became GDPR compliant in 14 sessions with Sprinto.

Book your demo now to see the magic in action!

FAQs

How do I get GDPR certified?

Take the following steps to get GDPR-certified:

  • Apply to an independent audit organization
  • Ask for a quotation and pay the audit fee,
  • Implement the necessary steps required for the audit,
  • Pass the audit
  • Receive the certification.

How long does GDPR certification last?

Certification issued by a processor or controller is valid a maximum period of three years and can be renewed under the same conditions, given that the relevant criteria is still met.

What is the fine for GDPR ?

The EU GDPR has laid down a maximum fine of 4% of annual global turnover or €20 million (about £18 million)– whichever is higher – for breaches. However, not all GDPR breaches lead to data protection penalties.

Ayush Saxena
Ayush Saxena
Ayush Saxena is a senior security and compliance writer. Ayush is fascinated by the world of hacking and cybersecurity. He specializes in curating the latest trends and emerging technologies in cybersecurity to provide relevant and actionable insights. You can find him hiking, travelling or listening to music in his free time.

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