eSignature Legality Guide
eSignature Legality in Iceland
Electronic signatures have been legally recognized in Iceland since 2001, following the enactment of Icelandic Act No. 28/2001 on Electronic Signatures.
E-Signature Legality Summary
According to Icelandic law, a handwritten signature is not always necessary for a contract to be valid. Agreements between legally capable parties are generally enforceable whether made verbally, electronically, or in writing. In some cases, parties may need to provide evidence in court to prove the validity of a contract. Leading digital transaction management platforms can generate electronic records that are admissible as evidence under Icelandic law (Article 44 of the Icelandic Act on Civil Procedure No. 91/1991), supporting the existence, authenticity, and acceptance of a contract.
The main purpose of the Icelandic Act NO. 28/2001 (the "Act") is to establish the legal effect of electronic signatures. The Act’s provisions are similar to those of eIDAS, as it defines "electronic signatures," "Advanced Electronic Signatures (AES)," and "Qualified Electronic Signatures (QES)."
An "Electronic Signature" is described as "data in electronic form which are attached to or logically associated with other electronic data and which are used to authenticate the origin of the latter data" (The Act, Article 3.1). An AES is an electronic signature "uniquely linked to the signatory" (The Act, Article 3.2), while a QES is an AES that is supported by a "qualified certificate" and "created using a secure signature-creation device" (The Act, Article 3.3).
Notable Changes in E-Signature Law Since 2020
None.
Documents That May be Signed Electronically
Examples of situations where a type of electronic signature other than a standard electronic signature (SES) may be required include:
- QES - contracts for the purchase or transfer of real estate (Article 7 of Act 40/2002 on Real Estates)
- QES or handwritten - residential lease agreements (Article 4 of the Icelandic Rent Act No. 36/1994)
- QES - employment contracts (based on Bargain Collective Agreements, implementing EU Directive 91/533/EBE, Act No. 35/1985, etc.)
- QES - termination of employment contracts (Article 1 of Icelandic Act No. 19/1979 Respecting Labourers’ Right to Advance Notice of Termination of Employment, etc.)
- QES - wills (Article 40 of the Icelandic Inheritance Act No. 8/1962) and other applications and legal acts under the same Act
- QES - marriage settlements or contracts (Article 80 of the Icelandic Act in Respect of Marriage No. 31/1993)
- QES - memorandum of association for companies, such as public limited companies (Article 3 of the Icelandic Act No. 2/1995 on Public Limited Companies)
- QES - requests for financial reorganization, composition with creditors, or bankruptcy proceedings (Article 6 of Icelandic Bankruptcy Act No. 21/1991), and related actions such as filing claims
- QES - requests for deprivation of legal competence (Article 8 of Act No. 71/1997 on Legal Competence)
- QES - subpoenas and defense statements in civil and criminal proceedings (Act No. 91/1991 on Civil Procedure and Act No. 77/2008 on Criminal Procedure)
- QES - insurance contracts, notices of termination, etc. (Article 15 of the Icelandic Insurance Contracts No. 30/2004)
- QES - import declarations (in certain cases), requests for binding classifications, customs opinions, etc. (Icelandic Customs Act No. 88/2005)
- QES - tenancy agreements (Article 8 of the Icelandic Tenancy Act No. 80/2004)
- QES - data processing agreements between controllers and processors (Article 13 of the Icelandic Data Processing Act No. 90/2018)
Further Guidance
Certain use cases are specifically excluded from digital or electronic processes, or require explicit formalities such as handwritten (wet ink) signatures or formal notarization, which are generally not compatible with electronic signatures or digital transaction management.
- Formal notarization - contracts and deeds for the transfer of real property
- Formal notarization - residential lease agreements
- Formal notarization - specific contracts related to family law, including wills, marriage contracts, and inheritance agreements
- Formal notarization – articles of incorporation for limited liability companies
- Handwritten - employment contracts
[1] An AES, or “advanced electronic signature,” is a type of electronic signature that: (a) is uniquely linked to the signatory; (b) can identify the signatory; (c) is created using means under the sole control of the signatory; and (d) is linked to the signed data so that any changes can be detected.
[2] A QES is a specific form of digital signature that meets government requirements, including use of a secure signature creation device, and is certified as ‘qualified’ by the government or an authorized party.
DISCLAIMER: The content provided on this website is for general informational purposes only and does not constitute legal advice. Laws and regulations may change rapidly, and DocuSign cannot ensure that all information presented here is up to date or accurate. If you have specific legal questions regarding any information on this site, please consult a qualified attorney in your jurisdiction.
Last updated: January 20, 2023