Are eSignatures Legally Binding in Iceland?

Electronic signatures are legal in Iceland and are recognised under the Icelandic Act No 28/2001 which was introduced in 2001. Under Icelandic law, contracts are deemed valid as long as the parties involved are legally competent and have reached an agreement, whether that agreement is made verbally, on paper, or electronically. In case of a dispute, the parties may need to provide evidence in court to prove the existence of a valid contract. The Act states its objective is “to provide for the legal effect of electronic signatures”.

Documents that can be signed electronically

Use cases for qualified electronic signatures (QES) in Iceland include:

Tenancy agreements
Request for deprivation of legal competence
Data Processing Agreements between controllers and processors
Import declarations
Marriage settlement or contracts
Wills
Employment agreements and terminations of employment agreements
Residential lease agreements (can also be handwritten)
Contracts to buy or transfer real estate
Insurance contracts, notice of termination etc

Documents that may not be electronically signed

In Iceland, there are specific use cases that do not permit the use of electronic signatures and require a handwritten signature and formal notarial processes that are not typically compatible with e-signatures or digital transactions. These include:

Employment contracts
Residential lease agreements (can also be electronically signed)
Some contracts associated with family law such as marriage contracts and contracts of inheritance
Articles of incorporation of a company with limited liability
Real property transfer contracts and deeds

Types of e-signature permitted in Iceland

The Icelandic Act is similar to eIDAS as it provides definitions for electronic signatures, advanced electronic signatures (AES), and qualified electronic signatures (QES). It defines an electronic signature as “data in electronic form that is logically associated with or attached to other electronic data which is used which is used the verify the origin of the latter data.”

An AES has additional security and verification requirements to ensure it is “uniquely linked to the signer”. A QES is an advanced signature that is created using a signature creation device and supported by a “qualified certificate”.

Notable legality changes since 2020

None.

Publicly Accessible Links to Laws/Regulations Discussed

Icelandic Act No 28/2001 on Electronic Signatures (2001)

Disclaimer

The content provided on this website is meant for general informational use only and does not constitute legal advice. Legal regulations on this topic can evolve rapidly, so E-Sign does not ensure that the information presented here is always up-to-date or accurate. If you have particular legal concerns regarding any details on this site, it is recommended that you consult with a licensed attorney in your jurisdiction.

Last Updated 9th October 2024

The Legality of eSignatures in Iceland

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