eSignatures are widely recognized as legally binding in the world. Learn more about eSignature legality across various countries from this guide.
Iceland has legally recognized electronic signatures since 2001 with the Icelandic Act on Electronic Signatures.
The Icelandic Act on Electronic Signatures states eSignatures are permissible for transactions as long as both parties agree. In certain cases, additional documentation is needed to prove a valid contract.
An eSignature is broadly defined 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.” Iceland recognizes the 3 tiers of eSignatures as Standard, Advanced, and Qualified.
A standard electronic signature (SES) is the existence of electronic data logically connected to other electronic data (e.g. a document), which is used by the signatory of the electronic data for signature of the document. Many electronic tools, including passwords, PIN codes and scanned signatures can be regarded as a SES.
An advanced electronic signature (AES) must ensure that signatures are uniquely connected to and capable of identifying the signatory. It has to be created using electronic signature creation data that the signatory can, with a high level of confidence, use under their sole control.
A qualified electronic signature (QES) is a stricter form of AES and the only signature type given the same legal value as handwritten signatures. It is an advanced electronic signature with a qualified digital certificate that has been created by a qualified signature creation device (QSCD).
According to the Icelandic Act on Electronic Signatures, the tier of eSignatures is required based on the type of transaction or document.