Austria: legal requirements and validity of electronic signatures

This guide explores the legality of electronic signatures in Austria, focusing on key aspects such as legal requirements, standards, invalid circumstances, industry-specific standards, adoption rates, and leading providers.

Main laws governing electronic signatures in Austria

The main laws and regulations that determine the legality and binding status of electronic signatures in Austria are: 

1. eIDAS Regulation (EU Regulation No. 910/2014): This is a European Union regulation that provides a standardised legal framework for electronic identification and trust services across EU member states, including Austria. eIDAS ensures that electronic signatures are recognized and accepted throughout the EU. You can find the full text of the regulation here. 
2. Austrian Signature and Trust Services Act (Signatur- und Vertrauensdienstegesetz; SVG): This national law implements eIDAS in Austria and provides additional regulations specific to the country. It outlines the conditions under which electronic signatures are considered legally binding in Austria. You can find the law here. 

These laws work together to establish the legal validity and binding nature of electronic signatures in Austria. The SVG, in particular, outlines specific requirements for electronic signatures and their legal effects.

Types of electronic signatures in Austria

Austrian law recognizes three types of electronic signatures, in line with the eIDAS Regulation:

1. Simple electronic signatures (SES): These are basic electronic signatures with minimal security features. They are generally used for low-risk transactions where legal assurance is not a significant concern.
2. Advanced electronic signatures (AES): These signatures are more secure than SES, requiring unique identification and a secure method of linking the signature to the signatory. They must meet the following higher standards:

• Uniquely linked to the signer
• Capable of identifying the signer
• Created using data that the signer can use under their sole control
• Linked to the signed data in a way that any subsequent change is detectable

These signatures offer more security and are more difficult to forge than simple electronic signatures.

3. Qualified electronic signatures (QES): These are the most secure type of electronic signatures, providing the highest level of legal assurance. QES is the only type that is legally equivalent to a traditional “wet ink” signature under Austrian law, and considered the gold standard for electronic signatures.They require a qualified certificate issued by a trusted service provider. They must meet all the requirements of advanced electronic signatures, in addition to the following:

• Be created by a qualified electronic signature creation device
• Be based on a qualified certificate for electronic signatures

Electronic signature law in Austria: standards and conditions

To ensure that an electronic signature is legally binding in Austria, specific standards and conditions must be met:

1. Identification: The signatory must be uniquely identified and linked to the signature. This can be achieved through digital certificates provided by trusted service providers.
2. Integrity: The signature must ensure the integrity of the signed document, meaning that any subsequent changes to the document should be detectable.
3. Authenticity: The signature must be created using means that the signatory can maintain under their sole control.
4. Qualified trust service providers (QTSPs): To use a QES, the certificate must be issued by a QTSP, which is a provider that meets stringent EU standards for security and reliability.

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Find out more about eSignature laws in Europe:

• Legal requirements for eSignature in Belgium
• Legal requirements for eSignature in France
• Legal requirements for eSignature in Germany
• Legal requirements for eSignature in Gibraltar
• Legal requirements for eSignature in Greece
• Legal requirements for eSignature in Ireland
• Legal requirements for eSignature in Malta
• Legal requirements for eSignature in Portugal
• Legal requirements for eSignature in Spain
• Legal requirements for eSignature in Switzerland
• Legal requirements for eSignature in the UK

Electronic signature in Austria: limitations and exceptions

While electronic signatures are generally accepted in Austria, there are circumstances where they may not be valid:

1. Lack of consent: If the parties involved have not agreed to use electronic signatures, the signature may not be valid.
2. Inadequate security level: If the security level of the signature does not match the transaction's risk, the signature might be deemed invalid. For example, a simple electronic signature might not suffice for high-value contracts.
3. Specific legal exceptions: Certain government and legal documents, such as official government forms and certificates, wills, family law documents, documents requiring notarization and documents relating to real estate transactions, may require handwritten signatures due to specific legal requirements.
4. Improper certificate: If a QES is required and the certificate is not issued by a recognized QTSP, the signature will not be considered legally binding.

It's always best to check specific requirements for important legal documents. 

Recent court decision on electronic signatures in Austria

Several recent court decisions have shaped the understanding and application of electronic signatures in Austria. Notably, in 2021, the Austrian Federal Administrative Court (Bundesverwaltungsgericht, BVwG) held that the decision by the Austrian Federal Railways (Österreichische Bundesbahnen, ÖBB) to accept the electronically submitted offer from the Swiss company Stadler Rail AG was invalid due to non-compliance with the requirement of using a qualified electronic signature. You can read the judgement here. 

This case demonstrates the Austrian courts' commitment to upholding the integrity and security of electronic signatures. 

Forthcoming legislation on electronic signatures in Austria

Currently, there is no major forthcoming legislation set to significantly change electronic signature laws in Austria. The current legal framework, based on the EU eIDAS Regulation and the Austrian SVG, is considered robust and up-to-date.

However, it's worth noting that Regulation (EU) 2024/1183 (eIDAS 2) recently came into force in 2024 This update introduces a European Digital Identity Wallet, providing citizens with a secure and convenient way to manage their digital identities and signatures across the EU. It enhances the EU's electronic identification and trust services framework, affecting Austria. Key changes include:

• Stronger security for trust service providers
• Expanded scope covering electronic archiving and ledgers
• Focus on mobile signature solutions
• Standardised remote identification processes
• Improved cross-border recognition
• Stricter data protection aligned with GDPR

While not changing the core legal status of eSignatures, eIDAS 2.0 aims to increase their adoption and reliability. You can find the regulation here. 

Nevertheless, Austria continues to explore national initiatives to promote digitalization and enhance electronic signature adoption, focusing on improving security and user experience. Austrian businesses and individuals should stay informed about these updates and adapt their practices as needed.

Industry-specific standards for electronic signatures in Austria

While the general legal framework for electronic signatures applies across industries, some sectors have specific requirements or preferences. These include:

1. Finance services: The financial sector often requires QES for transactions involving large sums or sensitive information, ensuring the highest security level. 
2. Healthcare: The Austrian healthcare sector often uses advanced or qualified electronic signatures for patient records and prescriptions, in addition to complying with strict data protection regulations
3. Real estate: Real estate transactions typically require a handwritten signature or a QES due to the legal and financial implications involved. 
4. Government and public services: Electronic signatures are increasingly used in public services, but they must meet specific standards to ensure authenticity and integrity.
5. Legal profession: Many legal documents can be signed electronically, but lawyers often prefer qualified electronic signatures for added security.

These industry-specific standards highlight the importance of selecting the appropriate level of electronic signature based on the transaction's nature and risk. Always check industry-specific regulations to ensure compliance with any special requirements.

Adoption of electronic signatures in Austria

Electronic signatures are widely adopted in Austria, driven by the country's strong digital infrastructure and supportive legal framework. Key factors contributing to this adoption include:

1. Government initiatives: The Austrian government actively promotes digitalization, encouraging businesses and individuals to embrace electronic signatures. The ‘Digital Austria’ initiative aims to enhance digital services and increase the use of electronic signatures in public administration.
2. Business benefits: Businesses in Austria recognize the efficiency and cost-saving benefits of electronic signatures. They streamline processes, reduce paperwork, and enable faster contract execution.
3. Consumer confidence: The robust legal framework and widespread use of electronic signatures have increased consumer confidence, making them more likely to accept and use electronic signatures in various transactions.
4. Technological advancements: Advancements in technology, such as secure digital identity solutions and mobile signature applications, have made electronic signatures more accessible and user-friendly.

Leading providers of electronic signatures in Austria

Several companies provide electronic signature solutions in Austria, offering a range of services to meet different needs. Some of the leading providers include:

1. DocuSign: A global leader in electronic signature solutions.
2. Juro: A popular contract automation platform known for its user-friendly interface and robust security features, Juro is a top choice for many businesses.
3. Adobe Sign: Part of the Adobe Document Cloud suite.
4. HelloSign: A Dropbox company providing electronic signature solutions.
5. Yousign: A European electronic signature solution.
6. Scrive:Offers electronic signature solutions with features for contract management.
7. Zoho Sign: Integrates well with other Zoho products.

These providers offer a range of solutions, from simple electronic signatures to advanced and qualified electronic signatures, catering to the diverse needs of businesses and individuals in Austria.

FAQ: common questions about electronic signatures in Austria

Are electronic signatures legally binding in Austria?

Yes, electronic signatures are legally binding in Austria, provided they meet specific requirements outlined in the eIDAS Regulation and the Austrian Signature and Trust Services Act.

What is the most secure type of electronic signature in Austria?

The qualified electronic signature (QES) is the most secure and legally binding type of electronic signature in Austria, equivalent to a handwritten signature.

Do I need special hardware to create a qualified electronic signature?

Yes, qualified electronic signatures require a qualified electronic signature creation device, which is often a smart card or USB token.

Can I use an electronic signature for all types of documents in Austria?

While electronic signatures are widely accepted, certain documents, such as wills, documents requiring notarization, documents relating to family law, and real estate transactions, may require handwritten signatures due to legal requirements.

Is there a difference between electronic signatures and digital signatures in Austria?

Yes, electronic signatures refer to any electronic method used to sign documents, while digital signatures specifically use cryptographic techniques to ensure security and authenticity.

How do I verify an electronic signature in Austria?

For qualified electronic signatures, you can use verification tools provided by qualified trust service providers. For other types of electronic signatures, the verification method depends on the system used to create the signature.

Are there any specific industries in Austria that require qualified electronic signatures?

Industries such as finance and healthcare often require QES due to the high-security standards and legal assurance needed for transactions.

Are electronic signatures from other EU countries valid in Austria?

Yes, thanks to the eIDAS Regulation, electronic signatures that comply with EU standards are recognized across all EU member states, including Austria.

How do I choose the right electronic signature provider in Austria?

Consider factors such as security features, compliance with eIDAS and Austrian regulations, ease of use, and integration capabilities when choosing an electronic signature provider.

What are the benefits of using electronic signatures in Austria?

Electronic signatures offer benefits such as increased efficiency, cost savings, faster contract execution, reduced paperwork, and improved security and compliance.

Can I use electronic signatures for cross-border transactions in the EU?

Yes, electronic signatures compliant with the eIDAS Regulation are recognized across EU member states, including Austria, facilitating cross-border transactions.

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Electronic signatures are a vital part of Austria's digital landscape, supported by a robust legal framework that ensures their validity and security. As technology evolves, electronic signatures will play an increasingly important role in facilitating seamless and secure transactions across various industries.

Understanding the legal requirements, standards, and best practices for electronic signatures in Austria is essential for businesses and individuals looking to embrace digitalization and enhance their operational efficiency.

Juro is not a law firm and this article should not be relied on as legal advice.