Croatia: legal requirements and validity of electronic signatures

This article explores the legal landscape of electronic signatures in Croatia, covering key aspects of their use, validity, and adoption.

Main laws determining the legality and binding status of electronic signatures in Croatia

In Croatia, the legality and binding status of electronic signatures are primarily determined by the Electronic Signature Act (Zakon o elektroničkom potpisu) and the EU eIDAS Regulation (Regulation (EU) No 910/2014) on electronic identification and trust services for electronic transactions in the internal market. These laws provide the foundation for the use and recognition of electronic signatures in the country.They ensure that electronic signatures are as legally binding as traditional “wet ink” signatures.

1. Electronic Signature Act (NN 10/02 / NN 80/08 / NN 30/14): The Electronic Signature Act (Zakon o elektroničkom potpisu) (Law NN 10/02, amended by Law NN 80/08) has been supplemented by a series of ordinances and regulations, such as the Regulation on the scope of operations, content and responsible authority for operations of electronic signature certification for State Administration bodies (NN 146/04).The Act governs the use and recognition of electronic signatures in Croatia. It aligns with the eIDAS Regulation, which applies directly to all EU member states, including Croatia. You can find Law NN 10/02 here, Law NN/146/04 here, Law NN 80/08 here and Law NN 30/14 here.
2. eIDAS Regulation (Regulation (EU) No 910/2014): The eIDAS Regulation provides a comprehensive legal framework for electronic identification and trust services. It distinguishes between three types of electronic signatures:

• Simple electronic signature: Basic form without any specific security requirements.
• Advanced electronic signature: Requires a unique identification and is created using electronic signature creation data.
• Qualified electronic signature: Offers the highest level of security and is equivalent to a handwritten signature. It requires a qualified certificate issued by a trusted service provider.

Each type of electronic signature has different legal weight and technical requirements. The eIDAS Regulation mandates that a qualified electronic signature has the same legal effect as a handwritten signature across the EU. This regulation is crucial in determining the binding status of electronic signatures in Croatia. Qualified electronic signatures offer the highest level of legal certainty as it is considered equivalent to handwritten signatures for most purposes.

These laws establish the legal equivalence of electronic signatures to handwritten signatures, provided certain conditions are met.

Relevant standards and conditions for an electronic signature to be legally binding in Croatia

For an electronic signature to be legally binding in Croatia, it must comply with the standards outlined in the eIDAS Regulation and the Electronic Signature Act. The following conditions must be met:

1. Identification and authentication: The electronic signature must be uniquely linked to the signatory and be capable of identifying the signatory. 
2. Control: The method used to create the electronic signature must be under the sole control of the signatory.
3. Integrity: The electronic signature must be capable of proving the integrity of the information to which it relates.
4. Consent and intent to sign: Parties must agree to conduct transactions electronically and the signatory must demonstrate a clear intention to sign the document electronically.
5. Association with the document: The electronic signature must be logically associated with the document, ensuring that any subsequent changes to the document are detectable.
6. Reliability: The method used to create the electronic signature must be reliable and appropriate for the purpose for which it was generated.
7. Compliance: The signature must comply with any additional requirements set by the relevant authorities.

• Certificate: Qualified electronic signatures require a certificate from a trusted service provider.
• Security: Advanced or qualified electronic signatures must be created using secure methods, such as cryptographic algorithms, to prevent tampering.

The use of qualified electronic signatures is encouraged for transactions requiring a higher level of security and authenticity. 

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Find out more about eSignature laws in Eastern Europe:

• Legal requirements for eSignature in Cyprus
• Legal requirements for eSignature in Czechia
• Legal requirements for eSignature in Estonia
• Legal requirements for eSignature in Hungary
• Legal requirements for eSignature in Latvia
• Legal requirements for eSignature in Lithuania
• Legal requirements for eSignature in Poland
• Legal requirements for eSignature in Romania
• Legal requirements for eSignature in Slovakia
• Legal requirements for eSignature in Ukraine

Circumstances where electronic signature may not be valid in Croatia

While electronic signatures are widely recognised, there are certain circumstances where they may not be considered valid in Croatia:

1. Lack of consent: If the parties involved do not agree to use electronic signatures, the signature may be deemed invalid.
2. Non-compliance with standards: If the signature does not meet the required standards, such as using a non-qualified service provider for qualified electronic signatures, it may be invalidated.
3. Specific legal exclusions: Some legal documents, such as wills, family law documents, documents relating to real estate transactions and documents requiring notarization, may require traditional handwritten signatures by law.
4. Fraud or coercion: If a signature is obtained through fraud, coercion, or misrepresentation, it can be contested and deemed invalid.

In these cases, traditional handwritten signatures or additional verification methods may be required to ensure the legality and authenticity of the document.

Electronic signatures in Croatia: recent developments

Although specific court cases related to electronic signatures in Croatia are limited, the application of the eIDAS Regulation and the Electronic Signature Act has been consistently upheld in legal proceedings. Courts generally accept electronic signatures as valid evidence, provided they meet the necessary legal standards.

The Croatian government has been actively promoting the use of electronic signatures as part of its digital transformation efforts. For instance, the e-Citizens platform, which allows citizens to access various public services using electronic identification and signatures, was introduced to modernise, simplify, and speed up communication between citizens and the public administration, and to increase the transparency of the public sector in providing public services.

Forthcoming legislation on electronic signature in Croatia

Presently, there is no specific forthcoming legislation in Croatia that aims to change the existing electronic signature framework significantly. However, ongoing discussions at the EU level may lead to updates or enhancements to the eIDAS Regulation, which would automatically apply to Croatia. The focus is likely to remain on improving security measures, expanding the use of electronic identification, and enhancing cross-border recognition of electronic signatures. These developments aim to facilitate digital transactions and promote trust in electronic communications across the EU.

Industry-specific standards for electronic signatures in Croatia

While the general legal framework applies across sectors, some industries in Croatia have specific requirements or guidelines for electronic signatures:

1. Financial services: Banks and financial institutions often require advanced or qualified electronic signatures for transactions to ensure high security and compliance with regulatory standards. Additionally, the Croatian National Bank (HNB) may issue guidelines for using electronic signatures in banking transactions.
2. Healthcare: Electronic signatures in the healthcare sector must comply with data protection regulations, ensuring the confidentiality and integrity of patient information. The Croatian Health Insurance Fund (HZZO) has implemented electronic prescriptions and referrals using qualified electronic signatures.
3. Real estate While some real estate transactions require handwritten signatures, electronic signatures are increasingly accepted for preliminary agreements and digital communications.
4. Public sector: Government agencies may mandate the use of qualified electronic signatures for official documents and communications. 
5. Legal profession: The Croatian Bar Association has guidelines for lawyers using electronic signatures in legal documents and court submissions.

Each industry may have specific guidelines or standards that dictate the appropriate level of electronic signature required. Organisations must assess their needs and comply with relevant regulations to ensure the legality of their electronic transactions.

Adoption of electronic signatures in Croatia

The adoption of electronic signatures in Croatia has been steadily increasing. Businesses, government agencies, and individuals are recognizing the benefits of electronic signatures in streamlining processes and enhancing efficiency. Some key factors contributing to the widespread adoption include:

1. Digital transformation: As businesses embrace digital transformation, electronic signatures are becoming an integral part of their operations.
2. EU integration: Croatia's alignment with EU regulations, such as eIDAS, promotes the use of electronic signatures across borders, enhancing their adoption.
3. Efficiency and convenience: Electronic signatures offer a convenient and efficient way to execute contracts and agreements, reducing the need for physical paperwork.
4. Remote work: The rise of remote work has further accelerated the adoption of electronic signatures, enabling businesses to conduct transactions seamlessly online.
5. Government initiatives: The Croatian government has been actively promoting eSignature adoption through initiatives such as the e-Citizens platform (e-Građani), Digital Croatia Strategy and e-Business project for simplifying business operations (NN 53/2018). These efforts have contributed to wider acceptance and use of electronic signatures in both public and private sectors.

Electronic signatures are now commonly used in various sectors, including finance and healthcare. This trend is expected to continue as technology advances and more industries recognise the value of electronic signatures.

Leading providers of electronic signatures in Croatia

Several companies provide electronic signature solutions in Croatia, catering to different industries and 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 popular choice for businesses of all sizes.
3. Adobe Sign: Part of the Adobe Document Cloud suite.
4. HelloSign: A Dropbox company providing electronic signature solutions.
5. Eversign: Provides a user-friendly platform with features suitable for various industries.
6. Yousign: A European electronic signature solution.
7. PandaDoc: Combines document creation with electronic signature capabilities.
8. SignRequest: Offers a user-friendly platform suitable for small to medium-sized businesses.
9. Scrive: Specialises in electronic signature and identification solutions for various industries.
10. RightSignature: Part of Citrix, providing a secure and reliable eSignature solution.

These providers offer a range of features and pricing options, allowing businesses to choose the solution that best fits their needs.

FAQ: common questions about electronic signatures in Croatia

Are electronic signatures legally binding in Croatia?

Yes, electronic signatures are legally binding in Croatia, provided they comply with the eIDAS Regulation and the Electronic Signature Act.

What is a qualified electronic signature?

A qualified electronic signature is the highest level of electronic signature, equivalent to a handwritten signature, and requires a qualified certificate from a trusted service provider.

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

Yes, qualified electronic signatures typically require a secure signature creation device, such as a smart card or USB token, issued by a qualified trust service provider.

Is there a difference between advanced and qualified electronic signatures?

Yes, an advanced electronic signature offers a higher level of security than a simple electronic signature but does not require a qualified certificate, unlike a qualified electronic signature.

Can all documents be signed electronically in Croatia?

While most documents can be signed electronically, some legal documents, such as wills, certain real estate transactions, documents relating to family law and documents requiring notarization may require handwritten signatures or additional formalities by law.

How can I verify an electronic signature in Croatia?

You can verify electronic signatures using validation services provided by qualified trust service providers, through the EU's eIDAS-compliant validation tools or by using cryptographic methods.  

Is there any industry-specific requirement for electronic signatures in Croatia?

Yes, certain industries, such as finance and healthcare, may have specific requirements for electronic signatures to ensure compliance and security.

Are foreign electronic signatures recognized in Croatia?

Yes, Croatia recognizes electronic signatures from other EU countries that comply with the eIDAS Regulation. Non-EU signatures may be recognized if they offer an equivalent level of security.

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

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

Who are the leading providers of electronic signature services in Cyprus? 

Leading providers include Juro, DocuSign, Adobe Sign, HelloSign, and others, offering diverse solutions for businesses and individuals.

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Electronic signatures have gained significant legal recognition and practical adoption in Croatia. With a robust legal framework aligned with EU regulations, Croatia has created a favourable environment for the use of eSignatures in various sectors. As digital transformation continues, we can expect to see even wider adoption and integration of electronic signature technologies in Croatian business and public services.

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