Estonia: legal requirements and validity of electronic signatures

Europe
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This article explores the legality, standards, and practical applications of electronic signatures in Estonia.

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

The main laws determining the legality and binding status of electronic signatures in Estonia are:

  1. EU eIDAS Regulation (EU) No 910/2014: This EU-wide regulation provides a consistent framework for electronic identification and trust services across the European Union and is fully implemented in Estonia. It sets the standards for electronic identification and trust services across the EU, ensuring the mutual recognition of electronic signatures among member states. The regulation classifies electronic signatures into three categories:
  • Simple electronic signatures (SES): Basic electronic data attached to a document.
  • Advanced electronic signatures (AES): Requires a unique identification process and is linked to the signatory.
  • Qualified Electronic Signatures (QES): Offers the highest level of security and legal acceptance, requiring a qualified certificate and a secure signature creation device.

Each type has different legal weight and security levels, with qualified electronic signatures offering the highest level of legal assurance.You can find the full text of the regulation here

  1. Electronic identification and trust services for electronic transactions Act (2016): This Act harmonises Estonian law with eIDAS, reinforcing the use of qualified electronic signatures (QES). Under this legislation, QES is considered legally equivalent to a handwritten signature. You can find the full text of the law here

These laws work together to ensure that electronic signatures have the same legal standing as traditional “wet ink” signatures in Estonia.

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Find out more about eSignature laws in Eastern Europe:

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

To ensure that an electronic signature is legally binding in Estonia, it must meet specific standards and conditions:

  • Intent to sign: The signatory must have the clear intention to sign the document.
  • Consent: All parties must agree to conduct the transaction electronically.
  • Signature attribution: The signature must be attributable to the person signing.
  • Integrity: The signed document must remain unaltered after signing.
  • Record retention: Signed documents must be stored in a way that allows future reference.
  • Identity verification: The identity of the signatory must be verified through reliable means, such as the national ID card, mobileID, or smartID, which are widely used in Estonia for digital identification.
  • Adherence to eIDAS standards: For an electronic signature to be recognised legally, it should comply with the standards defined by the eIDAS Regulation, particularly the criteria for advanced and qualified electronic signatures.

For qualified electronic signatures, additional technical standards must be met, including the use of a qualified certificate issued by a trust service provider.

  • Use of qualified trust service providers (QTSPs): A qualified electronic Signature must be issued by a qualified trust service provider. In Estonia, QTSPs are certified entities that provide trusted digital services, including the issuance of electronic certificates.
  • Secure signature creation devices (SSCDs): Qualified electronic signatures must be created using secure signature creation devices, which ensure the signature's integrity and the signatory's identity.

Circumstances where an electronic signature may not be valid in Estonia

While electronic signatures are widely accepted in Estonia, certain circumstances may render them invalid:

  1. Non-compliance with legal standards: If an electronic signature does not meet the legal requirements set by eIDAS or the national legislation, it may be deemed invalid. This includes using non-qualified electronic signatures for documents requiring a higher level of security.
  2. Lack of signatory identification and proper authentication: Failure to properly verify the signatory's identity can lead to the invalidation of an electronic signature, particularly in cases requiring a qualified electronic signature.
  3. Technical failures: If the integrity of the signing process is compromised due to technical issues, the signature may be invalidated.
  4. Forgery or fraud: If an electronic signature is proven to be forged or used fraudulently, it will not hold legal validity.
  5. Specific legal exceptions: Certain legal documents may require handwritten signatures by law, such as wills, documents requiring notarization, and those related to family law, unless explicitly stated otherwise.

Recent court decisions on electronic signature legality in Estonia

Estonia's courts have consistently upheld the legality of electronic signatures, provided they adhere to the established legal framework. Currently, there are no landmark court decisions specifically related to electronic signatures in Estonia.

However, the courts generally uphold the validity of electronic signatures when the proper legal standards are met.

Forthcoming legislation on electronic signatures in Estonia

Currently, no major legislative changes are expected for electronic signatures in Estonia. The current framework, based on the eIDAS Regulation, is considered strong and up-to-date. However, as an EU member state, Estonia may see changes in its electronic signature landscape if the eIDAS Regulation is revised at the European level.

Additionally, as a leader in digital innovation, Estonia remains proactive in monitoring technological advancements and may introduce amendments to align with evolving digital signature technologies and cybersecurity measures.

Furthermore, the ‘Digital Agenda 2030,’ which outlines plans to enhance digital services, improve cybersecurity, and position Estonia as a leading digital society, may further influence eSignature practices in the country.

Industry-specific standards for electronic signatures in Estonia

While Estonia's eSignature laws apply broadly across sectors, some industries have additional requirements:

  1. Financial services: The financial sector often requires qualified electronic signatures (QES) for transactions involving significant monetary values, ensuring the highest level of security and compliance.
  2. Healthcare: In healthcare, electronic signatures must comply with data protection regulations, such as the general data protection regulation (GDPR), to safeguard sensitive patient information. Additionally, patient records and prescriptions typically use advanced or qualified electronic signatures.
  3. Government and public sector: Government contracts and official documents typically require qualified electronic signatures, utilising Estonia's robust national ID infrastructure for secure identification.
  4. Real estate: While electronic signatures are accepted for certain aspects of real estate transactions, handwritten signatures are generally required, especially for documents that necessitate a notary's involvement or comply with specific legal stipulations.
  5. Legal profession: Court submissions that utilise electronic signatures must employ qualified electronic signatures.

Adoption of electronic signatures in Estonia

Estonia is a global leader in the adoption of electronic signatures, with widespread usage across various sectors. Several factors contribute to this high adoption rate:

  1. Digital infrastructure: Estonia's advanced digital infrastructure, including eResidency and the national ID card system, facilitates the seamless use of electronic signatures.
  2. Government support: The Estonian government actively promotes digital solutions, including electronic signatures, as part of its eGovernment initiative, fostering a culture of digital innovation.
  3. Business efficiency: Businesses in Estonia recognise the efficiency and cost-effectiveness of electronic signatures, leading to their widespread adoption in both domestic and international transactions.
  4. Public trust: The public's trust in digital solutions, reinforced by Estonia's strong cybersecurity measures, encourages the use of electronic signatures for personal and professional purposes.
  5. A tech-savvy population: Estonia's population is known for its high digital literacy, with most households having internet access and people of the older age groups using the internet regularly.
  6. Integration with numerous public and private services: Estonia's X-Road platform seamlessly connects various public and private sector eServices, allowing citizens to use their digital signatures for everything from voting and banking to healthcare and education.

Leading electronic signature providers in Estonia

Several companies provide electronic signature solutions in Estonia, 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 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. Scrive: Specialises in electronic signature and identification solutions for various industries.
  6. Yousign: A European electronic signature solution.

These providers offer a range of solutions, from simple electronic signatures to qualified electronic signatures compliant with the highest EU standards.

FAQ: common questions about electronic signatures in Estonia

Are electronic signatures legally binding in Estonia?

Yes, electronic signatures are legally binding in Estonia, provided they meet the legal requirements set forth by the eIDAS Regulation and national legislation.

What is the difference between a qualified electronic signature and an advanced electronic signature?

A qualified electronic signature (QES) requires a qualified certificate and a secure creation device, offering the highest level of legal recognition, while an advanced electronic signature (AES) requires unique identification but does not need a qualified certificate.

Can electronic signatures be used for all types of documents in Estonia?

While electronic signatures are widely accepted, certain legal documents, such as wills, family law documents, or documents requiring notarization, may require traditional handwritten signatures. 

How secure are electronic signatures in Estonia?

Estonian electronic signatures, particularly qualified electronic signatures, are considered highly secure and use advanced encryption technologies.

What are the security measures for electronic signatures in Estonia?

Estonia employs robust security measures, including secure signature creation devices (SSCDs) and reliable identity verification methods, to ensure the integrity and authenticity of electronic signatures.

How widespread is the use of electronic signatures in Estonia?

Electronic signatures are widely used in Estonia, thanks to the country's advanced digital infrastructure, government support, and public trust in digital solutions.

Can I use an Estonian electronic signature for documents in other EU countries?

Generally, yes. Estonian qualified electronic signatures are recognized across the EU under the eIDAS Regulation.

Can non-residents use Estonian electronic signature services?

Yes, Estonia offers eResidency, which allows non-residents to access Estonian digital services, including eSignatures.

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Estonia stands as a pioneer in electronic signature adoption, with a robust legal framework and widespread acceptance across various sectors. As digital technology continues to evolve, Estonia remains committed to ensuring the security and legal recognition of electronic signatures, fostering an environment conducive to digital innovation and efficiency.

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

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