Electronic signatures are fully legal and widely utilized in Finland, one of the most digitally advanced nations in the European Union. The legal framework is extremely permissive for most contracts, adhering to the principle of “freedom of form.” However, as an EU member state, Finland also enforces a strict tiered model for higher-risk or statutorily mandated transactions.
Overview and Legal Framework
The legality of electronic signatures in Finland rests on two key legislative pillars: the principle of freedom of contract in Finnish law and the mandatory eIDAS Regulation of the European Union.
1. Freedom of Form Principle
In general, Finnish contract law operates under the principle of freedom of form, meaning that a contract is typically considered valid and legally binding when two or more legally competent parties reach an agreement. This agreement can be verbal, electronic, or on paper. A wet-ink signature is not a prerequisite for most contracts unless specifically required by law. Consequently, Standard Electronic Signatures (SES) are often sufficient for general business and low-risk transactions.
2. The eIDAS Regulation
As an EU Member State, Finland is directly governed by Regulation (EU) No 910/2014, known as the eIDAS Regulation (Electronic Identification and Trust Services). This regulation ensures that electronic signatures have legal effect and are recognized across all EU/EEA member states.
The national implementation and supplementary provisions are primarily found in The Act on Strong Electronic Identification and Electronic Trust Services (617/2009, as amended).
The Tiered eIDAS Model
The eIDAS Regulation establishes a tiered system for electronic signatures:
| Signature Type | Description | Legal Effect | Key Feature |
| 1. Standard Electronic Signature (SES) | Basic digital data, like a scanned image of a signature, a typed name in an email, or clicking an “I Accept” button. | It cannot be denied legal effect and is admissible as evidence in court. | It cannot be denied legal effect and is admissible as evidence in court. |
| 2. Advanced Electronic Signature (AES) | Uniquely linked to the signer, capable of identifying them, and created using signature creation data under the signer’s sole control. Any subsequent change to the data is detectable. | Offers stronger evidentiary value and higher assurance of integrity. | Commonly achieved via secure digital identity services like Finnish online banking credentials (sometimes referred to as Strong Authentication). |
| 3. Qualified Electronic Signature (QES) | An AES that is created by a Qualified Signature Creation Device (QSCD) and is based on a Qualified Certificate issued by an accredited EU/EEA Qualified Trust Service Provider (QTSP). | Legal equivalent of a handwritten signature across all EU/EEA countries. | Carries a presumption of validity in court; the burden of proof is shifted to the challenger. |
Documents That Can Be Signed Electronically
Due to the fundamental “freedom of form” principle, the vast majority of commercial and consumer contracts can be executed using an electronic signature, with an AES or QES generally preferred for security and enforceability in high-value cases.
Documents typically suitable for SES/AES include:
i. Commercial Contracts: General sales agreements, Non-Disclosure Agreements (NDAs), standard Intellectual Property (IP) licenses, and business-to-business (B2B) agreements.
ii. Employment: General employment contracts, HR documents, benefits paperwork, and internal company policies (unless a specific collective bargaining agreement dictates a formal signed format).
iii. Leases: Commercial lease agreements and residential lease agreements (though land lease agreements have specific, higher requirements).
iv. Corporate Documents: Minutes of routine shareholder or board meetings are provided the company’s articles do not impose stricter requirements.
Using Strong Authentication (AES/QES)
Finland has a highly developed infrastructure for Strong Authentication (often aligning with AES or QES requirements), typically provided via bank credentials or the National Digital and Population Data Services Agency’s certificate. This is the default standard for secure online transactions and is accepted by public administration for many processes.
Documents That Cannot Be Signed Electronically
Finnish law reserves a small but critical category of documents for which the electronic format is explicitly prohibited or for which a specific formal process (like witnessing or physical notary involvement) is mandated, making electronic execution invalid outside a designated governmental system.
Documents that cannot be signed with a general electronic signature (requiring wet-ink or specialized digital execution):
i. Real Property Transfers: Deeds for the sale, transfer, or exchange of real property (land and buildings) and preliminary property transfer deeds. These documents must be executed in the presence of a Public Notary (Kaupanvahvistaja) or completed exclusively through the Finnish Property Transaction Service (an electronic trading system maintained by the National Land Survey of Finland), which requires strong authentication (QES equivalent).
ii. Wills and Testamentary Documents: The Finnish Code of Inheritance requires a will to be signed in the simultaneous presence of two disinterested, competent witnesses. This formal requirement for in-person witnesses currently makes general electronic signing insufficient.
iii. Family Law: Prenuptial agreements and certain other contracts governed by family law often require a formal, written format and registration that necessitates a wet-ink signature or a highly formalized digital process.
iv. Notarized Deeds: Any document where the law explicitly demands a public deed or notarization to certify the signature, as this often requires the physical presence and seal of a notary public.
Notable Changes in the Laws
The most significant changes in the Finnish e-signature landscape are driven by the evolution of the EU’s eIDAS Regulation:
1. Direct eIDAS Application (2016): The eIDAS Regulation replaced the earlier e-Signatures Directive (1999/93/EC), solidifying the three-tiered structure (SES, AES, QES) and, most importantly, ensuring the cross-border recognition of QES. This simplified international digital commerce for Finnish businesses.
2. Harmonization of Real Estate: Continuous updates to the Finnish Code of Real Estate have created a dedicated, government-run digital platform (Finnish Property Transaction Service) for real estate conveyances. While this system allows for electronic execution using strong authentication (QES-level), it essentially bypasses the general e-signature market, keeping these transactions under strict state control.
3. eIDAS 2.0 and the EUDI Wallet (Ongoing): The revised eIDAS Regulation (often referred to as eIDAS 2.0, adopted in 2024) is the most recent and impactful development. It will mandate that all EU member states, including Finland, issue a European Digital Identity Wallet (EUDI Wallet) by late 2026. This wallet is intended to provide citizens with a secure, voluntary mobile application for digital identification and the creation of Qualified Electronic Signatures (QES). The goal is to make cross-border digital identity and QES usage seamless and ubiquitous, significantly boosting digital trust services across Europe. Finland’s Ministry of Finance is actively leading the national project for its implementation.
Disclaimer
The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, so Flowmono cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a legal practitioner in your area.
References
1. Valtiovarainministeriö (Ministry of Finance) – Information on the Revised eIDAS Regulation and EUDI Wallet Implementation.
2. Regulation (EU) No 910/2014 of the European Parliament and of the Council (eIDAS Regulation).
3. Act on Strong Electronic Identification and Electronic Trust Services (617/2009, as amended) (National supplementary law to eIDAS).
4. Contracts Act (Finnish Contracts Act, 1929) (Establishing the fundamental “freedom of form” principle).
5. Finnish Code of Real Estate (Maakaari 540/1995) (Governing property transfers).
6. Finnish Code of Inheritance (Perintökaari 40/1965) (Governing wills).
