According to TechRadar, PrivadoVPN is relocating its headquarters from Switzerland to Iceland. The move, which began in March 2025, is a direct response to proposed Swiss legal amendments that would expand surveillance and data collection obligations to VPN providers, treating them like telecom companies. The company told TechRadar it chose Iceland for its “clear legal limits on surveillance expansion” and strong protections for communications confidentiality. While the relocation is happening in stages over the coming months, PrivadoVPN says it won’t impact the user app experience. The proposal in Switzerland has faced fierce resistance from other local tech firms like Proton and Threema.
Switzerland’s Privacy Brand Takes A Hit
This is a big deal. Switzerland has built a whole industry around its “privacy haven” reputation. It’s the home base for Proton Mail, Threema, and a bunch of other security-focused companies. For a VPN to publicly bail because the legal foundation is shifting? That’s a powerful signal. It tells you the proposed changes aren’t just minor tweaks; they’re fundamental enough to scare off a business whose entire product is built on trust. And here’s the thing: even though critics forced a revision of the law, the government apparently still wants that expanded power. So Privado isn’t waiting around to see the final, watered-down version. They’re voting with their feet.
Why Iceland Is The New Sanctuary
Iceland might seem like an odd choice, but it makes a ton of sense when you look closer. It’s not an “offshore haven” like Panama or the British Virgin Islands. It’s a country with a strong rule of law and institutional credibility, but with a famously radical stance on free speech and confidentiality. Remember, this is the country that became a haven for WikiLeaks. Legally, Iceland treats VPNs as application service providers, not telecommunications carriers. That’s a crucial distinction. It means they aren’t subject to mandatory data retention laws. For a no-logs VPN, that’s the dream scenario: a government that legally can’t force you to keep data you don’t want to collect anyway.
The US Infrastructure Elephant In The Room
Now, let’s get skeptical for a second. Privado is moving its legal home to Iceland, which is great. But the company also told TechRadar that a “significant portion” of its server infrastructure is based in the United States. The US, of course, is the heart of the Five Eyes intelligence alliance. That seems like a massive contradiction, right? Privado’s argument is that jurisdiction matters, but what you collect matters more. They claim a strict no-logs framework and data minimization at the technical level mitigates the risk. Basically, if there’s no data on the US servers to seize or intercept, then the location is less critical. It’s a fair point in theory, but it puts a huge amount of trust in their technical implementation. The legal shield is in Iceland, but the physical hardware is in a much more aggressive surveillance jurisdiction.
A Tipping Point For The VPN Industry?
The big question now is: who follows? If Switzerland passes these expanded surveillance rules, does Proton—a much bigger player—consider its options? Does this start a domino effect where Iceland becomes the new, credible hub for privacy tech? This move highlights how fragile the whole “privacy jurisdiction” game is. Laws can change. Governments can change their minds. A country’s brand can evaporate with a single legislative proposal. For users, it’s a reminder that you can’t just check a company’s “home base” and call it a day. You have to dig into their logging policy, their infrastructure, and their transparency. Privado is making a bold bet on Iceland’s stability. Let’s see if it pays off.
