- PrivadoVPN told Techradar it will leave Switzerland over privacy concerns
- VPN provider moves to Iceland
- Switzerland could soon expand VPN surveillance obligations
Strict data protection regulations and historic political neutrality have helped Switzerland earn its reputation as a “privacy haven,” attracting developers of digital security tools, cloud hosting and encrypted software.
However, that status is now under threat, a prospect that has led Privado VPN to move its headquarters out of the country, TechRadar can reveal.
The company told TechRadar that it is currently moving to Iceland, a country that offers exactly “what a privacy-focused VPN needs.” This includes “clear legal limits on the expansion of surveillance, a stable privacy law and a solid foundation of protection for the confidentiality of communications,” a company spokesperson told us.
The change began in March 2025, when the Swiss government proposed amending its surveillance law. The changes would expand monitoring and data collection obligations, previously reserved for telecommunications and ISPs, to so-called “derivative service providers,” a category that includes messaging apps, social media platforms and VPNs.
The proposal was met with fierce resistance from local politicians and technology companies, including Proton, NymVPN and Threema. While critics have forced a review, it appears the federal government still intends to expand its surveillance powers.
While Privado did not provide a specific timeline, it confirmed that the relocation will be done in stages to ensure a smooth transition over the coming months. It is not expected to affect the user experience with the application.
Why Iceland?
Iceland may not be the first name that comes to mind in terms of privacy, but within the VPN industry, it is a well-established bastion for data protection.
As a member of the European Economic Area (EEA), Iceland adheres to GDPR standards, providing some of the strictest data protection requirements in the world. This includes the “privacy by design” mandate, which forces companies to integrate user security into the very architecture of their services.
As Switzerland and parts of the EU move towards broader data retention, Iceland remains a stable outlier. As PrivadoVPN explained: “Iceland treats VPNs as application layer service providers and not as telcos that require data retention and logging.”
There is also no mandatory data retention for non-ISP services. Iceland’s radical stance on freedom of expression – famously demonstrated by its role as a haven for WikiLeaks since 2010 – serves as a powerful signal of the nation’s commitment to the confidentiality of communications.
While traditional “privacy havens” like Panama (home of NordVPN) and the British Virgin Islands (home of ExpressVPN) remain attractive due to their exclusion from major surveillance alliances, PrivadoVPN’s choice of Iceland suggests a different priority.
The company told Techradar that Iceland offers serious privacy protections and institutional credibility. “Unlike offshore havens that offer secrecy without accountability, Iceland offers European standard data protection, a strong rule of law, clear limits on data retention and established legal institutions,” a Privado spokesperson said.
Beyond VPN jurisdictions
VPN jurisdiction remains a critical factor when choosing a VPN provider, as it dictates the legal framework and government policies that govern its operations.
However, although PrivadoVPN is moving its legal headquarters to Iceland, a significant part of its infrastructure is based in the US, a core member of the “Five Eyes” intelligence-sharing alliance.
When asked about the risks of US-based infrastructure, PrivadoVPN told TechRadar that these concerns are mitigated on a technical level through a strict log-free framework designed for complete data minimization. The company said:
“Jurisdiction matters, but what is collected matters more. We optimize both.”
It remains to be seen whether other privacy-focused providers will follow suit and transform Iceland into the industry’s next big hub. What is certain is that PrivadoVPN’s move is unlikely to go unnoticed.
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