'Our users deserve better' – PrivadoVPN set to leave Switzerland on privacy grounds

• PrivadoVPN told Techradar it is leaving Switzerland on privacy grounds
• The VPN provider is moving to Iceland
• Switzerland may soon expand surveillance obligations on VPNs

Strict data protection regulations and historical 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 prompted Privado VPN to move its headquarters out of the country, TechRadar can reveal.

The company told TechRadar it is currently relocating to Iceland, a country that provides exactly "what a privacy-focused VPN needs." This includes "clear legal limits on surveillance expansion, stable privacy law, and a strong baseline of protections for communications confidentiality," a company spokesperson told us.

The shift 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 telecoms and ISPs – to so-called "derived service providers", a category that includes messaging apps, social media platforms, and VPNs.

The proposal met fierce resistance from local politicians and tech firms including Proton, NymVPN, and Threema. While critics forced a revision, it seems the federal government still intends to expand its surveillance powers

While Privado did not provide a specific timeline, it confirmed the relocation will occur in stages to ensure a seamless transition over the coming months. It is not expected to impact user's experience of the app.

Why Iceland?

Iceland might not be the first name that comes to mind for privacy, but within the VPN industry, it's a well-established stronghold for data protection.

As a member of the European Economic Area (EEA), Iceland adheres to GDPR standards, providing some of the world’s most stringent data protection requirements. 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 toward broader data retention, Iceland remains a stable outlier. As PrivadoVPN explained: "Iceland treats VPNs as application layer service providers and not Telcos that require data retention and logging."

There is also no mandatory data retention for non-ISP services. Iceland’s radical stance on free speech – famously demonstrated by its role as a haven for WikiLeaks since 2010 – serves as a powerful signal of the nation's commitment to communication confidentiality.

While traditional "privacy havens" like Panama (home to NordVPN) and the British Virgin Islands (home to ExpressVPN) are still attractive because of their exclusion from major surveillance alliances, PrivadoVPN’s choice of Iceland suggests a different priority.

The company told Techradar that Iceland offers both serious privacy protections and institutional credibility. "Unlike offshore havens that offer secrecy without accountability, Iceland provides European standard data protection, strong rule of law, clear limits on data retention, and established legal institutions," a spokesperson from Privado said.

Beyond VPN jurisdications

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, while PrivadoVPN is moving its legal home to Iceland, a significant portion 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 at a technical level through a strict no-logs framework designed for total data minimization. The company said:

"Jurisdiction matters, but what you collect 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 major hub. What's certain is that PrivadoVPN’s move is unlikely to go unnoticed.

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