Glass globe with a padlock and a router

Selecting jurisdictions for a VPN service

Result

A jurisdiction matching the client’s requirements was chosen

The client received a comparative analysis of jurisdictions and a shortlist of countries for registration. The chosen jurisdiction meets the requirements on taxation, data protection and the absence of strict licensing.

  • ClientVPN service (IT company)
  • PracticeIT

The client’s task

The VPN service needed jurisdictions suited to its business: predictable taxation, strong personal data protection and no excessive licensing of VPN activity. It had to compare the options and choose a country for registration and operations.

Challenges and risks

  • Tension between strict data protection and registration and licensing requirements
  • Risk of reputational and political restrictions
  • Tax uncertainty and the risk of the activity being requalified

What we did

  1. Analysed tax legislation, political climate and reputation of the countries
  2. Selected jurisdictions with strong personal data protection laws
  3. Prioritised countries without strict registration and licensing of VPN services

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