People that say location doesn't matter have no clue how online games work.
Anyway, you should first research what a VPS is and its technical limitations when compared to a dedicated server, especially on Windows.
Secondly, VPS usually have low storage and extensions are expensive, you will (should) want to keep logs and backups for at least a few months. Unless you have an offer that includes SSD by default then don't waste your money on SSD hardware, the only times a MU server will generate disk activity are the initial start, writing logs and database backups. Long story short, you and the players will get 0 benefits in terms of gameplay.
If budget is an issue, I would get the cheapest dedicated server available with 4 cores, 8 GB of RAM that also has DDoS protection and good peering to the target country.
For web hosting the latency would be minimal if you choose the same provider but it is not vital to be so.
P.S. You can always upgrade to a better machine, after your server grows.