Would this wheel setup work
 

I am looking at the konig lace in 18x8 with an off set of 35 and 45 for the staggered look and would be putting 225/40/18 tires on them. Would this setup work?

Changing the offset is not going to give you a staggered look, it will make the +35 10mm more flush than the +45. At which point you would be better off getting a 10mm spacer, that way you can still rotate your wheels.

If you want staggered you need wider wheels in the rear, in the case of the Konig Lace there is only 18x9.5 available.

Me personally, not a fan of those wheels but its your car.

thats going to ruin the ride of the car... go with a square setup in that case and use spacers if you want the wheels to be flush... but with staggered you want a smaller width in the front and wider in the rear i use 18x9.5s +38 offset with 265/35 tires and it looks great to me check out my pics

Did you get the Konig Laces?