What is an ‘Offshore Bank Account’?
An offshore bank is a bank located outside the country of residence of its depositors, with most of its account holders being non-residents of the jurisdiction. An account held in a foreign account, especially in a tax haven country, is often described as an offshore account. Typically, an individual or company will maintain an offshore account in a low-tax jurisdiction (or tax haven) that provides financial and legal advantages, such as:
- greater privacy.
- little or no taxation (i.e. tax havens).
- easy access to deposits (at least in terms of regulation).
- protection against local, political, or financial instability.