An offshore account pertains to an account registered in a jurisdiction different to the jurisdiction of the owner’s citizenship. Simply put, it is a foreign account that the individual or company maintains that come with benefits such as:
- Increased privacy
- Little to zero taxation
- Easier access to deposits
- Heightened protection from local, political, or financial meltdowns.
The term, “offshore” actually comes from the Channel Islands, with it being literally offshore from the United Kingdom. It then went on to be used figuratively when referring to any bank that enjoys the same set of benefits, regardless of location.