An offshore jurisdiction, or offshore financial centre, is simply an area that specialises in offshore banking, and usually has low rates of tax.
There are numerous benefits that are associated with offshore banking, especially for expats. One of the main reasons many expatriates choose to bank offshore is the lessening of tax liabilities. As an expat you may become a non-resident of your native country, in which case if you manage all your finances in an offshore account you may be able to legitimately avoid paying taxes in your native country, instead paying, often favourable rates of, tax in your offshore jurisdiction.
Offshore banking also brings with it greater levels of convenience for the international expat. For instance, with an offshore account most of the time you will have the option of managing your money in different currencies. As an expat you may receive pay in one currency, have to pay bills in another while also needing to know how this will translate into the currency of your true home. Taking into consideration the needs of an international customer, most offshore banks also offer 24 hour access and assistance.
Within an offshore jurisdiction you may also find that you have more options with regards to possible investments and financial products. The financial institutions in offshore jurisdictions are more tuned to the mind of the expatriate investor, and as such they will offer products that reflect the international attitude.
To find out more about offshore banking get in touch with a recommended IFA.