Offshore Bank Account

Offshore Bank Account Meaning:
In banking terminology, the term offshore bank account refers to a type of bank account with a financial institution in a jurisdiction where the depositor is not usually domiciled. offshore bank accounts may be used by people who have a vacation home abroad or who wish to keep funds outside of their domestic country for other purposes.

For example, an Offshore Bank Account might be opened by a United States’ citizen in Mexico when they are primarily living in the United States. They might do this to pay for a vacation home they are buying in Mexico and/or to make payments in Mexican Pesos for the property’s ongoing utility expenses and upkeep costs. Alternatively, they might use their offshore bank account denominated in Mexican Pesos to invest in the Mexican Peso relative to their domestic currency the U.S. Dollar. An offshore bank account does not have to be opened in a tax haven country, only in a country where the account holder is generally not a resident.