what’s an offshore account?

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Often I’ve heard reference to offshore accounts when discussing, say, taxes or banking. But I never understood what those are. So, what is an offshore account?

In: Economics

Offshore means not-in-the-country, or international. Generally, however, an offshore bank account is an account in a country that allows you to keep your banking confidential and protected from your own government. Usually as a means to keep the money secret so as not to pay taxes in your country or for hiding dirty money.

You’re an american citizen who makes an egregious amount of money you don’t want to lose it on something as *Worthless* as Taxes! (Heaven forbid you contribute to the country that enabled your wealth!)

So you find a country that doesn’t tax you nearly as much and you stash your money in a bank over there.