Offshore financial centre

An offshore financial centre is a jurisdiction that provides financial services to nonresidents, often under tax, regulatory, or confidentiality rules different from those in their home jurisdictions.

International financial centre: A city or jurisdiction that concentrates financial institutions and cross-border financial activity. Offshore centres are a specialized form of international financial centre serving nonresident clients.
Offshore banking: Banking services provided by institutions to clients outside the jurisdiction where the institution is located. It is a core service offered by many offshore financial centres.
Base erosion and profit shifting: Tax-planning strategies that exploit gaps and mismatches in international tax rules to shift profits from taxable jurisdictions. Offshore structures can facilitate the profit shifting addressed by international tax reforms.
Onshore financial centre: A financial centre primarily serving clients and institutions within its own jurisdiction. It contrasts with the nonresident-focused services that define an offshore centre.
Special purpose entity: A legally separate entity created for a defined financial or commercial purpose. Such entities often hold assets or issue securities through offshore jurisdictions.
International business company: A company incorporated in a jurisdiction, commonly for business conducted primarily outside it. These companies are a familiar vehicle for holding assets and conducting cross-border business.
Tax haven: A jurisdiction that offers low or no taxes and may attract income or assets from elsewhere. The label emphasizes tax advantages, while offshore financial centre also includes jurisdictions with broader financial services.
Tax evasion: The illegal nonpayment or underpayment of taxes through concealment or misrepresentation. Offshore services can be used lawfully or unlawfully; offshore status alone does not establish evasion.
Trust law: The body of law governing arrangements in which trustees hold property for beneficiaries. Trust structures can separate legal ownership from beneficial interests in offshore wealth management.
Captive insurance: An insurer established by a business or group to cover risks within that organization. Some centres host captive insurers because their regulatory frameworks accommodate specialized insurance structures.

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