I’m an expat with considerable onshore savings and a salary payable anywhere in the world. Should I use an offshore bank, and if so, why?
Onshore banking is subject to the tax and foreign exchange rules of the country in which the account is held. Depending on the size of your savings, and the tax regime of your onshore jurisdiction, the price you pay is likely to be fairly high if your savings are ‘considerable’. Therefore, if you are interested in reducing your tax exposure, and with relatively higher confidentiality levels, it would make sense to examine the possibilities available to you offshore.
However, it is worth noting that some countries, for example the USA, tax world-wide income whatever your expatriation status. In this case, you will need to ascertain the position held by the country from which you are expatriating or have expatriated before making a decision.