Definition of offshore

The origin of the word "offshore" dates back to the 17th century. Initially, it referred to the area of the sea outside a country's territorial waters, where naval vessels were typically stationed. In the 18th century, the term gained a new meaning in the context of international finance. "Offshore" began to describe financial activities conducted outside the regulatory scope of one's home country, often in tax havens or jurisdictions with favorable financial conditions. This sense of "offshore" was initially used to describe international trade and financial transactions, but over time it expanded to encompass various activities such as banking, insurance, and even corporate structures. Today, "offshore" encompasses a broad range of financial and economic activities that operate outside the regulatory boundaries of a particular country or jurisdiction.