Tax residence in Ireland is assumed if an individual has spent more than half a tax year in the country, or more than 280 days over 2 consecutive tax years. If this is the case, they will be taxed on world-wide income. If an individual is resident but not domiciled in Ireland (normally difficult to achieve for an Irish national), they will pay tax on foreign source income only if it is remitted to Ireland. Non-residents pay tax only on income earned in the country.

The International Financial Services Centre has created a favourable environment for offshore banking, although there are no specific forms of company or entity designed for ‘offshore’ as such, more a variety of special regimes offering low taxation. Banks in the IFSC don't have to deduct withholding tax on interest payments made to non-residents. Therefore an Irish expatriate will not have to pay tax on interest from deposits in the IFSC.

Given that there is a wide range of banking facilities available in the IFSC, there is no direct fiscal reason for an Irish expatriate to bank elsewhere, although there can be other reasons to go offshore such as asset protection. By 2003, the IFSC no longer had specific fiscal advantages, but most banks remain there anyway.

As from July, 2005, Ireland supplies information about the returns on savings paid to citizens of EU Member States, to their home States, under the EU Savings Tax Directive.

The Isle of Man, with in the region of 50 banking operations established, is a prime location for foreign nationals wishing to bank offshore. Deposits in the year to 31st March 2007 increased by GBP6.56 billion (16.65%) to GBP45.95 billion, according to the FSC.

The industry on the island is dominated by branches or subsidiaries of the main UK clearing banks, although there are also some foreign banks. Banking services provided range from deposit taking to establishing and administering trusts, managing the underlying companies and assets held by those trusts, and investment management. Banks on the Isle of Man are supervised by the Financial Services Commission.

The Banking Act recognises the contractual duty of a banker to keep the affairs of his customer confidential and the customers' entitlement to confidentiality, other than where disclosure is required to assist criminal proceedings or to enable the FSC to discharge its statutory functions.

All banking licence holders are required to participate in the Depositors Compensation Scheme. The FSC is the Scheme Manager. Deposits are protected up to 75% of the first GBP20,000 per depositor (or foreign currency equivalent).

A number of Manx banks offer a range of current and deposit accounts designed especially for non-residents and expatriates. There are no rules to prevent Irish nationals from opening an account in the Isle of Man, whether Irish resident or not. Accounts are available in a number of currencies, and interest rates are comparable with or slightly above those offered onshore. There are also banks offering Internet on-line banking services from the Isle of Man

By concession, deposit interest from Manx banks payable to non-residents (of Man) is exempt from income tax. Isle of Man residents would pay income tax, however.

As from July, 2005, the Isle of Man applies a withholding tax of 15% to the returns on savings paid to citizens of EU Member States, under the EU Savings Tax Directive.

As of June 2005, there were 50 licensed banking institutions in Guernsey. Figures released by the Guernsey Financial Services Commission in November, 2007, showed that the total value of deposits held with Guernsey banks reached a record record high of GBP112.7bn as at September 30, 2007 – up GBP23.3bn (26%) year on year. That represents an increase during the quarter of GBP4.6bn (4.2%).

Guernsey's banks are regulated by the Financial Services Commission (FSC). The FSC is extremely careful to exclude doubtful operations, and has capital adequacy rules which are stiffer than the Basle requirements.

A number of Guernsey banks offer a range of current and deposit accounts designed especially for non-residents and expatriates. There are no rules to prevent Irish nationals from opening an account in Guernsey, whether Irish resident or not. Accounts are available in a number of currencies, and interest rates are comparable with or slightly above those offered onshore.

By concession, deposit interest from Guernsey banks payable to non-residents (of Guernsey) is exempt from income tax. Guernsey residents would pay income tax, however.

As from July, 2005, Guernsey applies a withholding tax of 15% to the returns on savings paid to citizens of EU Member States, under the EU Savings Tax Directive.

The Jersey Financial Services Commission's quarterly report for the period to 30th September 2007 shows that almost 50 banks held bank deposits of GBP219.5 billion. These included subsidiaries or branches of the top banks from the US, the UK, Switzerland, Canada, Germany, Ireland, Israel, the Netherlands and Spain.

Banks are regulated by the Financial Services Commission, and capital adequacy rules are tighter than those under the Basle Convention.

Many Jersey banks offer a range of current and deposit accounts designed especially for non-residents and expatriates. There are no rules to prevent Irish nationals from opening an account in Jersey, whether Irish resident or not. Accounts are available in a number of currencies, and interest rates are comparable with those offered onshore.

By concession, deposit interest from Jersey banks payable to non-residents (of Jersey) is exempt from income tax. Jersey residents would pay income tax, however.

As from July, 2005, Jersey applies a withholding tax of 15% to the returns on savings paid to citizens of EU Member States, under the EU Savings Tax Directive.