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 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. However, tax breaks for IFSC companies were abolished by the Irish government after an investigation by the European Union concluded that the scheme constituted state aid, and therefore breached EU competition laws, which attempt to maintain a level playing field across the common market.

By 2003, the IFSC no longer had specific fiscal advantages, but most banks remain there anyway. The centre is host to half of the world's top 50 banks and to half of the top 20 insurance companies. Merrill Lynch, Sumitomo Bank, ABN Amro, Citibank, AIG, JP Morgan (Chase), Commerzbank, BNP and EMRO are just some of the big-name operations that have chosen to locate in the area.

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 36 banking operations established, is a prime location for foreign nationals wishing to bank offshore. At the end of June 2010, total deposits stood at a shade under GBP52bn.

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. Initally, deposits were protected up to 75% of the first GBP20,000 per depositor (or foreign currency equivalent). But in 2008, then Treasury Minister Allan Bell announced that the limit of protection for deposits of individuals would be rasied to a maximum of 100% of GBP50,000.

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 to the returns on savings paid to citizens of EU Member States, under the EU Savings Tax Directive. This is currently 20%, but will rise to 35% on July 1, 2011.