Offshore investing is about investing tactics taking advantage of opportunities that are available outside the country, where investor resides.
There are several advantages of offshore investing:
Tax Incentives: very often investors choose to invest abroad (usually in offshore banking centers), because host country’s business environment offers tax advantages that are not available in investor’s home country. Such jurisdictions deliberately design business investor, so that it becomes highly attractive to outside investors and they are ready to make offshore investment in such country. For instance, small Caribbean island-countries do not have much opportunity for economic development. Therefore what they do is they liberalize and improve their business environment to attract businesses making offshore investing. In this way they increase economic activity. To put this in other way businesses making offshore investing set up a corporation in host country and in this way shield their money from high tax rates effective in their country. Often the condition for low or no tax burden is that these corporations can not conduct any transaction in the local market. USA loses large tax revenues due to offshore investing in offshore banking centers. Recently authorities made several attempts to close the loopholes.
Asset Protection: offshore investing can be a great tool for those investors, who fear that their asset ownership is threatened due to potential lawsuit or excessive debt. Offshore banking centers are places, where individuals can transfer their assets to the legal persons and ensure that they assets are kept safe.
Anonymity: many offshore banking centers offer secrecy that is ensured by their special legislation. These countries 
have designed their laws so that individuals conducting offshore investment in these countries are guaranteed by the effective legislation that their identity shall not be disclosed to anyone. Such secrecy and confidentiality does not a priori mean that offshore investors are engaged in criminal activities, terrorism financing and they have something to hide. Client identity can be disclosed if client is linked to trafficking, money laundering, terrorism and other unlawful activities.
Risk Diversification: offshore investment gives a great opportunity to diversify investments and portfolio. Accounts used for offshore investing is highly flexible allowing investors to trading in international markets in any currency they desire. Besides investors find many opportunities in developing countries that they can not find at home, such as many government-owned enterprises that are privatized nowadays. For instance, China’s choice to privatize its public assets created great opportunities for international offshore investors, since China is a stable country continuously liberalizing its economy.