Yeah that is the true definition of it.

But in terms of server locations and what not, it has come to mean "a country you do not reside in". For example, the US is offshore to me, using that definition.

It's just what people thought it meant, so it stuck. Same reason they now think it means non-us countries.
JmZ Reviewed by JmZ on . Define offshore Hi guys, Strange thing that I've encountered whilst on this forum is the way the term "offshore" is thrown about at anyone outside of the U.S. Surely this is slightly mis-leading, I've had countless people contact me and ask "Are your servers offshore?!" and when I reply with "No, they're in Germany; mainland Europe" they get confused, some even try to correct me and say Germany is offshore. What do you use the term "offshore" for, or what do you feel it should be used for. I've seen Rating: 5