If you are resident overseas, the taxation of your pension income will largely depend on what type of pension is being received and the tax rules in your country of residence. 

 

If you reside in Cyprus, under the terms of the UK/Cyprus Double Tax Treaty, all forms of pension arising in the UK (including Government Service Pensions) are taxable in Cyprus if you are resident there. 

 

In Cyprus, there are two methods of taxing pension income, but overall the maximum tax rate you will pay on your pension income is 5%. 

 

The lump sum can also be received tax free in Cyprus.