3. Paying tax

How much tax you’ll pay and where you pay it depends on where you’re considered to be a resident.

UK residents

You may have to pay UK tax on your State Pension if you live abroad but are classed as a UK resident for tax purposes. The amount you pay depends on your income.

Overseas residents

You may be taxed on your State Pension by the UK and the country where you live. If you pay tax twice, you can usually claim tax relief to get all or some of it back.

If the country you live in has a ‘double taxation agreement’ with the UK, you’ll only pay tax on your pension once. This may be to the UK or the country where you live, depending on that country’s tax agreement.