Bar Refaeli has resolved her row with the Israeli tax authority, which refused to allow the supermodel to register as an expat.

Ms Refaeli, the on-off girlfriend of Leonardo DiCaprio, had requested exemption from Israeli tax because she is resident abroad.

She broke up with Mr DiCaprio in June last year, but the pair have been spotted taking a holiday to Italy together earlier this month, fuelling rumours the romance is back on.

The model, who has been the face of campaigns for Victoria’s Secret and Israeli clothing line Fox, has now reached an agreement with the tax authority.

She could not prove that she lived abroad for more than 183 days a year, or that her centre of life — including a spouse, family or permanent home — was not in Israel.

She also faced questioning over a Cyprus bank account, and details of her income, which is listed under the name of a company in Singapore.

Ms Refaeli will now pay tax in Israel up to 25 per cent of her income, and after that will receive exemption.