Supermodel Bar Refaeli recently filed a request with the Kfar Saba income tax assessor to stop paying taxes in Israel,
claiming she spends most of her time abroad and that "the center of my life is no longer in Israel."
It is in the Tax Authority's interest that Bar Refaeli continue paying her taxes in Israel, but a source in the Authority implied last week that her request cannot be turned down as she does not stay in Israel more than six months every year and most of her income is generated from her work abroad.
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Refaeli's income is generated from her work as a fashion model and her participation in many advertising campaigns.
Refaeli has founded a company abroad – apparently in Singapore or Hong Kong – where she will pay a maximum tax of 25%. In other words, she will pay abroad only half the amount of taxes she would have to pay in Israel.
Under Israeli law, a person who is absent from the country at least 184 days a year and who states that the center of his or her life is not in Israel (a person who does not have a partner or children living in Israel, a house and active bank accounts in Israel and whose income is mainly generated abroad) does not have to pay taxes in Israel.
According to border control records, Refaeli spent only five months in Israel in the past two years. Moreover, her income in Israel is very small compared to her income abroad, and the companies she works for are mostly foreign companies.
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