De Haan also bites the dust regarding the tax on second homes

Many towns and villages levy a tax on second homes. This was levied, originally, because a second home – a house or an apartment where the owner is not tax resident – means a loss of revenue for the town or village. Towns and villages, you see, can only collect local tax surcharges based on the personal income tax declarations of those domiciled there. By taxing non-domiciled owners of a second home via the tax on second homes, the town or village can receive extra revenue.

However, in the past decade – and mainly in the towns and villages on the coast – a less acceptable trend has been observed. Taxes on second homes are being raised systematically as funding for urban spend. Tax residents in those towns and villages have, however, been spared – their local rates won’t be going up much, or not at all.

Their fiscal autonomy and the pretty simple way of collecting tax on second homes, has even tempted a few towns and villages (including the town of De Haan) to tax owners of second homes on or near the coast more than second-home owners who live more inland.

Well, it’s this rule, with several different tax rates depending on where the second residence is located, that infringes the principle of equal treatment, according to the Court of First Instance West-Flanders, Bruges District. The Court held that De Haan Town Council could not submit reasonable grounds for these different rates. This ruling means that the taxpayer who brought this case can look forward to a full rebate of the tax on second homes.

Other owners of a second home in De Haan can seize the Brugean ruling in order to get the municipal tax on second homes refunded. To do that, they must institute proceedings individually. Naturally, our team of attorneys can assist you with that.