Second-home owners again fight Knokke-Heist tax: "New regulation is also unlawful"

Owners of second homes in the Belgian coastal municipality of Knokke-Heist are once again preparing to fight a municipal tax levied on their properties. This challenge comes after a court of appeal previously declared the supplementary tax illegal, finding the municipality's justification insufficient.

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For us, this is not a luxury tax. It is genuinely a tax needed to balance a budget, and it is only asked of second-home owners.

Despite the earlier ruling, Knokke-Heist has issued new tax assessments for 2026 based on a revised regulation. However, the owners, represented by lawyer Bart Engelen, are contesting this new tax as well, arguing it still violates fundamental constitutional principles of equality and non-discrimination.

The core of the dispute lies in the municipality's assertion that the tax on second homes functions as a "luxury tax." The second-home owners argue it is simply a tax needed to balance the municipal budget, unfairly targeting a specific group. They contend that the municipality should also levy such taxes on its permanent residents.

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The case law is certainly in our favor. The fact that the court of appeal has confirmed the ruling strengthens our suspicion that we have a strong case and that this tax will also be labeled as discrimination under the new regulation.

Engelen expressed confidence that the second-home owners will prevail again, citing the consistent legal precedent. He noted that the court of appeal's confirmation of the tax's illegality strengthens their position. The legal process is expected to take up to two years for a new ruling.

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When second-home owners decide to dispute the tax, they are not obliged to pay it as long as the procedure is ongoing.