The Balearic National and International Real Estate Association (ABINI) slammed the Balearic government this morning for planing to raise the tax rate on sales of homes valued at more than three million euros in an effort to raise additional funds.

At the moment there are more than 2,600 homes on sale across the Balearics with a price tag in excess of three million euros. Under government plans the tax rate will rise from 11.5 to 12 percent on sales of homes in this price bracket.

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The Balearic government claims that the move will have little impact on the market but real estate agents disagree stating that any rise in tax is never good news and will make some buyers think twice.

According to ABINI the Balearics already has one of the highest rates of tax in the country. "The increase in taxes under Balearic President Francina Armengol, has been unstoppable. In the Balearics we are champions when it comes to taxation on homes. For many years it has been said that the islands are a "tax hell," said the President of the Association Hans Lenz.

"The Balearic government should have consulted us first," he added.