I'm currently bidding on a secondhand house and the bids have just reached €317,500. Am I correct in assuming the appropriate rate of stamp duty is calculated on this gross price and not the price after deducting 13.5% VAT?
On a secondhand property, VAT is not an issue for calculating stamp duty. At E317500.01, the Stamp Duty rate changes so the real cost for a purchaser is the increased price PLUS the increased stamp duty.
the problem with this is that frequently when bidding you come up against clueless people who push up prices without fully understanding the cost implications.