News
New Tax Subsidies on Relocation Costs and IT Installations
Since 2006 Sweden has experimented with tax subsidies of up to SEK 50,000 per person and year as part of a program to encourage the private purchase of household services. The subsidized services are divided into the two categories RUT, which includes housework and childcare, and ROT which includes house renovations and maintenance. The subsidies are in most cases applied for by the tradesman preforming the work, and thereby takes the form of a price deduction. The RUT and ROT subsidies have largely come to be regarded as a success, but the exact services covered have been changed several times since the its inception to maximize its positive effects for society at large.
From August 1st 2016 the RUT tax subsidy has been extended to relocation services, which can be expected to benefit the highly mobile expat community in Sweden. Under the new rules subsidies are to be granted for:
- Transportation of household goods from one home to another
- Transportation of household goods to and from storage facilities, as long as the storage is of a temporary nature and takes place at a step in the process of moving your household.
- Packing and unpacking.
The subsidy does not extend to the costs related to the vehicle used for the transportation, nor to fuel or the fee for storage.
Through the same legislative change, the RUT subsidy is also extended to the installation, repair and maintenance of computers, IT equipment and smart phones, as long as the work is performed by the tradesman in the purchaser’s own home. This deduction extends to work with networks and work with hardware such as printers and scanners. It does not, however, extend to IT customization or work involving computer controlled household appliances or alarms.