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 per 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 take 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 introduction of the RUT and ROT subsidies to maximize the positive effects for society at large.

Since 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 house
  • Packing and unpacking
The subsidy does not extend to the costs related to the vehicle used for the transportation, the fuel used by the vehicle nor for any storage fees.
Through the same legislative change, the RUT subsidy also extends 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.