Boom in Swedish cleaning companies

Two months before the introduction of Swedish government's plan to give tax relief for home cleaning and childcare services, the number of companies established to offer such services is already booming, according to new statistics.

“Interest has skyrocketed,” said Pia Blank Thörnroos of the Swedish Tax Authority.

The new tax break will come into effect from July 1st, allowing tax relief on 50 percent of the cost of domestic services, to a maximum level of 100,000 kronor per person per year. This means that a household with two parents and a child under 18 living at home can get tax relief on cleaning, gardening or other services worth 300,000 kronor per year.

The services must be carried out by somebody employed by a cleaning company or someone registered as a sole trader.

The statistics, compiled by news agency TT, show that many companies are hoping to cash in on the expected boom in the market. Between January and March he tax authority received 467 applications to start companies in the cleaning and social services sectors, an increase of 20 percent compared with last year.

“Interest in April was up significantly,” said Thörnroos.

Figures from Statistics Sweden showed the same tendency. Between the beginning of January and the first week of May, 488 companies had been founded in the cleaning sector. This is an increase of 37 percent compared to the same period last year. A number of internet sites have also appeared to connect cleaners to potential customers.