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A significant number of Finnish homeowners are willing to bypass legal payment practices when hiring friends for home renovations, according to a new survey commissioned by Stark Finland.
The survey, part of Stark’s annual Finns Renovate and Build report, found that 35% of respondents either support or are willing to pay for renovation work in cash without a receipt — provided the work is done by someone they know.
The research was carried out by Bilendi in January 2025 and included responses from 1,000 Finns aged 18 to 74. The results follow recent reductions in the household tax deduction scheme, which had previously encouraged legal contracting for domestic services.
Harri Päiväniemi, CEO of Stark Finland, called the findings alarming.
“This is a worrying result, no question,” he said. “Cash-in-hand work is illegal and offers no benefits to workers or society. It doesn’t contribute to pensions, workers are not insured for accidents, and tax revenues are lost. This damages both the welfare state and the construction sector’s reputation.”
Päiväniemi said that reducing the household deduction at a time when cost pressures are already high may have unintended consequences.
“This move risks encouraging more undeclared work. The deduction sends a clear signal about doing things properly,” he said.
The survey found clear demographic patterns in attitudes toward undeclared work.
Among high-income earners, 41% said they were open to paying for a renovation in cash if the contractor was a personal acquaintance. Among the lowest income group, the figure was 32%.
Age also played a role. Only 20% of respondents aged 18–29 said they would never pay cash-in-hand under any circumstances, suggesting younger adults are more permissive toward the practice. In contrast, 62% of those over 70 said they would never engage in undeclared payment — the highest share of any age group.
Across all respondents, 45% said they would never consider paying for renovation work off the books.
While most respondents expressed awareness of the legal and ethical concerns associated with cash-in-hand payments, the temptation to save money and help a friend appears to override those concerns for a significant portion of the population.
The findings have renewed calls from industry leaders and economists to address the grey economy in domestic contracting, particularly in a sector where trust-based arrangements and informal work are common.
HT
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Source: www.helsinkitimes.fi
