'BPS when construction is done by yourself?' Construction and Renovation

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BPS when construction is done by yourself?

I have a question regarding the BPS-system over here when constructing your house. At this moment we do already have a house, but we want to expand it a little bit. We want to do it by ourselves.

The only thing I can remember what I've heard of is that you pay BPS as well when you are doing any work at your own home by yourself. When we bought the house, everything was described at the drawing of the house, kind of tiles at the wall, sizes, where the parilla is located etc. So when you resell your house, the municipalidad can see what things have been changed at your house because the new drawing of the house will show the differences.

So I think, but I am not sure, that you have to pay BPS for the work done at your house. Even when it is done by yourself? We do not have residency, so do we actually need to pay BPS?

Anyone a clear answer at my vague question?

Thanks!

In rural areas the BPS rarely go looking for new building works as no planning consent is needed so there is no handy paper trail. Barracas are supposed to report materials purchases over a certain quantities but some do, some don't and some don't mind you assuming an alias. The main danger is in being denounced to the BPS by an enemy.

If you plan to sell the place within 10 years you'll almost certainly be caught at the point of sale so its usually best to visit your local BPS office and get the necessary forms at the start. I understand that the surveyors are usually helpful in giving you an estimate of the likely BPS contributions due for a particular DIY project.

OTOH if you aren't planning to sell it, there is a general amnesty available to evaders 10 years after completion.

BPS contributions apply to various strange things. Simply owning 3ha or more of farmland renders you liable to pay it whether you are a resident or not.

I thought that you had to pay BPS for your retirement for example. As I am not a resident in Uruguay, does this still applies for me? Or do I pay a kind of BPS because I am 'earning' money in the sence that I'm improving my house and thus gaining income?

You are both right and wrong. BPS contributions go towards various social services like healthcare, pensions, injury and unemployment benefits etc which you can claim if you are a resident who is employed or unipersonalized.

However, there are other non-employment related things like doing DIY building works or just owning more than 3 hectares of farmland which render you liable to pay even though you are not a resident and have no entitlement to the benefits.

One of the reasons I unipersonalized myself as a small farmer was to earn myself these benefits. Before unipersonalization I was paying 10, 000 pesos a year without benefits. Since agricultural unipersonalization I now pay 15, 500 pesos a year but I get health mutualista membership included and hopefully a minuscule pension in 4 years time.

The basis of the system involves employment contributions but it has also been extended to cover other things like farmland ownership and DIY building works.

• Banco de Prevision Social

Expert Page: Quick Tips for Getting Settled in Uruguay

Do it yourself building I assume?

So, I want to expand my kitchen with 8 m2. So I need to go to an architect, let him/her make a drawing(I can do it by myself as well) and then I have to go to the BPS and Municipalidad to announce my building and they are estimating a value which I have to pay to BPS? That's what I not get. Do I pay for the work I do by myself or is it just a fixed value for certain types and square meters of construction?

As I don't have a car and have to travel an hour by bus to the city, I'd love to be well prepared in stead of travelling up and forth five times a week. I'm not in a rural area.

Unipersonalization is the process involved when an individual registers him/herself as self-employed. For most occupations this will involve paying the BPS sitro 30k pesos a year but for various rural and agricultural occupations, the annual charge is about half as much.

The BPS is the Banco de Previsión Social... a semi-autonomous quasi governmental organisation which collects contributions from the employed, employers, the self-employed, owners of more than 3 hectares of farmland, constructors (DIY and conventional) and goodness knows who else. The BPS them used the money for various social and welfare expenditures like contributions to health mutualistas, pensions, sickness benefits, industrial accidents and heaven knows what else.

There seems to be two methods involved for paying BPS on construction work. Either you pay BPS on your workers wages as you pay them or you can pay on a per square meter basis. Most construction work here is done on a fixed price labour contract. Although the actual employment contract is between the workers and the contractor and the client's only contract is with the contractor, uru-employment law holds both the contractor and the client liable for the BPS payments due. As many contractors are careful to ensure that they have few assets in their own names, the liability usually ends up with the client.

If you do the work yourself the only option available to the BPS is to charge you by the square meter.

How true :-)

I solved the problem by visiting my local BPS office, explaining my request to the receptionist and waiting for an hour before seeing a BPS funcionario who knew about these things.

When the new income tax on foreign income comes into force in January, I plan to visit the DGI offices c/w picnic, flask, folding chair, book and dictaphone and remain there until a kindly funcionario explains to me exactly what I must do :-)

In my little world, the term "picnic" includes suitable bottles... tannat when its cold or cabernet sauvignon when the weather is warmer and pomelo light if my proposed questions are complex :-)

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