BPS Construction in Uruguay (2026): Contributions, Registration, and How to Verify It

INGAR · 2026-09-02 · New Construction

Figures and regulations last verified: September 2, 2026. Peso amounts are updated periodically; you'll find the official links at the end of this article to confirm them.

What "construction BPS" means and why it matters to you

Construction BPS matters at two points: when you are buying a property where renovations have already been carried out, and when you own a property and are about to start new work.

In the first case, an undeclared addition or renovation can delay closing and force the seller to bring it into compliance. In the second, starting without correctly defining the regime, registration, and who declares the workers can lead to fines, surcharges, and problems when you later want to sell.

As a general rule, construction, repair, renovation, or demolition work falls under the construction regime and must be registered, except for the exemptions and special arrangements the law provides for.

The project is registered, the workers are declared, the corresponding contributions are paid, and, when the job is finished, completion is reported. How this is done changes according to the type of work and who performs it: hiring a company is not the same as hiring workers directly, carrying out a small maintenance job, or using a self-build arrangement.

At INGAR we usually encounter the problem once a sale is already well advanced and work that nobody had mentioned comes to light. But the ideal approach is to avoid it from the outset: if you have just bought and want to renovate, define the classification before work begins.

This guide explains what to do before starting a project, how to estimate contributions, and what must be checked when the property is sold.

How the system works

Uruguay has a special social security contribution regime for construction industry workers who work directly on site. It is governed primarily by Decree-Law 14.411 and Decree 951/975.

The general process works like this:

Registering the project. This can be done starting ten days before work begins and up to 48 business hours after it has started. Late registration can trigger penalties and registry fines.
Declarations and contributions. While the work is underway, the workers are declared monthly and contributions are paid. The main levy is called the Unified Construction Contribution (AUC), and the rate currently in force is 71.8% of taxable pay.
Completion of the work. Once the job is done, closure must be reported within 30 calendar days. At that point, BPS may review how the characteristics of what was built line up with the workdays declared, assess any shortfall, or order an inspection of the property.

If the entire process was carried out correctly and BPS assesses no shortfall, the project will in principle have nothing outstanding on this front. Problems arise when some obligation went unmet or the information declared doesn't match what was actually built.

Who pays: the point most often misunderstood

This is one of the areas where the most misinformation circulates.

Article 5 of Decree-Law 14.411 establishes that the contributions are the responsibility of the owner of the property or the holder of property rights or possessory rights over it. Not necessarily of the company that did the work or of the bricklayers who took part.

Article 9 adds another important element: the debt generated by those contributions attaches to the property where the work was done, as a preferential lien in favor of the agency. That lien can survive even if the construction is torn down.

Registering a promise of sale can give a good-faith buyer additional protection against that lien (article 335 of Law 19.996). It does not replace the notary's involvement or the certificates required for the final deed.

Put precisely: the obligation falls on the owner or corresponding rights holder and, on top of that, the debt attaches to the property. That's why the problem isn't confined to whoever carried out the work: it can also follow the parcel itself.

Article 11 completes the picture. Without the certificate attesting to compliant status, the property cannot be mortgaged, transferred, or leased, and the officials involved must require it under their own responsibility.

The parties to those contracts — with the exception of tenants — along with the officials and professionals involved, may be held civilly and jointly liable if the transaction is carried out without the corresponding certificate.

For the buyer, the takeaway is clear: the fact that the seller did the work is not enough to eliminate the risk. Before buying, you need to verify the property's status.

Ways the work can be carried out

Arrangement	Who does the work and hires	Who registers the project	Specifics
Owner-managed	The owner manages the job and hires the workers directly	The owner of the project	Covers in-house workers, self-build, volunteer labor, and mutual-aid labor
Under contract	A registered contracting company	The owner registers the project and links the contractor to it	The contractor is the workers' employer. The AUC and, where applicable, the mutual health-insurance supplement remain the responsibility of the owner; the remaining labor and tax obligations for the workers fall on the contractor
Small-scale work	A contractor, exclusively	The contractor, acting as withholding agent	Up to 85 workdays, without altering the plans and without requiring a building permit

The practical difference between an owner-managed project and one under contract lies mainly in who manages and declares the workers. When you're buying, though, what matters is knowing how the project was registered, whether it has been closed out, and whether any amounts are owed.

The Unified Construction Contribution in 2026

The rate currently in force for the Unified Construction Contribution is 71.8% of the taxable pay of workers who work directly on site.

It covers masonry, plumbing, electrical, painting, and climate-control work performed as part of construction, repair, renovation, or demolition jobs.

According to the breakdown published by BPS:

Item	Rate
Employer social security contributions	9%
Employee social security contributions	17.9%
Wage-related charges: year-end bonus, leave, and vacation pay	29.9%
National Health Insurance	9%
BSE workers' compensation insurance	6%
Total AUC	71.8%

On top of this comes the levy earmarked for the Retirement and Pension Fund for University Professionals:

4% for architectural work, which brings the total to 75.8%.
2% for engineering work.

The rate is high because it bundles into a single monthly payment items that in other sectors are settled separately: pension, health, accident insurance, year-end bonus, leave, and vacation pay.

For the owner, the AUC serves as a starting point for sizing up the cost of declared labor, but it doesn't necessarily represent the final labor cost. Depending on the case, health-plan top-ups, sector funds, specific payments set by the collective wage agreement, and other items may be added.

That's why, before starting a project, it's worth asking whoever will manage it for a full cost breakdown.

If you already own the property and are about to start work

The best time to resolve the position with BPS is not when you want to sell, but before the first worker starts.

1. Define exactly what you are going to do

Calling it “a renovation” is not enough. You need to determine whether it is maintenance, a change to the layout, an extension, new construction, or demolition.

Moving partitions, adding floor area, or altering the structure can change the applicable regime and may also create obligations with the Intendencia and Catastro.

2. Check the property's current status

Before registering new work, check whether any earlier projects remain open or outstanding.

This is especially important if you intend to use the small maintenance work regime under Law 19.291, because the original construction must have the corresponding completion closure.

3. Decide who will perform the work

The obligation changes according to the arrangement:

If the work is performed by…	What you need to check
A company on a small maintenance job	The job is not registered individually if every condition is met. The company must be registered with BPS and DGI, issue an invoice, and meet its obligations
Workers you hire directly for a small job	You must register as a service user, declare the workers, contribute under Industry and Commerce, and obtain BSE coverage
A company under the general regime	The owner registers the project and the company declares its workers
A contractor under the minor works regime	The contractor registers the project as its holder and acts as withholding agent
You and your family, unpaid	Self-build may apply: the project is registered and recognition and exemption are requested before work begins

The calculator on this page provides initial guidance, but the final classification must be confirmed against the actual characteristics of the work.

4. Register the project on time

When the construction regime applies, registration can be made from ten days before the start and up to 48 business hours after work begins.

Do not wait until the end. Late registration can result in fines and also makes it harder to prove who worked, for how long, and under which arrangement.

5. Agree responsibilities in writing

If you hire a company, the quote or contract should state:

Who registers the project.
Who declares the workers.
Whether contributions are included in the price.
What documentation will be delivered on completion.
Who handles closure with BPS.
Who obtains departmental permits, where applicable.

A company's statement that it “takes care of everything” is not a substitute for the project number, invoices, and payment and closure evidence.

6. Keep the documentation

Keep contracts, invoices, receipts, payroll records, contribution receipts, the BSE policy, permits, and communications with professionals.

For small jobs performed by a company, the invoice must identify the address, period, and work performed. BPS says it must be kept for ten years.

7. Report completion

When the work ends, closure must be reported within 30 calendar days.

Depending on the case, you may also need to complete DGI filings, update Catastro, or close the construction file with the Intendencia.

Completing this process now avoids having to reconstruct all the documentation years later when you want to sell or mortgage the property.

What is actually checked at closing

It isn't true that every sale requires exactly the same documents, or that an architect always has to visit the property to compare the construction against the plans on file with Catastro, the national cadastre.

The procedure depends on the specific situation of the parcel.

1. BPS special certificate

To transfer or encumber a property, you must obtain the BPS special certificate provided for in the regulations.

The application is filed online and serves to attest that the taxpayer is in compliant standing to carry out the transaction.

2. Declaration about work performed

When applying for the certificate, you must report whether any work, renovations, or demolitions were carried out on the parcel during the last ten calendar years.

3. The document that applies to your property

There are three different situations:

Property with structures and no work during the declared period: you must complete a Sworn Statement of No Work, known as a DJNO. It states the date from which no work, renovations, or demolitions have been carried out.
Property with no structures: BPS requires a certificate from an architect or civil engineer. Even when there is no building at all, the owner's own statement is not enough.
Active projects: the DJNO does not apply and that field should be left blank.

The DJNO is a sworn statement. Responsibility for the truth of what is declared lies with whoever signs it.

4. When work was carried out

If there was registrable work within the period, it must be registered and the contributions must be current. If the work has already been finished, completion must also have been reported.

Depending on the case, or if BPS raises questions, a certificate of existence of work signed by an architect or civil engineer may be required.

If work surfaces that should have been registered and wasn't declared, it will have to be brought into compliance before the transaction can move forward.

What the architect or civil engineer certifies

The BPS technical certificate is not a certificate of conformity with Catastro, nor does it consist merely of comparing the property against earlier plans.

Under the official guidance, the professional must:

Carry out a technical survey of the parcel.
Record the date of the inspection.
Certify the existence or absence of work during the last ten calendar years.
Describe the work carried out, stating the month and year it started and finished.
Report the registered project number, where applicable.
State separately whether any work is currently underway.
Identify maintenance work covered by Law 19.291.
Attach, where necessary, plans, aerial photographs, or images of the work.

The certification must cover the parcel regardless of the date on which the current owner acquired the property or took possession.

There are also specific rules:

In condominium properties, the certification covers the unit and the common areas for exclusive use.
For merged or subdivided parcels, the predecessor parcels must be taken into account.
The document is filed with an electronic signature.
A technical professional who is an interested owner or a representative in the transaction cannot sign it.
The certification is valid for 180 calendar days from the date it is issued.

The ten-year limit

As of January 1, 2022, the review required for these transactions covers work carried out during the ten years preceding the contract.

The change was introduced by article 336 of Law 19.996, which added a paragraph to article 11 of Decree-Law 14.411. BPS implements it using the phrase "the last ten calendar years."

Two points are worth spelling out:

These are calendar years, not fiscal years.
It's a period that has to be measured against the date of the transaction, not against a fixed historical date.

So it's not correct to say that any work predating a particular year automatically falls outside the review. You have to look at the actual dates and count the applicable period.

Before 2022 the scope of the review was considerably broader. The change simplified many transactions involving properties with older structures.

Summary of what gets checked

Document or search	What it establishes
DJNO or certificate of existence of work	Whether there was any work, renovation, or demolition during the last ten calendar years
Registry records and BPS special certificate	Whether the work appears as registered or closed out and whether the taxpayer is in compliant standing to carry out the transaction
DGI certificate, where applicable	Whether the value-added VAT was paid or does not apply
Sworn Statement of Urban Characterization	Whether the existing structures were declared for appraisal and entry into the cadastral database

What happens if the work wasn't declared

If work covered by the regime surfaces that wasn't registered within the review period, it will have to be brought into compliance.

Which agencies get involved depends on the specifics of the case. It isn't always necessary to file with BPS, DGI, Catastro, and the Intendencia — the departmental government — all at once.

1. Bringing the work into compliance with BPS

The private-works regularization process allows construction activity that wasn't registered properly and on time to be registered after the fact.

It covers new construction, renovations, additions, and demolitions going back up to ten calendar years.

The documents that may be requested include:

Private works registration, form F1.
Descriptive statement of the construction characteristics, form F3.
Notarial summary of title, form F4.
Sworn statement from the technical professional as to the authenticity of the plans, form F6.
Plans, when the work altered the structure of the property.
Change of project status, form F9.

Based on the descriptive statement and the characteristics of what was built, BPS determines the number of workdays and assesses the corresponding contributions.

2. DGI and value-added VAT

Value-added VAT may apply to work carried out under the owner-managed arrangement, when the owner is subject to the AUC and the project doesn't fall under the contracting system.

There are two forms that shouldn't be confused:

Form 1301: this is the tax return, filed in the month following the month the work is completed.
Form 5201: this is the certificate application. It is filed after submitting the return, paying the tax, and closing out the project with BPS.

The DGI certificate may be required when refurbishment or recycling work was carried out on the property under the owner-managed arrangement and registered with BPS on or after July 1, 2007. In deeds of transfer or encumbrance it certifies that the value-added VAT was paid or does not apply, and it is valid for 180 days.

Promises of sale, assignments of such promises, and other preliminary contracts are exempt. Work started and registered with BPS before July 1, 2007 is likewise not taxed.

3. Catastro and the DJCU

The Sworn Statement of Urban Characterization, known as a DJCU, reports the structures existing on the parcel so they can be appraised and entered into the cadastral database.

It isn't simply a matter of filing plans. Its purpose is to update the characteristics and the actual value of the structures.

A DJCU may be needed to record improvements, new construction, or after-the-fact registrations with the Dirección Nacional de Catastro.

It must be filed by an architect or surveying engineer registered with the DNC, and the owner must sign it as well. The filing is done online and carries two professional stamp duties.

4. The Intendencia

Depending on the department and the type of work, you may also need to obtain a building permit or go through a departmental after-the-fact approval.

Each Intendencia has its own requirements, costs, fines, and deadlines.

The ten-year limit BPS uses does not automatically resolve your standing with Catastro or the Intendencia. These are separate procedures.

What it costs and how long it takes to come into compliance

There is no official fee schedule or timeline that applies to every case.

Cost and duration depend on factors such as:

The size and characteristics of what was built.
How old the work is.
The arrangement used.
The documentation available.
The number of workdays BPS determines.
Professional fees.
The filings the Intendencia requires.

On a substantial addition, the contributions assessed can add up to a significant figure. The timeline can also stretch if records have to be reconstructed, plans drawn up, or departmental standing sorted out.

Before committing to a closing date in the deposit agreement, it's worth asking the architect and notary who will be involved for a case-specific estimate, and leaving a reasonable cushion.

Common situations when buying or carrying out work

You bought an apartment and want to renovate the kitchen

Before accepting the quote, determine whether the work can fall under the small maintenance work regime.

The fact that no floor area is being added is not enough. The wage cap, maximum number of workers, independence from a larger project, and closure of the original construction must also be respected.

If you hire a registered company, request an invoice that identifies the property and details the work. If you hire the workers directly, you must register as a service user and assume the corresponding declarations and contributions.

You want to add a bedroom or a barbecue area

An extension adds floor area and therefore does not fall under the small maintenance work regime.

Before starting, define the departmental permit, register the project with BPS under the appropriate arrangement, and agree who will declare the workers.

On completion, the end of work must be reported and, where applicable, the position with Catastro and the Intendencia must be updated. Doing this at the time is much simpler than bringing the extension into compliance several years later.

A house with an added bedroom

The owner built a bedroom eight years ago, hiring bricklayers directly and without registering the work.

Because the addition falls within the review period, it will have to be brought into compliance with BPS, the workdays determined, the contributions assessed, and an analysis made of whether value-added VAT is due.

It may also be necessary to update Catastro and obtain after-the-fact approval of the structure from the Intendencia.

The transaction may be delayed while the work is registered and BPS determines its status. Once the amounts owed are quantified, in some cases their payment can be arranged simultaneously with obtaining the certificate and signing the deed; the notary determines whether that option is viable. If the timelines or costs run too high, the deal can fall through.

A house with additions from thirty years ago

If work falls outside the ten years preceding the contract, it also falls outside the time-based review tied to the certificate and outside the standard regularization process BPS handles for work going back up to ten calendar years.

That doesn't mean the property is fully in order.

There may still be discrepancies with Catastro, permits pending with the Intendencia, or even amounts owed that were assessed at some earlier point.

The situation is usually simpler than that of recent undeclared work, but it still has to be checked.

Work done off the books

When workers were never declared, no contributions were paid, and the project was never registered, BPS can estimate the labor from the descriptive statement of what was built.

Contributions are assessed on that basis, along with any applicable fines and surcharges.

This can be one of the most expensive and drawn-out scenarios, and it can sink a deal.

Exemptions and special arrangements

Not all work is taxed the same way. There are simplified regimes and exemption arrangements with specific requirements.

Small maintenance work

Law 19.291 sets up a special regime for certain upkeep, maintenance, and improvement work.

The main conditions are:

The work must not form part of the integrated process of a larger project or alter the graphic plans and records.
The original construction must have the corresponding completion closure.
Total wage cost cannot exceed the equivalent of 30 workdays at the semi-skilled bricklayer rate over twelve consecutive months for the same property.
As of April 2026, the workday rate used is $2,650.67 and the cap is $79,520.
No more than two workers may participate at the same time, including the owner or contractor when personally involved.

The limit does not mean thirty days of work: it is an amount of money. What is compared against the current cap is the total wage cost accumulated over twelve consecutive months on the same property, regardless of how many days or people are involved.

The work can be carried out in one of two ways.

Hiring a company

The company must be registered with BPS and DGI and must issue an invoice itemizing:

The address where the work was performed.
The period during which it was carried out.
Labor and materials costs.
The work performed.

In this case, the project is not registered individually under the construction regime. The company is responsible for its own obligations under the Industry and Commerce regime.

The invoice serves as the owner's supporting documentation and must be kept for ten years.

Hiring the workers directly

If the owner hires the workers directly, they must register with BPS as a service user.

In that case, they take on responsibility for the declarations, the contributions, and BSE workers' compensation insurance coverage.

If not all the conditions of the regime are met, or there is no supporting documentation, the activity will have to be declared under the general construction regime of Law 14.411.

So it's not correct to say that painting, installing tile, or making a repair "never counts." That work may fall under a simplified regime, but it still comes with requirements.

Self-build

Self-build applies when the work is carried out by the owner and the household that will live in the home.

Immediate relatives up to the second degree of consanguinity or affinity may also take part — parents, grandparents, children, siblings, brothers- and sisters-in-law, parents-in-law, daughters- and sons-in-law, or grandchildren — provided they receive no pay or financial compensation.

Self-build can be total or partial.

This arrangement carries no household income limits, no restrictions by type of housing, and no requirement that it be the owner's only property.

BPS assesses whether it is plausible that the declared tasks could be performed by the people taking part. To demonstrate their competence, they can submit degrees, training records, or pay stubs from comparable work.

Self-build has no income ceiling. Volunteer labor does, but its limits are expressed as 90 or 120 UR depending on the number of bedrooms. The supposed seven-minimum-wage limit is not part of these rules.

Volunteer labor

Volunteer labor is when people outside the household help with the construction free of charge.

Here there are conditions tied to the home and to income:

It must be the owner's only property anywhere in the country.
It must be intended as the owner's permanent residence.
Household income cannot exceed 90 UR for two-bedroom homes or 120 UR for homes with three or more bedrooms.
The home must meet the floor areas set for social-interest housing categories.
The helpers must be engaged in paid personal work as their usual livelihood, or be retired.
People who are unemployed or working informally cannot take part as helpers.

Owners of construction companies are not accepted as volunteer helpers, unless there is a family relationship up to the second degree. In that case, the project is registered as self-build.

Mutual-aid labor

Mutual-aid labor is an arrangement specific to housing cooperatives.

Cooperative members and members of their households do not pay the AUC on the work they contribute under this arrangement. Paid labor does have to be declared, with contributions made on the actual workdays.

Applying for an exemption

For self-build, volunteer labor, and mutual-aid arrangements, the project must be registered before work begins, and the exemption must then be applied for.

BPS has 30 business days to decide. If that period passes without a decision, the taxpayer is cleared to carry out the work, without prejudice to later review.

If it is found during the work that paid workers took part and weren't declared, BPS can assess the obligations and apply the corresponding penalties.

Work outside the review period

Work carried out more than ten years before the contract falls outside the time-based review tied to the certificate and outside the standard regularization process BPS handles for work going back up to ten calendar years.

This does not automatically resolve your standing with Catastro or the Intendencia, nor does it necessarily extinguish amounts that were already assessed.

How to protect yourself as a buyer

1. Ask in writing

Ask the seller whether any work, renovations, or demolitions were carried out during the last ten years.

Ask whether they are registered and closed out with BPS and, where applicable, request the project number.

An "it's all fine" is no substitute for documentation.

2. Talk to your notary before putting down a deposit

The notary should review the records and determine which certificates apply.

Finding a problem before signing a deposit agreement is far easier than trying to resolve it afterward.

3. Ask for the invoice on small jobs

If the seller says the remodel was done under Law 19.291, ask for the invoice itemizing the work, the address, and the period during which it was carried out.

Without that documentation it may be impossible to show that the work qualified for the simplified regime.

4. Settle who pays to bring things into compliance

The law places the contributions on the owner or rights holder and makes the debt attach to the property.

Even so, seller and buyer can agree on who will bear the cost of coming into compliance as part of the deal.

That agreement should be spelled out in writing.

5. Make your offer conditional

The deposit agreement can include a condition along these lines:

"Subject to satisfactory verification of the property's standing with BPS and of its construction compliance."

The clause should set a deadline and spell out what happens if a significant compliance failure comes to light.

6. Check Catastro and the Intendencia too

The fact that a project falls outside the review period used for the BPS certificate doesn't mean the property is in order with Catastro or the Intendencia.

These are separate checks and have to be looked at individually.

Frequently asked questions

What do I need to do before starting construction work?

First define the scope of the work, confirm whether it changes the plans or requires a permit, and establish who will perform it.

That information determines whether the work falls under small maintenance, minor works, the general regime by contract or owner management, or an arrangement such as self-build.

When registration is required, it can be completed from ten days before the start and up to 48 business hours after work begins. If a company is involved, record in writing who registers the project, declares the workers, pays the contributions, and reports completion.

What is the Unified Construction Contribution?

It's the levy paid to BPS for construction industry workers who work directly on site.

It covers construction, repair, renovation, or demolition work, and bundles pension, health, accident insurance, year-end bonus, leave, and vacation pay contributions into a single monthly payment.

How much is the AUC in 2026?

The rate currently in force is 71.8% of taxable pay.

For architectural work, an additional 4% goes to the Fund for University Professionals, bringing the total to 75.8%. For engineering work, an additional 2% applies.

Who pays the contribution: the owner or the company?

Article 5 of Decree-Law 14.411 places the contributions on the owner of the property or the holder of property rights or possessory rights over it.

The contracting arrangement determines who manages and declares the workers. On a small-scale project, for instance, the contractor acts as withholding agent.

On top of that, article 9 establishes that the debt attaches to the property. That's why, when buying, you have to verify how the work was registered and whether it has been closed out with nothing owed.

What happens if contributions weren't paid on a project?

The obligation falls on the owner or corresponding rights holder, and the debt can attach to the property.

Without the certificate the regulations require, the property cannot be transferred or encumbered. Coming into compliance after the fact may mean registering the work, determining the workdays, and paying in the corresponding contributions, fines, and surcharges.

Do you always need an architect's certificate?

No.

If the property has structures and there was no work during the declared period, the Sworn Statement of No Work may be what applies.

If the property has no structures, BPS requires a certificate from an architect or civil engineer.

If there is active work, the DJNO does not apply.

The technical certificate is valid for 180 calendar days and is filed with an electronic signature.

When did the ten-year limit take effect?

January 1, 2022, under article 336 of Law 19.996, which amended article 11 of Decree-Law 14.411.

The review covers work carried out during the ten years preceding the contract. BPS implements this as the last ten calendar years.

Does a kitchen remodel count as construction work?

It can.

If it isn't part of the integrated process of a larger project, doesn't alter the plans, the original construction has its completion closure, the labor cost doesn't exceed 30 workdays at the semi-skilled bricklayer rate over twelve months on the same property, and no more than two workers are on the job at the same time, it may fall under the simplified regime of Law 19.291.

If not all the conditions are met, or the supporting documentation isn't kept, the work has to be declared under the general construction regime.

Official sources

Banco de Previsión Social

Dirección General Impositiva

Dirección Nacional de Catastro

Sworn Statement of Urban Characterization

Legislation

This guide is informational and is not a substitute for advice from a notary, architect, or accountant. Rates and peso amounts are updated periodically, so it's always worth checking them against the official sources before making a decision.

Thinking about buying new construction or investing? See how to invest with data or request a valuation of your property.