Building or Renovating? - From November 1, first report the source of funds

From November 1, when commencing construction works, natural persons will be required to specify the source of financing in the Construction Information System (CIS), according to the amendments to the building regulations adopted by the government, which will come into effect on November 1.

It is stipulated that if the initiator of construction is a natural person, then upon meeting the conditions for the commencement of construction works, they will need to enter information about the intended source of financing for these works into the Construction Information System (CIS).

These changes have been adopted in accordance with the Plan to Limit the Shadow Economy for 2024-2027.

According to the current building regulations, the most appropriate time to indicate the source of financing is just before the start of construction works, as stated in the annotation to the regulations. This will ensure that the information provided will be as accurate as possible and reflect objective reality rather than the initiator's assumptions about possible future events.

The proposal to require natural persons to specify the source of financing in the CIS was included in the Plan to Limit the Shadow Economy for 2024-2027 at the initiative of the State Revenue Service (SRS) as a preventive measure to prompt individuals to consider whether the funds for construction are legal, the Ministry of Economics notes in the annotation to the regulations.

The State Construction Control Bureau (SCCB), which operates the CIS, informed the LETA agency that a CIS user must log into the portal and select the section "Būvniecība", then the subsection "Būvniecības lietas" to specify the source of financing for construction works. After that, they need to fill out the relevant sections of the construction idea application by selecting "Paziņojums par būvniecību", "Paskaidrojuma raksts" or "Būvniecības iesniegums". According to the selected section, all required information must be provided.

After these actions, in the section "Būvniecības līgumi", the type of contract must be indicated by choosing one of the offered options: "Būvdarbu līgums", "Būvuzraudzības līgums", "Autoruzraudzības līgums" or "Savām vajadzībām (saviem spēkiem)". Then, the contract amount and source of financing must be indicated by selecting one of the offered options: "Algota darba ienākumi", "Ienākumi no saimnieciskās darbības", "Aizdevums" or "Cits ienākumu veids".

When specifying the source of financing, it is permissible to combine types, for example, to indicate two sources simultaneously - "Algota darba ienākumi" and "Ienākumi no saimnieciskās darbības", explains the SCCB.

The information provided in the CIS will not be publicly accessible and will only be available to government authorities.