Nicaragua

Compliance/Financial Considerations

If you intend to do any of the following in Nicaragua, please contact Risk Services at risk@berkeley.edu or 642-5141:

  • Hire a local to work for you as an employee
  • Purchase or lease office or research space
  • Purchase or lease an automobile
  • Establish a long-term (over 90 days) or ongoing project
  • Conduct a clinical trial

U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS

Foreign activities may trigger many U.S. laws, including:

  • Import Controls
  • Export Controls
  • Tax Reporting
  • Foreign Bank Account Reporting
  • Country Embargoes and Targeted Sanctions
  • Foreign Corrupt Practices Act
  • Anti-Boycott Laws

Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730, also known as ISF 10+2.

Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here.  Go here for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Nicaragua, consult the campus Research Administration Compliance Office at 642-0120.

Tax Reporting. The University and its employees may be taxed in foreign countries. The United States does not have a tax treaty with Nicaragua. For more information about double taxation issues, contact the Controller’s Office at:

Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114). Those needing to complete the form should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance.

Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control (OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations webpage contains additional information on this topic.   

The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act.   If you need further clarification, contact the UC Berkeley Office of Legal Affairs at 642-7122. Transparency International’s 2018 survey of perceived public sector corruption rated Nicaragua at 25 out of 100 (152nd out of 180 countries reviewed, i.e. very corrupt).

Anti-Boycott Laws.  The U.S. Department of Commerce is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.

For other compliance-related issues, refer to UC’s International Compliance webpage.  

ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY

Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group by the Chancellor or the Chancellor’s designee. 

Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts.  Foreign affiliates or operations must submit to the Real Estate Services Office property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations.

Articles

The US State Department's page on NICARAGUA may be found HERE.

Personal Safety

MOST COMMERCIAL AIRLINES SERVING NICARAGUA HAVE AGAIN DELAYED THE RESUMPTION OF FLIGHT OPERATIONS IN THE COUNTRY THROUGH AT LEAST EARLY DECEMBER, WITH SOME ONLY INTENDING TO RESUME OPERATIONS AS LATE AS JANUARY 2021. AS OF EARLY NOVEMBER, ONLY AVIANCA AIRLINES (AV) AND SOME CHARTER SERVICES ARE OFFERING FLIGHTS TO AND FROM NICARAGUA.  AUGUSTO C. SANDINO INTERNATONAL AIRPORT (MGA) IN MANAGUA REMAINS OPEN, AND DOMESTIC FLIGHTS AND CARGO TRANSPORTATION CONTINUE TO OPERATE AMID THE CORONAVIRUS DISEASE (COVID-19) PANDEMIC.  ALL TRAVELERS ARRIVING IN NICARAGUA ARE REQUIRED TO PRESENT A NEGATIVE COVID-19 TEST TAKEN NO MORE THAN 72 HOURS BEFORE ARRIVAL. NONRESIDENT FOREIGN NATIONALS SHOWING SYMPTOMS OF THE DISEASE WILL NOT BE PERMITTED TO ENTER, WHILE CITIZENS AND LEGAL RESIDENTS WHO SHOW SYMPTOMS ARE REQUIRED TO SELF QUARANTINE.

RECONSIDER TRAVEL TO NICARAGUA DUE TO CIVIL UNREST, CRIME, LIMITED HEALTHCARE AVAILABILITY AND ARBITRARY ENFORCEMENT OF LAWS.

Note: this page contains basic risk information. For more details, please contact the Risk Services Office at risk@berkeley.edu.

If you are traveling to Nicaragua on University-related business, please sign up for the University’s travel insurance program by going here. For more information on the travel insurance program, please go here.

Because everyone’s health is unique, we suggest seeking the advice of a medical professional before traveling internationally. Members of the campus community interested in protecting their health while abroad may schedule an appointment with the University Health Services International Travel Clinic

The quality of health care in Nicaragua is considered below western standards. Medical facilities are often lacking in medications, supplies, and equipment. Care is better in Managua. In emergencies, seek treatment at the Hospital Metropolitana Vivian Pellas if possible. Dial 118 for an ambulance, although response time and quality may be poor. The US Embassy in Managua maintains this website of health care resources, but makes no guarantee about the quality of service.

Travelers should assume the drinking water in Nicaragua is contaminated with sewage, industrial waste, or agricultural products. (See link to Blum Center article below.) To reduce the risk of gastrointestinal discomfort or illness, drink only bottled, boiled, or purified water. Travelers should use well-recognized brands of bottled water whenever possible.

Street vendors and other unregulated food distributors often have poor hygiene standards and should be avoided. Travelers should also avoid raw or undercooked meat dishes and unpasteurized dairy products, which frequently harbor bacterial and parasitic pathogens.

Travelers risk contracting a number of serious illnesses in Nicaragua, including:

  • Malaria, transmitted by mosquito bites, year-round but primarily from May to December.
  • Dengue fever, yet another mosquito-borne disease, countrywide and year-round, but particularly from March to October.
  • Leishmaniasis, countrywide and year-round, but particularly from May to July. High-risk areas include the northern regions of Jinotega and Matagalpa and along the San Juan River.
  • Chagas disease, transmitted through reduviid bug bites, particularly in rural areas below 1,500 meters in elevation. Chagas is especially prevalent in the Department of Madriz; in Somoto, the capital, ten percent of blood donors are infected.

Nicaragua is safer than most countries in Central America. Petty crime is the main threat to travelers, with pickpocketing and theft common in markets and other crowded areas. Auto burglaries are also common. Scam artists often try to con travelers by offering taxi rides or tours; accept such services only when obtained through trusted sources. Armed robbery is a risk in Managua. Avoid any display of wealth, including electronics and jewelry. Sexual assaults are a concern at tourist beaches. If traveling to the autonomous regions in the northeast, go with a group under the supervision of a trusted local and avoid anything that might suggest drug trafficking activity. Overland travel is risky, especially at night, due to poor roads and the threat of highway robbery.

The Nicaraguan police are poorly trained, slow to respond, and unlikely to solve crimes. They are also hard to find outside Managua. Few officers speak English. Corruption is endemic, and travelers may be charged with real or invented infractions that can be resolved only through bribes.

Earthquakes occur every few years in Nicaragua. To optimize your preparation for an earthquake, review this guidance from the State of California

Legal/Political

Criminal Penalties: You are subject to local laws. If you violate local laws, even unknowingly, you may be expelled, arrested, or imprisoned. Furthermore, some crimes are also prosecutable in the United States, regardless of local law. 

  • Penalties for possessing, using, or trafficking in illegal drugs in Nicaragua are severe, even for possession of small amounts.
  • Marijuana is illegal in Nicaragua, even with a prescription.

There are severe penalties, including imprisonment, for domestic violence, psychological abuse, and non-payment of child support.

Arrest Notification: Nicaraguan authorities frequently do not notify the Embassy when a U.S. citizen has been detained, especially if the arrestee has dual nationality. The Government of Nicaragua does not consider U.S. citizens born in Puerto Rico to be U.S. citizens. If you are detained, ask police or prison officials and friends or family to notify the U.S. Embassy immediately. After the Embassy learns of an arrest, it may be several days or weeks before the Government of Nicaragua permits a consular official to visit.

  • The legal system operates arbitrarily, which can result in prolonged detentions of U.S. citizens without charges or due process.
  • Police and prison authorities have ignored or significantly delayed implementing judicial orders to release, deport, expel, or transfer prisoners.

Customs Regulations: U.S. citizens should contract well in advance of their visit with a recognized local customs broker for assistance; the Embassy is unable to assist with the customs or import process.

  • Nicaraguan customs officials routinely delay or block import of goods, including items intended for donation.
  • Drones and similar devices or toys are not permitted and will be confiscated by Customs authorities.
  • Approval from the Ministry of Health’s Pharmacy Department is required to import medicine, even for donation.
  • If you are planning to bring vehicles or household goods, consult Nicaraguan customs officials prior to shipment.
  • When entering with your vehicle, you must have the original registration and title.
  • Before excavating archaeological materials or buying historical artifacts, you must consult with the National Patrimony Directorate of the Nicaraguan Institute of Culture. Otherwise, severe criminal penalties may apply.

LGBTI Travelers: There are no legal restrictions on same-sex sexual relations or the organization of LGBTI events in Nicaragua. While violence against LGBTI travelers is not common, widespread societal discrimination exists.