Costa Rica

Compliance/Financial Considerations

If you intend to do any of the following in Costa Rica, 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 Costa Rica, consult the campus Research Administration Compliance Office at 642-0120.

Tax Reporting. The University and its employees may be taxed in foreign countries. The tax implications for operating in Belgium may be found at the Internal Revenue Service’s United States-Costa Rica Income Tax Convention. For further clarification, 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 Costa Rica at 56 out of 100 (48th out of 180 countries reviewed, i.e.  relatively clean).

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 COSTA RICA may be found HERE.

Personal Safety

ON OCTOBER 26, AUTHORITIES IN COSTA RICA HAVE EASED INTERNATIONAL TRAVEL RESTRICTIONS AS PART OF THE COUNTRY'S RESPONSE TO THE CORONAVIRUS DISEASE (COVID-19) PANDEMIC. FOREIGN TRAVELERS WILL NO LONGER BE REQUIRED TO PROVIDE A NEGATIVE COVID-19 PCR TEST PRIOR TO ENTERING THE COUNTRY.  ALL TRAVELERS ARE STILL REQUIRED TO COMPLETE THE REQUIRED HEALTH AFFIDAVIT AND HAVE SUFFICIENT INSURANCE TO COVER LODGING AND HEALTH EXPENSES. THE COSTA RICAN GOVERNMENT CONTINUES TO USE A MULTI-TIERED, COLOR-CODED ALERT SYSTEM BASED ON LOCAL DISEASE ACTIVITY TO TRACK COVID-19 RISK AND MANAGE RESTRICTIONS IN CANTONS AND DISTRICTS NATIONWIDE. AS OF OCTOBER 26, ALL CANTONS IN COSTA RICA FALL UNDER EITHER YELLOW (MODERATE RISK) OR ORANGE CLASSIFICATION (HIGH RISK). ALL PERSON MUST WEAR PROTECTIVE FACEMASKS THAT COVER THE NOSE AND MOUTH WHILE IN INDOOR PUBLIC AREAS AND WHILE USING PUBLIC TRANSPORTATION.

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 Costa Rica 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 San Jose is considered adequate. Elsewhere in Costa Rica, the quality of health care may be substandard. Private medical services are generally superior to public medical services. In a health emergency, dial 911 for a public ambulance or 128 for the Red Cross. The police can also be reached by dialing 911.

Air pollution can be a problem in urban areas, especially in San Jose. If you have a chronic respiratory condition such as asthma, please consult a medical professional prior to your trip and carry appropriate medications.

The drinking water in Costa Rica’s urban areas is treated, but system defects, power outages, and supply shortages may impair quality. Travelers should assume the drinking water in rural areas is contaminated with pathogens or chemicals. 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. Visitors 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 Costa Rica, including:

  • Dengue fever, transmitted by mosquito bites. Cities (including San Jose), coastal areas, and the Central Valley are at high risk from May through October.
  • Chagas disease, spread via reduviid bugs, is common in rural areas below 4,000 feet, especially in the provinces of Alajuela, Guanacaste, Heredia, and San Jose.
  • Leishmaniasis, a year-round and countrywide risk below 2,600 feet. The peak risk period is May through July, and the highest risk area is near the Panamian border.
  • Myiasis, transmitted through botfly bites, when in the rain forest. Boil-like lesions rise from the bite.

The crime rate in Costa Rica is one of the lowest in Latin America. Nonetheless, travelers should be wary of petty theft and other minor crimes in tourist areas, on beaches, and in transportation hubs, especially near the Coca-Cola station in San Jose. Hotel rooms and vehicles are at risk for theft, particularly in tourist areas such as Jaco. Travelers should take extra steps to protect their passports, which are prized by thieves.

Sexual assault is becoming more of a problem in tourist areas and beaches, and women should avoid traveling alone. Carjacking has become increasingly common in San Jose and the Central Valley; travelers are advised to park their vehicles in guarded lots.

Legal/Political

Criminal Penalties:You are subject to local laws. If you violate local laws, even unknowingly, you may be expelled, arrested, detained, or imprisoned. If you break local laws in Costa Rica, your U.S. passport will not help you avoid arrest or prosecution.

In the event you are stopped by police, comply with all instructions. The Embassy is aware of isolated reports of uniformed officers or impostors demanding a bribe. Should you be confronted for a bribe, do not argue. Note the name of the officer and any identifying numbers on the uniform or vehicle, and report the incident via calling “911.”

Alcohol/Drugs: Driving under the influence of alcohol or drugs could land you immediately in jail. Penalties for possession, use, or trafficking illegal drugs are severe, including long jail sentences and heavy fines.

Arrest Notification: If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy immediately. 

The law permits pre-trial detention of persons accused of serious crimes. Due to overcrowding in local prisons, courts may instead utilize an “exit impediment.” Individuals subject to these measures cannot depart Costa Rica, must be able to support themselves, and must check in with judicial authorities on a regular basis. Defendants have the right to a public defender and an official translator for important hearings.

Judicial Process: Due to differences in legal systems and case backlogs, local criminal and civil judicial processes can move slower in comparison to their U.S. equivalents. Civil suits on average take over five years to resolve. Some U.S. firms and citizens have satisfactorily resolved their cases through the courts, while others have seen proceedings drawn out over a decade without a final ruling.

LGBTI Travelers: There are no legal restrictions on same-sex sexual relations or the organization of LGBTI events in Costa Rica. The LGBTI community is protected by anti-discrimination laws.