Chile is grappling with a regulatory system so burdensome it threatens future economic growth. Known locally as “permisología”, the country’s complex and time-consuming permitting process (especially for environmental, property and heritage approvals) is delaying investment and inflicting enormous costs on the country. These inefficiencies may be cutting GDP growth by 2–3 percent annually, undermining economic recovery, job creation and private sector confidence. 

This bureaucratic hurdle has become particularly cumbersome in sectors like mining and construction, where projects can take years to navigate regulatory approvals. “The case of mining is particularly alarming,” noted a transactional company consultant. “With up to 380 authorisations and 37 services involved, some projects are having to go through literally thousands of procedures and respond to hundreds of observations.”  

Such complexity directly undermines Chile’s global competitiveness. While the World Bank estimates it takes 195 days to secure a construction permit in Chile, Mexico does the same in 76 days, Colombia in 132 and Peru in 137. The implications are clear: foreign investors and multinational corporations are losing confidence in Chile’s ability to deliver infrastructure efficiently. 

This is no longer just a concern for private capital. As the consultant stated, “Considering that additional environmental and heritage requirements have delayed the construction of new metro lines, public hospitals, highways and all kinds of private construction,” it is no surprise that some economists believe Chile is losing billions in productivity.  

“Additional environmental and heritage requirements have delayed the construction of new metro lines, public hospitals, highways and all kinds of private construction.”

Consultant for transactional companies, Chile 

An industry expert highlighted that “in recent years there has been a worrying trend that the most complex approvals are not environmental but heritage in nature.” The National Monuments Council, which oversees such approvals, is responsible for delaying “more than 60 percent of the projects that suffer some kind of hindrance to their execution.” In some cases, delays verge on the absurd. “Particularly striking have been the suspensions of large-scale projects due to findings of Coca-Cola bottle caps from the 1970s, with the Council requesting further studies and excavations that have proliferated across the country,” expanded the consultant. 

Faced with such unpredictable and irrational obstacles, companies are not adapting but instead retreating. “In general, companies that are able to do so have postponed the development of new projects,” the expert continued, “Unfortunately, larger companies that are able to develop their projects in other countries also seem to be favouring investment abroad.” Some have rescheduled environmental procedures for one or two years, effectively “waiting for a change of government,” with the current administration due to leave office in March 2026. 

Construction and real estate firms have similarly scaled back. The consultant informed, “They have focused mainly on the development of subsidised social housing projects,” given that “the sale of new properties is at historic lows.” This pivot is more of a survival strategy than a long-term vision and it comes at the worst possible time, as Chile’s housing shortage continues to worsen due to limited new supply. 

The current political context in Chile has further complicated matters. The specialist consultant observed, “Some attribute the increasing difficulty in project approvals to the political stance of the current administration,” highlighting President Gabriel Boric’s electoral alliance with “the Communist Party (“PC”), environmental organisations and far-left groups critical of the capitalist model.” 

“Some attribute the increasing difficulty in project approvals to the political stance of the current administration.”

Consultant for transactional companies, Chile 

In response to growing criticism, the government presented a legislative reform effort in October 2024 to streamline the permitting process. The bill seeks to reduce the time that permits remain outside the Environmental Evaluation System (Sistema de Evaluación Ambiental, “SEA”) by 30 percent for large-scale projects and up to 70 percent for smaller ones. It also proposes to amend more than 40 sector-specific laws. If fully implemented, the reform could lower average permit times from 195 days to roughly 136, bringing Chile more in line with regional competitors such as Colombia and Peru. 

Still, the success of this reform is far from guaranteed. The consultant highlighted, “In the case of the current government, which has only 11 months left and is already suffering from the ‘lame duck’ syndrome (or legislative irrelevance), many observers believe that until the current environment minister is replaced, investor confidence will not be regained.” 

The permisología crisis has become a frustrating obstacle to Chile’s economic growth, investor confidence and infrastructure development. Without gutsy action, Chile risks being left behind in a region hungry for growth.