Canillo Investment Property ListingsResort village with slopeschurches, and views

Real Estate in Canillo, Andorra

Why Invest in Property in Canillo

Canillo is a sought-after destination for real estate investors looking to blend high-altitude mountain living with access to world-class ski infrastructure. As the largest parish in Andorra by area and a gateway to the Grandvalira ski domain, Canillo offers scenic alpine beauty, low tax burdens, and excellent development potential. It is ideal for both lifestyle buyers and income-focused investors seeking ski-season rental yields or long-term capital appreciation. With Andorra’s favorable tax system — including no capital gains on foreign income and low corporate tax — Canillo stands out as a smart choice in the European mountain property market.

Types of Properties Available

Canillo presents a wide range of real estate options that appeal to second-home seekers, passive residency applicants, and tourism-focused investors. These include:

• Ski apartments — One- to three-bedroom units in modern buildings near gondolas, ideal for rental income and seasonal use.
• Rustic-style homes — Stone-and-wood mountain houses offering traditional charm with updated interiors.
• New developments — Contemporary, energy-efficient residences with mountain views and private garages.
• Chalets and detached homes — Especially in the villages of Prats, Meritxell, and El Forn, offering larger living space and privacy.
• Tourist residences — Apartments within hotel-complex structures, often offering guaranteed yields and managed services.

Additionally, small commercial premises and undeveloped land plots are available for business or custom residential construction.

Ownership Rules and Legal Considerations

Foreign buyers are welcome in Andorra, including in Canillo, after obtaining government authorization. This process takes approximately 30–45 days and includes a background check. Once approved, foreigners can purchase property with full freehold rights. Key legal notes include:

• No annual property taxes — only minimal municipal maintenance fees.
• Capital gains tax applies on resale within 12 years (starting at 15%, reducing annually).
• Transaction fees total approximately 2% (notary and land registry).
• Investments of €400,000 or more are eligible for Andorra’s passive residency program, with additional deposit and stay requirements.

The legal process is transparent and involves notaries, real estate agencies, and legal advisors experienced in international transactions.

Price Ranges and Market Trends

Canillo is considered mid- to high-tier in terms of real estate pricing within Andorra, thanks to its ski access and tourism popularity. Price ranges (as of 2025) are:

• Ski apartments: €3,500–€6,000 per m², depending on distance to gondola and view
• Chalets: €800,000–€2.5 million, depending on size, village location, and plot
• Luxury penthouses: €900,000–€1.8 million for spacious, new units near ski lifts
• Buildable land: €250–€600 per m², depending on access and zoning

Rental yields are strong during ski season — 4%–6% for short-term lettings. Many owners combine personal use with winter rentals to optimize return. Demand continues to grow, particularly from French, Spanish, and Belgian buyers, as well as remote workers from the EU seeking tax efficiency and quality of life.

Popular Villages and Lifestyle Considerations

The parish of Canillo encompasses several charming mountain villages, each with its own character and appeal:

• Canillo town — The central hub with supermarkets, schools, restaurants, and the main gondola to Grandvalira. Great for year-round living.
• El Forn — Elevated zone with spectacular views and new developments. Offers tranquility and luxury.
• Prats — A peaceful hamlet near hiking trails and nature, ideal for detached homes and chalets.
• Meritxell — Known for its basilica and serene atmosphere. Popular for rustic homes and expat families.
• Soldeu and El Tarter (technically shared with neighboring parishes) — Highly active tourist zones, favored for rental investments and ski properties.

All villages offer clean air, mountain activities, and good road connectivity to Andorra la Vella (15–25 minutes by car). International schools and healthcare are also within reach, making Canillo suitable for both short stays and full-time residency.

Investment Scenarios and Buyer Profiles

Common real estate investment scenarios in Canillo include:

1. Short-term holiday rentals — Buying 1–2-bedroom apartments near ski lifts to lease on platforms like Airbnb and Booking.
2. Mixed-use purchases — Using the property part of the year, renting it during high season for passive income.
3. Luxury residency — Buying chalets for full-time relocation under Andorra’s favorable tax regime.
4. Land development — Building boutique residential projects in El Forn or Soldeu.

Example: An 80 m² apartment purchased for €480,000 near Canillo gondola may earn €18,000–€24,000 in seasonal rental income. Alternatively, a 200 m² chalet in Prats bought for €1.2 million may appreciate 15% over five years due to growing market scarcity and foreign demand.

Conclusion: Who Chooses Canillo and Why

Canillo appeals to a wide range of buyers — from lifestyle-driven expats to investors seeking yield and long-term appreciation. Its combination of authentic mountain villages, premium ski access, and tax advantages makes it one of the most balanced and strategic areas to invest in Andorra. Whether you’re looking for a high-altitude holiday home, a base for passive residency, or a rental-focused ski apartment, Canillo delivers. With limited land for new development and steady tourism inflow, the real estate market here offers both security and upside — making Canillo a smart choice for property buyers in the Pyrenees.