Real estate in Escaldes-EngordanyGlass buildings, hot springsand quiet life

Real Estate in Escaldes-Engordany, Andorra: Wellness Living and Urban Elegance

Why Invest in Escaldes-Engordany

Escaldes-Engordany, one of Andorra’s most refined and cosmopolitan parishes, combines spa traditions, cultural heritage, and modern development. With its central location adjoining Andorra la Vella and its status as home to the famous Caldea spa complex, the area attracts investors seeking luxury apartments, wellness-oriented living, and prime rental income from health tourism. Escaldes-Engordany benefits from Andorra’s zero property tax, favorable tax regime for residents, and high property demand from international buyers and retirees.

Types of Properties and Market Highlights

The real estate market here is defined by high-end new developments, boutique apartment buildings, penthouses with panoramic mountain views, and stylish refurbished properties near shopping districts. Residential real estate dominates the market, with a growing number of mixed-use complexes that integrate living spaces, wellness facilities, and commercial units. The average price per square meter in Escaldes-Engordany is among the highest in Andorra, typically ranging from €4,000 to €7,000 depending on location and finishes, with luxury units surpassing €8,500/m².

Foreign Ownership and Legal Considerations

Foreigners are allowed to purchase real estate in Escaldes-Engordany with few restrictions. Buyers must obtain government approval, which is usually straightforward for residential use. Real estate transactions require a notarial act, registration with the Andorran Property Registry, and compliance with local documentation standards. Property purchases can support residency applications, particularly passive residence (requiring investment and stay but no employment). Legal support is strongly recommended to facilitate due diligence and smooth registration.

Rental Demand and Investment Potential

Thanks to its proximity to Andorra la Vella, spa infrastructure, and upscale lifestyle, Escaldes-Engordany generates strong rental interest from professionals, diplomats, wellness tourists, and seasonal residents. Short-term rentals are especially lucrative due to high tourist traffic around Caldea and the shopping avenues. Long-term rentals are popular among business owners and semi-residents. Gross yields range from 4% to 6% on residential units, with higher figures possible for well-managed furnished rentals.

Key Locations Within Escaldes-Engordany

Desirable zones include:

• Avinguda Carlemany: High-end shopping and lifestyle district with luxury flats and serviced residences.
• Engolasters: A peaceful, elevated area with panoramic views, ideal for villas and chalets.
• Escaldes Historic Center: Renovated properties in charming stone buildings near Romanesque architecture and local museums.

Each micro-location caters to a different buyer profile — from cosmopolitan investors to nature-oriented families seeking privacy and alpine ambiance.

Infrastructure and Lifestyle Benefits

Escaldes-Engordany is known for its excellent infrastructure, including international schools, private clinics, thermal centers, and boutique shops. The area is walkable and well-connected, with swift access to the French and Spanish borders. The Caldea spa center, Europe’s largest thermal complex, draws visitors year-round. Residents enjoy a calm lifestyle with immediate access to Andorra la Vella’s business and administrative services. Property owners benefit from low annual costs due to Andorra’s favorable fiscal regime.

Purchase Scenarios

• Apartment for long-term residence: €600,000–€850,000 for a 2-bedroom premium flat in Carlemany zone, suitable for families relocating for tax residency or quality of life.
• Short-term rental investment: €350,000–€500,000 for a stylish apartment near Caldea, generating yields from high-season tourist lets and wellness packages.
• Luxury penthouse: €1.2M–€2M for top-floor properties with spa features, terraces, and panoramic views — often used as second homes or elite retirement residences.
• Chalet with privacy: €900,000–€1.5M for detached houses in Engolasters, offering exclusivity and space within a short drive to city amenities.

Taxation and Costs

There is no property tax in Andorra. Capital gains tax may apply on resale (typically 5–15% depending on holding period). Buyers should also account for notary fees (0.1%–0.2%), property transfer tax (4%), and registration expenses. Rental income is taxed at favorable rates, especially for residents. Many foreign investors pursue passive residency through property purchases exceeding €400,000.

Real Estate Services and Support

VelesClub Int. offers full-cycle support for real estate transactions in Escaldes-Engordany — from property selection and legal due diligence to tax consultation, residence permit assistance, and rental management. Our local partners include notaries, property developers, and financial advisors with expertise in Andorra’s property framework. Whether you're buying for personal use, residency, or investment, our ecosystem ensures seamless coordination and long-term strategy.

Summary

Escaldes-Engordany offers a premium real estate opportunity for those seeking luxury, safety, and investment stability in a low-tax jurisdiction. Its strategic location, health and wellness appeal, and international accessibility make it a top choice for investors targeting Andorra. With a thriving rental market, lifestyle services, and secure legal structure, Escaldes-Engordany is one of the most desirable micro-locations in the Pyrenees for both living and earning returns.