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This article may help explain some of the issues - it says that flat face dogs like pugs may have difficulties at high altitude, but I'd think it would be minimal at the 8400' elevation of Cuenca.  If you were going to live over 10,000', and probably considerably more than 10,000', then I might worry.  It depends not only on the breed but each individual dog, with older dogs often having a bit harder time.  Just like some people may notice high-altitude effects below 10,000', others may not notice anything until they go over 15,000' or so, and it's hard to tell how you'll react until you go there.



Commercial airliners are usually pressurized to the equivalent of 7000'-8000' altitude so if you've ever flown with your pugs before and they had no problems, I'd think they'd be fine in Cuenca.

It wouldn't hurt to also check with a veterinarian, or even several, and see what they say.  These links have some recommendations from vets.  The first one says symptoms of altitude problems may begin as low as 6000' but the second one says "...your pug will do just fine when he is walking and running at a local dog park at 5,000 or 6,000 feet, but hiking at 14,000 feet mountain (sic) will be very difficult for him.":



The second link also has this reassuring advice:

The Effects Of Altitude On Pugs

Let us imagine: You are traveling with your pug on your favorite ski resort in winter that happens to be at 10,000 feet. The question is should you take your pug along? The answer is yes. There is nothing to worry as your pug will do just fine as long as he is not very active at high altitude.

Many thanks, OsageArcher, very helpful!