Overview

Almost hidden on the border between France and Spain, the tiny Principality of Andorra is a land of narrow valleys and mountainous landscapes situated in the eastern Pyrenees, bordered by France and Spain.

The country is traversed by a main road which runs roughly north-east to south-west, along which most of the settlements are to be found. Many of these are villages or hamlets with Romanesque churches and houses built in the local style; others, off the main road, are even more unspoilt, and provide spectacular views across the rugged countryside.

Andorra is one of the oldest nations in Europe, originally established by Charlemagne as a buffer state against the Iberian muslims. As a result of the Paretages of 1278 and 1288, control of the country was split between the Spanish Bishop of Urgell and a nominee appointed by the King of France (initially the Count de Foix) and subsequently by the French emperors and presidents. The country was therefore a co-principality, with two heads of state jointly sharing power – the readiness of both sides to compromise allowed this unique arrangement to last intact until the late 20th century.

Although the inhabitants of Andorra were not consulted, they were prepared to accept a deal that guaranteed their security and national integrity. With the exception of a brief period during the Napoleonic Wars, Andorra has retained its independence ever since. The present Andorran constitution, introduced in 1993, formally enshrined Andorra as a principality.

Today, the mainstay of Andorra’s economy is tourism, which accounts for roughly 80% of the principality’s GDP. An estimated 10 million people visit each year, drawn by the winter sports, summer climate and duty-free goods. The banking sector also enjoys a tax-haven status.