The landlocked Principality of Andorra is one of the smallest states in Europe, nestled high in the Pyrenees between the French and Spanish borders. For 715 years, from 1278 to 1993, Andorrans lived under a unique coprincipality, ruled by French and Spanish leaders (from 1607 onward, the French chief of state and the Bishop of Urgell). In 1993, this feudal system was modified with the introduction of a modern, constitution; the co-princes remained as titular heads of state, but the government transformed into a parliamentary democracy.

Andorra has become a popular tourist destination visited by approximately 10 million people each year drawn by the winter sports, summer climate, and duty-free shopping. Andorra has also become a wealthy international commercial center because of its mature banking sector and low taxes. As part of its effort to modernize its economy, Andorra has opened to foreign investment, and engaged in other reforms, such as advancing tax initiatives aimed at supporting a broader infrastructure. Although not a member of the EU, Andorra enjoys a special relationship with the organization and uses the euro as its national currency.

Southwestern Europe, Pyrenees mountains, on the border between France and Spain

42 30 N, 1 30 E

Europe

2.5 times the size of Washington, DC

0 km (landlocked)

none (landlocked)

temperate; snowy, cold winters and warm, dry summers

rugged mountains dissected by narrow valleys

highest point: Pic de Coma Pedrosa 2,946 m

hydropower, mineral water, timber, iron ore, lead

arable land 5.5%; permanent crops 0%; permanent pasture 37.9%

0 sq km (2012)

population is unevenly distributed and is concentrated in the 7 urbanized valleys that make up the country's parishes (political administrative divisions)

avalanches

deforestation; overgrazing of mountain meadows contributes to soil erosion; air pollution; wastewater treatment and solid waste disposal

landlocked; straddles a number of important crossroads in the Pyrenees

85,660 (July 2016 est.)

Andorran 49%, Spanish 24.6%, Portuguese 14.3%, French 3.9%, other 8.2% (2012 est.)

Catalan (official), French, Castilian, Portuguese

Roman Catholic (predominant)

0.07% (2016 est.)

7.8 births/1,000 population (2016 est.)

7.1 deaths/1,000 population (2016 est.)

0 migrant(s)/1,000 population (2016 est.)

population is unevenly distributed and is concentrated in the 7 urbanized valleys that make up the country's parishes (political administrative divisions)

ANDORRA LA VELLA (capital) 23,000 (2014)

1.39 children born/woman (2016 est.)

8.1% of GDP (2014)

4 physicians/1,000 population (2010)

2.5 beds/1,000 population (2009)

urban: 100% of population

rural: 100% of population

total: 100% of population

urban: 0% of population

rural: 0% of population

total: 0% of population (2015 est.)

urban: 100% of population

rural: 100% of population

total: 100% of population

urban: 0% of population

rural: 0% of population

total: 0% of population (2015 est.)

NA

NA

NA

32.1% (2014)

3.1% of GDP (2014)

parliamentary democracy (since March 1993) that retains its chiefs of state in the form of a co-principality; the two princes are the president of France and bishop of Seu d'Urgell, Spain, who are represented in Andorra by the co-princes' representatives

7 parishes (parroquies, singular - parroquia); Andorra la Vella, Canillo, Encamp, Escaldes-Engordany, La Massana, Ordino, Sant Julia de Loria

1278 (formed under the joint sovereignty of the French Count of Foix and the Spanish Bishop of Urgell)

Our Lady of Meritxell Day, 8 September (1278)

drafted 1991, approved by referendum 14 March 1993, effective 28 April 1993 (2016)

mixed legal system of civil and customary law with the influence of canon law

has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction

18 years of age; universal

Citizens' Initiative or IC [Sergi RICART] (including PS, VA, IC, and independents)

Democrats for Andorra or DA [Antoni MARTI PETIT]

Greens of Andorra or VA [Isabel LOZANO MUNOZ, Juli FERNANDEZ BLASI]

Liberal Party or PLA [Josep PINTAT FORNE]

Social Democratic Party or PS [Vincenc ALAY FERRER]

Social Democratic Progress Party or SDP [Victor NAUDI ZAMORA]

CE, FAO, ICAO, ICC (NGOs), ICCt, ICRM, IFRCS, Interpol, IOC, IPU, ITU, OIF, OPCW, OSCE, UN, UNCTAD, UNESCO, Union Latina, UNWTO, WCO, WHO, WIPO, WTO (observer)

the US does not have an embassy in Andorra; the US ambassador to Spain is accredited to Andorra; US interests in Andorra are represented by the US Consulate General's office in Barcelona (Spain); mailing address: Paseo Reina Elisenda de Montcada, 23, 08034 Barcelona, Spain; telephone: [34] (93) 280-2227; FAX: [34] (93) 280-6175

three vertical bands of blue (hoist side), yellow, and red, with the national coat of arms centered in the yellow band; the latter band is slightly wider than the other two so that the ratio of band widths is 8:9:8; the coat of arms features a quartered shield with the emblems of (starting in the upper left and proceeding clockwise): Urgell, Foix, Bearn, and Catalonia; the motto reads VIRTUS UNITA FORTIOR (Strength United is Stronger); the flag combines the blue and red French colors with the red and yellow of Spain to show Franco-Spanish protection

national colors: blue, yellow, red

Tourism, retail sales, and finance are the mainstays of Andorra's tiny, well-to-do economy, accounting for more than three-quarters of GDP. Andorra's duty-free status for some products and its summer and winter resorts attract millions of visitors annually, although the economic downturn in neighboring countries has curtailed the number of tourists. Agricultural production is limited - only about 5% of the land is arable - and most food has to be imported, making the economy vulnerable to changes in fuel and food prices. The principal livestock is sheep. Manufacturing output and exports consist mainly of perfumes and cosmetic products, products of the printing industry, electrical machinery and equipment, clothing, tobacco products, and furniture. Andorra is a member of the EU Customs Union and is treated as an EU member for trade in manufactured goods (no tariffs) and as a non-EU member for agricultural products. Andorra uses the euro and is effectively subject to the monetary policy of the European Central Bank. Andorra's comparative advantage as a tax haven eroded when the borders of neighboring France and Spain opened; its bank secrecy laws have been relaxed under pressure from the EU and OECD.

Slower growth in Spain and France has dimmed Andorra's economic prospects. Since 2010, a drop in tourism contributed to a contraction in GDP and a sharp deterioration of public finances, prompting the government to begin implementing several austerity measures to reduce the budget deficit, including levying a special corporate tax. The Government is also planning to institute an income tax at the behest of the Organization for Economic Cooperation and Development. The new tax will apply to anyone who lives in the principality for at least 183 days in a calendar year. The first $30,000 of income will be tax free, with the next $20,000 taxed at 5%. The balance of income exceeding the initial $50,000 will be taxed at 10%, which is still less than in most West European countries. Andorra’s Government also relaxed its residency and investment laws in 2012 to make the country more attractive to foreign investors. A person now must spend 90 days a year in the principality to qualify for residency, compared with the previous 180-day requirement. Foreigners now have the same property ownership rights as citizens. In addition, three new categories of residency permits were introduced. Anyone who is retired or at least not working in Andorra can obtain a permit in the first category by making a financial investment in the country of at least €400,000, which can include a property purchase.

$3.163 billion (2012 est.)

$3.214 billion (2011 est.)

$3.227 billion (2010 est.)

$4.8 billion (2012 est.)

-1.6% (2012 est.)

-0.4% (2011 est.)

-1.9% (2010 est.)

$37,200 (2011 est.)

$37,700 (2010 est.)

$37,900 (2009 est.)

small quantities of rye, wheat, barley, oats, vegetables, tobacco; sheep, cattle

tourism (particularly skiing), banking, timber, furniture

NA%

36,060 (2012)

4% (2012 est.)

1.9% (2011 est.)

NA%

21.4% of GDP (2012)

-0.3% of GDP (2012)

41.1% of GDP (2012)

37.7% of GDP (2011)

calendar year

1.1% (2012 est.)

-2.5% (2011 est.)

$70 million (2012 est.)

$72 million (2011 est.)

tobacco products, furniture

$1.43 billion (2012 est.)

$1.501 billion (2011 est.)

consumer goods, food, fuel, electricity

$NA

euros (EUR) per US dollar -

0.885 (2015 est.)

0.7525 (2014 est.)

0.7634 (2013 est.)

0.78 (2012 est.)

0.7185 (2011 est.)

91.24 million kWh (2011)

562.4 million kWh (2012)

0 kWh (2012 est.)

0 kWh (2012 est.)

520,000 kW (2010 est.)

61.3% of total installed capacity (2010 est.)

0% of total installed capacity (2010 est.)

23.3% of total installed capacity (2010 est.)

1 public TV station and 2 public radio stations; about 10 commercial radio stations; good reception of radio and TV broadcasts from stations in France and Spain; upgraded to terrestrial digital TV broadcasting in 2007; roughly 25 international TV channels available (2012)

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C3 (2016)

no regular military forces, Police Service of Andorra (2011)

defense is the responsibility of France and Spain

none