Principality of Andorra

Principality of Andorra
Principality of Andorra

This small principality, located between France and Spain, was created under a charter in 988, and formed into a principality in 1278 as a monarchy.

The landmass measures 468 km2 with a population of approximately 85 000.The population of Andorra consists of Spaniards (more than 27 000), Portuguese (a little less than 14000), French (less than 5000), and British (less than 1000), plus a few Italians and others.
More than 10 million tourists visit Andorra annually, in summer to hike, and in water to ski.

Tax-free Andorra is a tax haven for many international companies (head offices) and shoppers from both Spain and France, including millions of other Europeans.
Tourism represents 80 per cent of the GDP, and unemployment is very low, if it exists at all. Most economists think that an unemployment rate of less than four per cent means full employment, and vibrant economy. By this measure Andorra’s economy is vibrant and most Andorrans are wealthy.

Both Spain and France helping government treasury by forgoing the expenses of maintaining an army.

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