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Andorra, a tiny principality nestled in scenic Pyrenees valleys on the border between France and Spain, was once a backwater of mule-raising and tobacco-smuggling. It has transformed itself into a tax-free playground of spas, ski resorts and shopping malls and has one of the highest living standards in the world.

It also offers "offshore" banking facilities for international finance, and that success is evidenced by the congested roads, plus the buzzing jackhammers and whirring cranes busy building new attractions and facilities in Andorra la Vella, the capital.

For travelers, Andorra offers hiking and village festivals in summer, skiing in winter, and dramatic mountain scenery, spas and duty-free shopping year-round, all tucked into one of the smallest countries in Europe.

Geography

Andorra is divided into seven parishes—known in Catalan as parroquias or comuns. The countryside is characterized by high mountains and deep valleys. A significant portion of the small country is actually part of the Andorra Resorts group which operates seven massive ski resorts.

At only 19 mi/30 km east to west and 16 mi/25 km north to south it is one of the smallest countries in the world.

History

Andorra traces its legendary origins back to Charlemagne, when the emperor supposedly founded the small state and granted it special status as a reward for helping his army in the fight against the Al-Andalus (Muslim Iberia). There's no proof to support the Charlemagne legend, but ninth-century church records show the territory belonging to the Spanish bishop of Seu d'Urgell. Through a series of complicated transactions and inheritances, the French royalty developed a claim on Andorra. After much squabbling, a compromise was reached in 1278: For the next 800 years, Andorra was ruled by the head of France and Spain's bishop of Seu d'Urgell in a curious binational arrangement, known as the Pareage. Although day-to-day affairs were overseen by an association of elected citizens, the country paid a yearly tribute to one of the "princes," who jointly "owned" the country. Befitting its medieval roots, the tribute consisted of 28 cheeses, seven hams, 14 capons and about US$90. The annual tribute, called the questia, was paid alternately to the bishop and to France.

During the 20th century, Andorra—although officially neutral—served as a popular smuggling route for goods from France to Spain during the Spanish Civil War and later from Spain to German-occupied France along with Jewish people out of German-occupied France in World War II. After the wars it developed into a duty-free haven and a tourist center for skiing.

In 1993, Andorra created a new constitution—its first—and became truly independent. The questia was eliminated, and Andorra took a seat at the U.N. and sent diplomatic representatives to other European countries. Andorra operates under the Euro and has its own coins similar to other EU Nations.

Under its current government, the president of France and the Spanish bishop are joint heads of state in what is described as a "parliamentary co-principality." Though they are not involved in the day-to-day running of the country, they do retain veto power for Andorran legislation and must approve all new laws.

Snapshot

Potpourri

It's estimated that there's a Romanesque church for every 3 sq mi/8 sq km in the country. The church of Santa Coloma in Andorra la Vella is a standout for its round tower—nearly all Romanesque churches have square belltowers.

Andorra la Vella claims it is Europe's highest capital.

The country's population is more than 70,000, but only about 35% of the people are Andorran citizens. The rest are mostly Spanish, Portuguese and French citizens. Added to that are more than 10 million visitors a year. Many workers in the service industries are immigrants from South America.

Andorra has 59 lakes and 53 peaks, including 43 more than 8,250 ft/2,500 m high. The highest is Pedrosa at 9,700 ft/2,945 m.

July and August are fiesta time in Andorra. Each comu has its own celebrations, with dozens of events. You'll see giants parading the streets—10-ft-/3-m-high figures made of papier-mache representing historical or mythical figures.

Caldea, the thermal spa complex in Escaldes, is one of the largest in Europe (and still growing); it proffers dozens of whirlpools, saunas, bubble beds and interesting things such as Turkish baths and Japanese grapefruit pools.

Catalan, the language of the transnational region covering Andorra, the Balearic Islands, northeastern Spain and southwestern France, sounds—not surprisingly—like a mixture of Spanish and French. A few words in Catalan will win you many friends in Andorra: Hello is hola (similar to Castilian, but with a more open "o" sound); goodbye is adeu (pronounced ah-DAY-oo); please is siusplau (SEESS-plow); very good is molt be (moll-BAY); and thank you is graciees (gra-SEA-ez).

Near Andorra is another geographical oddity: Llivia, a Spanish town entirely surrounded by France.