Andorra: An Independent Country Between France and Spain

Nestled in the heart of the Pyrenees, between France and Spain, lies an independent and fascinating country whose uniqueness never ceases to amaze: the Principality of Andorra. This European microstate, although small in size, is distinguished by its unique political system, its dynamic economy and its exceptional living environment. Let’s discover together this Pyrenean jewel that combines tradition and modernity.

A unique Co-Principality in the world

Andorra stands out for its original political system: a parliamentary co-principality. Unlike other monarchies, it has not one, but two heads of state. This historical peculiarity means that the President of the French Republic and the Bishop of Urgell jointly share the title of co-princes, thus creating a political balance that is unique in the world.

Under the leadership of the Head of Government Xavier Espot Zamora, re-elected in 2023, Andorra continues its modernisation while preserving its centuries-old traditions. The country has a unicameral parliament, the Consell General, which ensures the democratic representation of its citizens.

A compact territory with multiple advantages

With its 468 km² of surface area, Andorra might seem modest. However, this mountainous territory is home to seven main parishes (communes), each with its own identity:

• Andorra la Vella, the historic capital
• Canillo, a winter sports paradise
• Encamp, with its modern tourist facilities
• Ordino, preserving its cultural heritage
• La Massana, a popular destination for nature lovers
• Sant Julià de Lòria, an important commercial centre
• Escaldes-Engordany, known for its thermal springs

A Cosmopolitan Population and a High Standard of Living

In 2023, Andorra has 84,516 inhabitants, a density of 174 inhabitants per square kilometre. What is particularly striking is the remarkable level of human development of the country, ranked 35th in the world according to the UNDP. With a literacy rate of 100% and a life expectancy of over 80 years, Andorrans enjoy an enviable quality of life.

A Prosperous Economy Looking to the Future

The Andorran economy is characterised by its robustness and diversification. With a GDP per capita of more than €34,000 in 2022, the country is in remarkable economic health. The exceptionally low unemployment rate (1.7% at the end of 2022) testifies to the dynamism of the local labour market.

The tertiary sector dominates the economy, accounting for more than 86% of the national gross value added. Financial services, real estate, trade and tourism are the pillars of this modern economy. The privileged trade relations with Spain and France, its two large neighbours, reinforced this prosperity.

Growing international integration

Although not a member of the European Union, Andorra maintains close ties with it. The country has been using the euro as its official currency since 2011 and has been minting its own coins since 2015. The negotiations for an association agreement with the EU, finalised in December 2023, mark a new stage in its European integration.

On the international scene, Andorra plays an active role:

• Member of the United Nations since 1993
• Membership of the International Organization of La Francophonie
• Participation in the Ibero-American Conference
• Member of the IMF and the Council of Europe Development Bank

Culture and Identity: Between Tradition and Modernity

Catalan, the only official language, testifies to the country’s strong cultural identity. Catholic tradition remains important, as evidenced by the celebration of the National Day on September 8, the day of the Virgin of Meritxell. At the same time, the country’s modern Constitution is celebrated on March 14, a perfect illustration of this alliance between historical heritage and modernity.

A unique investment opportunity

Andorra represents a unique model of success for a European micro-state. Its ability to maintain its cultural identity while adapting to the challenges of the twenty-first century, its economic prosperity and its original political system make it a fascinating case study. As the country prepares to strengthen its ties with the European Union, its future looks bright, demonstrating that a small territory can have big ambitions.

For informed investors, Andorra offers a particularly attractive business environment. The country is distinguished by:

• A competitive tax system
• Proven political and economic stability
• A modern and secure banking sector
• A strategic position between two major markets
• Quality infrastructure
• An exceptional living environment

At Clickand, our international investment experts support entrepreneurs and investors in their project to set up in Andorra. Whether you want to develop a business activity, invest in real estate or explore the opportunities of the Andorran market, our multilingual team is here to guide you.

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