Andorra

Andorra

Andorra, officially the Principality of Andorra, is a small landlocked country located in Southwestern Europe, in the eastern Pyrenees mountains between France and Spain. Known for its mountainous landscape, ski resorts, and duty-free shopping, Andorra is one of Europe’s smallest but wealthiest countries.

Andorra covers an area of approximately 468 square kilometres and has a population of around 80,000 people. Despite its size, the country enjoys a high standard of living and a stable political system.

Key Country Information

  • Capital City: Andorra la Vella
  • Heads of State: Co-Princes (President of France and Bishop of Urgell)
  • Form of Government: Parliamentary co-principality
  • Official Language: Catalan
  • Currency: Euro (EUR)
  • International Dialing Code: +376

Population and Economy

As of 2024–2025, Andorra has an estimated population of approximately 80,000. The economy is heavily dependent on tourism, which accounts for the majority of GDP, particularly winter sports and mountain tourism.

Other important economic sectors include retail, banking, real estate, and financial services. Andorra is also known for its low-tax environment, making it attractive for businesses and high-net-worth individuals.

European Union and Schengen Status

Andorra is not a member of the European Union or the Schengen Area but maintains close relations with the EU.

  • EU Member State since: ❌ Not a member
  • Euro Area Member since: ❌ Not a member (uses the euro by agreement)
  • Schengen Area Member since: ❌ Not a member

Although not part of Schengen, Andorra has open borders with France and Spain, both of which are Schengen members, meaning no routine border checks for travelers.

Living and Working in Andorra

Andorra offers job opportunities mainly in tourism, hospitality, retail, and finance. Due to strict residency regulations, foreign nationals must secure employment and a residence permit before moving.

Work permits are generally employer-sponsored, and residency options are available for both active workers and passive residents who meet financial requirements.

Summary

Andorra is a small but prosperous European microstate known for its natural beauty, tourism-driven economy, and favorable tax environment. While not part of the EU or Schengen Area, it enjoys strong economic and travel ties with neighboring European countries.