Created under a charter in AD 988, the present Principality was formed in 1278. It is known as a principality as it is a monarchy headed by two co-princes – the Spanish Bishop of Urgell and the President of France.
Andorra is a prosperous country mainly because of its tourism industry, which services an estimated 10.2 million visitors annually, and because of its status as a tax haven, although it is in the process of reforming its tax regime. It is not a member of the European Union, but the euro is the de facto currency. The people of Andorra have the 7th highest human life expectancy at birth in the world – 82 years.
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