Spain Guide
Catalunya
Andorra
After seven centuries of feudalism, modernity finally forced itself upon the PRINCIPALITY OF ANDORRA, 450 square kilometres of precipitously mountainous land between France and Spain. A 1993 referendum voted overwhelmingly for a democratic constitution, replacing a system in effect since 1278, when the Spanish bishops of La Seu d'Urgell and the French counts of Foix settled a long-standing quarrel by granting Andorra semi-autonomous status under joint sovereignty.
It was by remaining neutral during the Spanish Civil War and World War II that Andorra began its economic mushrooming, as a smuggling centre, and its subsequent tax-free status held the seeds of its conversion to democracy. It still has no income tax, and barely any indirect taxes either. Instead, the strategy has been to transform Andorra into an "offshore" banking centre to rival Gibraltar, Liechtenstein and the Caymans. It's a member of the United Nations and the Council of Europe, but not the EU.
As recently as 1950 Andorra was virtually cut off from the rest of the world. There are still no planes or trains, but otherwise development has been all-encompassing. Despite new bypass roads and bus lanes, it can take an hour in bumper-to-bumper traffic to drive the few kilometres from La Seu d'Urgell to ANDORRA LA VELLA, the main town. Most of the principality – even the steeper slopes – is a perpetual chalet-building site; mega ski resorts monopolize attractive corners. Don't expect to find an unspoilt spot anywhere, though, unless you're prepared to head up the mountains on foot.
With its stone church, river and enclosing hills, Andorra la Vella must once have been an attractive little place. Today, the main street is a seething mass of bad restaurants (specializing in six-language menus), tacky bars and garish shops crammed with everything from booze, perfumes and watches to cars and appliances.
There's reasonably priced accommodation at Hotel Florida at c/La Llacuna 13 (376 820 105, www.hotelflorida.ad; €71-100), with balconied rooms, sauna and small gym, and 1940-vintage Hotel Pyrénées at Avgda. Princep Benlloch 20 (376 878 879, www.hotelpyrenees.com; €71-100), with an elegant menjador and wi-fi; rear rooms are quieter and have better views.