Claim: Andorra is a principality.

Andorra -LRB- -LSB- ænˈdɔ : rə -RSB- -LSB- ənˈdorə -RSB- , -LSB- anˈdɔra -RSB- -RRB- , officially the Principality of Andorra -LRB- Principat d'Andorra -RRB- , also called the Principality of the Valleys of Andorra -LRB- -LSB- Principat de les Valls d'Andorra , links = no -RSB- -RRB- , is a sovereign landlocked microstate in Southwestern Europe , located in the eastern Pyrenees mountains and bordered by Spain and France . Created under a charter in 988 , the present principality was formed in 1278 . It is known as a principality as it is a diarchy headed by two Co-Princes the Roman Catholic Bishop of Urgell in Spain , and the President of France .   Andorra is the sixth-smallest nation in Europe , having an area of 468 km2 -LRB- 181 sq mi -RRB- and a population of approximately 85,000 . Its capital Andorra la Vella is the highest capital city in Europe , at an elevation of 1,023 m above sea level . The official language is Catalan , although Spanish , Portuguese , and French are also commonly spoken .   Andorra 's tourism services an estimated 10.2 million visitors annually . It is not a member of the European Union , but the euro is the official currency . It has been a member of the United Nations since 1993 . In 2013 , the people of Andorra had the highest life expectancy in the world at 81 years , according to The Lancet .