New executive, legislative and judicial arms of government are set up. Andorra joins United Nations. France, Spain establish embassies. BBC Languages- Andorra. Andorra government. Andorran tourist board. Image source, Getty Images. Read full media profile. A view of Andorra's capital Andorra la Vella. Read full timeline. And, while they have co-princes from other countries the president of France and a bishop from a town just over the border in Spain , locals stress that Andorra is percent independent.
Until little more than a generation ago, Andorra was an impoverished and isolated backwater. A short drive from the modern capital into the higher valleys takes you to rugged little towns made entirely of stone; their stout 12th-century churches and stony bell towers stand as strong as the Pyrenees around them.
Recently, Andorrans have become wealthy — thanks to the same mountains that kept them so isolated and poor for so long. Hiking and skiing are big business, stoking a building boom. Huge Vail-like ski-condos, built of perfectly crafted rustic stone, both contrast and match the historic stone buildings they now dwarf and outnumber.
Andorrans have long grilled their trout, beef, or snails on open fires, and now the Andorran barbecue is a tourist attraction, and big-spending visitors enjoy the snails, which are fed a diet of thyme to become even tastier. More than 10 million visitors — mostly Spaniards and French enduring famous traffic jams — pour in yearly to buy luxury goods, electronics, and other goodies thus avoiding high taxes back home. Signs are commonly multilingual with French, Spanish, and Catalan.
While Andorrans speak Catalan — and have an affinity for the Spanish region of Catalunya, which includes Barcelona — the commercial environment here is as international as can be. With the unification of Europe and the rapid growth of shopping on the Internet in Europe, Andorra knows that its allure as a shopping Mecca is threatened. Something to keep in mind is you are often eligible for a tax refund on goods purchased abroad.
Buying furniture in Barcelona is a popular way to furnish a house in Andorra, as the VAT is refunded as the goods are exported from Spain. When compared with most other developed countries, these tax rates are minuscule, which makes for a more prosperous population, which in turn supports the local economy.
Tax on goods and services is capped at 4. Of course, this rate is much more affordable than most countries around the globe. For more information on taxes, see out in-depth guide on the Andorran tax system.
Patients are reimbursed for a portion of their fees for medical consultations, examinations and pharmaceutical expenses. For more information, see our guide on the healthcare system.
In a small country with less than 80, people, those looking to settle down in Andorra often have their doubts about the community. Will they accept a foreigner?
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