Andorra, also called the Principality of the Valleys of Andorra, is a sovereign, landlocked microstate in Southwestern Europe, located in the eastern Pyrenees mountains and bordered by Spain and France. Its capital, Andorra la Vella, is the highest capital city in Europe, being at an elevation of 1023 metres. The country is famous for its lovely mountains, ski resorts, and a tax-haven status that encourages duty-free shopping.