Andorra la Vella is the capital and 23 505 (as at 31 December 2010) while only city residents in Andorra. It is the highest capital in Europe. Andorra la Vella is located in the southwest of the country of Andorra in the eastern Pyrenees, at the confluence of two mountain streams Valira d’Ordino (also Valira del Nord) and Valira d’Encamp (also Valira d’Orient) to the river Valira. Situated at an altitude of 1,013 meters, it is a popular ski resort.
The exact founding date of the city is unknown, but certainly it was already established in pre-Christian period, probably from the Andosinen. Since 1287 as a merger of French and Catalan sovereignty emerged in this area in Andorra, Andorra la Vella was practically the capital of the new state, as their special rights over other Andorran towns were granted. Some streets and buildings in the town date from this time. The most notable building is the one, Casa de la Vall, built in the early 16th Century, since 1707, the Parliament House. Andorra la Vella was during this time the capital of a vast and isolated feudal state.
At the beginning of the 20th Century was ignored Andorra and was not part of the Versailles Treaty. After political turmoil and a coup attempt by King Boris I slowly developed a loose democracy. Since 1993 Andorra has its own constitution. This specifies that the seat of government in Andorra la Vella, the fact was officially the capital. Meanwhile, Andorra la Vella became a tax haven, whereupon a modern banking system could be built. Furthermore, the developed winter tourism.