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Andorra, officially the Principality of Andorra, also called the Principality of the Valleys of Andorra, is a landlocked microstate in Southwestern Europe, located in the eastern Pyrenees mountains and bordered by Spain and France. It is the sixth smallest nation in Europe, having an area of 468 km2 (181 sq mi) and an estimated population of 85,000 in 2012. Its capital, Andorra la Vella, is the highest capital city in Europe, at an elevation of 1,023 metres (3,356 ft) above sea level. The official language is Catalan, although Spanish, Portuguese, and French are also commonly spoken.Created under a charter in 988, the present Principality was formed in 1278. It is known as a principality as it is a monarchy headed by two co-princes – the Bishop of Urgell and the President of France.Andorra is a prosperous country mainly because of its tourism industry, which services an estimated 10.2 million visitors annually, and also because of its status as a tax haven, although it is in the process of reforming its tax regime. It is not a member of the European Union, but the euro is the de facto currency. The people of Andorra have the 7th highest human life expectancy in the world – 82 years at birth.