The signing, in 1278 and 1288, of the first and second paréages between the Bisbe d'Urgell (Spain) and the Compte de Foix (France) marked the independence of Andorra. The paréages established an indivisible condominium over the territory of Andorra, with the same rights and powers for both lords.

Many years later, the French co-title passed to the kings of France, and later to the President of the French Republic. The co-title of the Bisbe d'Urgell remains unchanged today.

This co-principality status and the respect that Andorra has always shown towards its neighbours have been critical to its continued existence over the centuries, leading to its reputation of being a neutral, prosperous country.

The 1980s saw the emergence of the need to reform the Andorran institutions. The separation of powers was completed in 1981. That year the Co-Princes agreed to create the Government of Andorra (Executive Council) and institute a Head of Government.

In 1993 the Constitution was approved by referendum. It defines Andorra as a sovereign state with a democratic and social rule of law (parliamentary co-principality).

That same year, Andorra became a full member of the United Nations Organisation (UNO). It also sits on the Council of Europe.

Andorra is characterised by the principle of legal certainty, the stability of its government, and a long-standing democratic tradition. It is one of the countries in the world that receives the largest number of applications for residence without an income-earning activity.