Andorra la Vella is the capital of Andorra, in the Pyrenees mountains between France and Spain. It’s known as a duty-free retail hub, with shops lining Meritxell Avenue. Andorra la Vella is the capital of the Principality of Andorra. It is located high in the east Pyrenees, between France and Spain. It is also the name of the parish that surrounds the capital.