Spain, the world's 51^st-largest country (504,000 km² - 46 million inhabitants). Spain is located in south-western Europe on the Iberian Peninsula. Its mainland is bordered to the south and east by the Mediterranean Sea except for a small land boundary with the British Overseas Territory Territory of Gibraltar; to the north by France, Andorra, and the Bay of Biscay; and to the northwest and west by the Atlantic Ocean and Portugal. Spanish territory also includes the Balearic islands Islands in the Mediterranean, the Canary Islands in the Atlantic Ocean off the African coast, and two autonomous cities in North Africa, Ceuta and Melilla, that border Morocco. Furthermore, the town of Livia is a Spanish exclave situated inside French territory. The capital City of Spain is Madrid.