Santa Catarina is a state in southern Brazil with one of the highest standards of living in Latin America. Its capital is Florianapolis, which mostly lies on the Santa Catarina Island. Neighbouring states are Rio Grande do Sul to the south and Parana to the north. It is bounded on the east by the Atlantic Ocean, and to the west it borders the province of Misiones, Argentina. Most of its inhabitants are descendants of Portuguese, German, and Italian immigrants.