The World’s Second-Smallest Country and Its Most Unequal Tax Haven
Monaco is the second-smallest country in the world (after Vatican City) — just 2.08 km². Despite its size, the principality has one of the world’s highest concentrations of wealth: roughly one in three residents is a US dollar millionaire, and property prices are the highest on Earth (over €50,000 per square metre in some areas).
The country is ruled by the House of Grimaldi — the world’s longest-ruling royal family (since 1297, over 725 years). Monaco famously charges no income tax for residents (though French residents pay French tax under a bilateral treaty). The country uses the euro but is not an EU member.
A Brief History
Monaco was founded when François Grimaldi captured the fortress disguised as a Franciscan monk in 1297. The Grimaldis have ruled since, with brief interruptions. The modern Principality dates from 1861.
Geography and Climate
Monaco covers 2.08 km² on the French Riviera. Mediterranean climate.
Culture, Language and Religion
French is official; Monégasque (Ligurian-based local language) has revival status. Religion: Catholic (the state religion).
The Economy
Monaco has the highest GDP per capita in the world (over $240,000 nominal). Financial services, tourism, and the casino/hospitality industry dominate.
Travel Guide
Entry: Schengen visa-free 90 days (treated as France for entry).
Budget: Extremely expensive — daily mid-range €300-€500.
Surprising Facts
- Monaco has the highest population density of any sovereign state — around 18,000 people per km².
- The Grimaldi family has ruled Monaco continuously since 1297 — the world’s longest-reigning royal family.
- The Monaco Grand Prix has been held on the city streets since 1929.
- Around one in three Monaco residents is a US dollar millionaire.
- Monaco has no income tax for its residents (except French nationals).
- Princess Grace (Grace Kelly) — Hollywood actress — married Prince Rainier III in 1956.
Sources and References
See the frontmatter for cited sources.