Monaco
A glittering city-state on the French Riviera
Monaco is the second-smallest country in the world, a glamorous city-state of about 38,000 people crowded onto a sliver of Mediterranean coast surrounded by France. Barely two square kilometers in size, it is also the most densely populated sovereign nation on earth, a vertical city of high-rises, marinas, and terraced hillsides above the sea. Ruled by the House of Grimaldi for more than seven centuries, Monaco is synonymous with wealth and spectacle, the Monte Carlo casino, the Formula One Grand Prix that races through its streets, and a tax regime that draws the world's rich.
The principality occupies a steep stretch of the Riviera where the Maritime Alps tumble to the sea, leaving almost no flat land, so Monaco has expanded upward and outward, reclaiming territory from the Mediterranean to make room for development. Its highest point is a modest rise on the Chemin des Revoires at 161 meters. The climate is classic Mediterranean, mild and sunny year-round, which underpins a tourism, yachting, and luxury economy. There is no income tax for residents, and banking, real estate, and high-end services dominate a financial system that operates on the euro.
The Grimaldi family seized the fortress of Monaco in 1297, and their dynasty has ruled, with interruptions, ever since, making it one of Europe's oldest reigning houses. A French protectorate in practice, Monaco secured its sovereignty through treaties with France while remaining closely tied to its giant neighbor for defense and customs. The 1956 marriage of Prince Rainier III to the American film star Grace Kelly cemented its celebrity mystique. A constitutional monarchy and a member of the United Nations since 1993, Monaco today is a byword for luxury, motorsport, and Mediterranean glamour.