A TRIP TO MONACO! THE SECOND SMALLEST CITY IN THE WORLD AND ONE OF ONLY 3 NATIONS REFERRED TO AS A PRINCICIPALITY

Is Monaco a Country? What is a Principality? Understanding Monaco’s Status

Is Monaco a Country? Many of those interested in Monaco find themselves somewhat confused by the tiny nation’s status. Impossibly small, it sits on the Mediterranean coast, entirely encased by the much larger nation of France, and is referred to as being a “principality”—a term seldom heard in the modern world, being applied only to Monaco, Lichtenstein, and Andorra in Europe.

So is Monaco a Country?

In a word, yes; not only is Monaco a country, it can claim the title of being the second-smallest country in the world (only Vatican City is smaller), and the most densely populated.
While principalities during the middle ages where sometimes feudatories, all those that remain today are sovereign states (independent nations). Principalities are monarchies where the ruler goes by the title of Prince or Princess rather than King or Queen. Monaco is a constitutional monarchy currently ruled by Prince Albert II of the Grimaldi family.
Monaco got its start as a country following a grant of land from Emperor Henry VI in 1191, and came to be ruled by the House of Grimaldi in 1297, though they struggled to keep a hold on “the rock” for more than a century afterwards. Only in 1419 did the Grimaldis finally officially purchase Monaco from the crown of Aragon and establish themselves officially as its rulers.
Monaco existed as a protectorate of France for centuries (seeking protection from Spanish forces) until it was seized during the French Revolution. Only in 1812, after over twenty years of French rule, did the Grimaldis manage to get the throne back—only for the Kingdom of Sardinia to claim it as a protectorate in 1815, where it remained until 1860, when it was once again taken as a protectorate of France.
In order to achieve full independence from France in 1861, Monaco had to give up a staggering 95% of its total area, land which had been ruled by the Grimaldis for half a millennia by that point. While Monaco was never a large country, this resulted in it becoming the impossibly tiny spec of a nation it is today.

How is Monaco, a country so small, able to sustain itself?

Monaco’s ability to sustain itself as a nation despite its tiny size is basically rooted in tourism. During the mid-1800s, the Grimaldi family—which was then facing bankruptcy—established the now world-famous Monte Carlo Casino in order to lure tourists into the country. The Casino soon became so massively successful that not only was Monaco saved as a country, the principality was able to stop collecting income tax from its residents. This further added to Monaco’s wealth, as it subsequently became a tax haven for Europe’s wealthiest citizens, a status it still very much enjoys today.
Modern Monaco is a playground for the rich and a paradise for average tourists alike, with its perfect climate (blissfully warm and sunny all year round) and stunning scenery drawing millions of visitors annually. Today the principality’s top attractions are its casino, its royal palace, and of course, the Formula One Grand Prix, which is held on the streets of Monte Carlo every year.