The Principality of Monaco.

Monaco is first and foremost a tourist destination that attracts as many as 1.5 million visitors a year and is famous for its beaches and casinos, especially the world-famous Monte Carlo. It has had gaming tables since 1856, making it a pioneer of the casino industry. The monarch, Prince Rainier III, born in 1923, succeeded his grandfather, Louis II, on his death, in May 1949. Rainier was married, in 1956, to American actress Grace Kelly and they subsequently had three children. Their son, Prince Albert Louis Pierre (b. 1958) is heir to the throne. Immensely popular, Princess Grace died on Sept. 14, 1982, of injuries received in a car accident near Monte Carlo. She was 52. Monaco celebrated the 700th anniversary of the Grimaldi reign in 1997. In 2002, the constitution was revised to ensure that the Grimaldi's retain the throne even if Crown Prince Albert has no heir. On April the 6th, 2005, Prince Rainier, Europe's longest-reigning monarch, died, and Prince Albert II succeeded him. Monaco's practice of providing a tax shelter for French businessmen resulted in a 1962 dispute between the countries. A compromise was reached by which French citizens with less than five years' residence in Monaco were taxed at French rates, and taxes were imposed on Monegasque companies doing more than 25% of their business outside the principality. The country was admitted to the UN in May 1993, making it the smallest country represented there. As at July 1995, Monaco had a permanent Population of only 31,515. Monaco is in Western Europe, bordering the Mediterranean Sea, on the southern coast of France, near the border with Italy. Its climate is typically Mediterranean with mild, wet winters and hot, dry summers. Monaco attracts tourists both to its casino and for its pleasant climate. The Principality has successfully sought to diversify into services and small, high-value-added, non polluting industries. As previously mentioned the state has no income tax and low business taxes and thrives as a financial haven both for individuals who have established residence and for foreign companies that have set up businesses and offices. About 50% of Monaco's annual revenue comes from value-added taxes on hotels, banks, and the industrial sector; about 25% of revenue comes from tourism. Living standards are high, that is, roughly comparable to those in prosperous French metropolitan suburbs. So next time you're in southern Europe and have a few days to spare, why not visit this compact and fascinating nation. Interested in this subject? Try this link for more of the same