Monaco is a small sovereign city-state located in Western Europe which lies on the northern coast of the Mediterranean Sea and is completely enclosed by France. Monaco is often regarded as a tax haven, and many of its inhabitants are wealthy and from foreign countries making up a majority of the population, at around 84%.
Monaco is a Constitutional Monarchy and Principality with Prince Albert II as head of state. The Grimaldi family has ruled over Monaco since 1297 and the state's sovereignty was officially recognized by the Franco-Monegasque Treaty of 1861. Despite being independent, Monaco’s defense is still the responsibility of France. Monaco is the world’s most densely populated sovereign country, and the world's smallest French-speaking country.
Monaco levies no income tax on individuals. The absence of a personal income tax in the principality has attracted to it a considerable number of wealthy "tax refugee" residents from European countries who derive the majority of their income from activity outside Monaco; celebrities such as Formula One drivers attract most of the attention, but the vast majority of them are less well-known business people.
