2. Monaco
Area: 0.78 sq mi
After Vatican City, Monaco is the second smallest country in the world. Officially known as the Principality of Monaco, it is surrounded by France and the Mediterranean Sea. With 38,400, it’s among the most densely populated countries in the world. Monaco is a tax haven closely followed by Zürich or Geneva. The country is ruled by a constitutional monarchy, and its lenient laws attract the rich and the famous so much so that 30% of the inhabitants are millionaires.