Monaco may be the second smallest country in the world, but it is also one of the richest. Almost a third of its residents are millionaires, lured to the French Riviera city state by its lenient fiscal policy — income tax was abolished in 1869. It is estimated that 70% of the population is foreign-born, while just 10,000 are locals, “the Monegasques.”
Consequently, Monaco’s 38,000 residents are today squeezed into less than one square mile of land (2.02 square kilometers) — a territory smaller than New York’s Central Park.
And when an additional 40,000 people cross the borders from France and Italy each day to work, the problem only gets worse.