Monaco , officially the Principality of Monaco (French: Principauté de Monaco; Monégasque: Principatu de Múnegu; Italian: Principato di Monaco; Occitan: Principat de Mónegue), is a small sovereign city-state located in South Western Europe on the northern central coast of the Mediterranean Sea. It is surrounded on three sides by its neighbour, France, and its center is about 16 km (9.9 mi) from Italy. Its area is just under 2 km² with an estimated population of almost 33,000. Monaco is the name of the country and its capital (and only) city. It is famous as a tax haven, and wealthy foreigners make up the majority of the population, around 84%. It is often referred to as the Las Vegas of Europe Monaco is a constitutional monarchy and principality, with Prince Albert II as head of state. The House of Grimaldi has ruled Monaco since 1297, and the state's sovereignty was officially recognized by the Franco-Monegasque Treaty of 1861. Despite being independent, Monaco's defence is the responsibility of France.