Vatican

Vatican City is the world's smallest officially recognized state. It was established in 1929 in Italy in accordance with the Lateran Treaty. Vatican City is entirely located within Rome, the capital of Italy. According to international law, Vatican City is the auxiliary sovereign territory of the Holy See and the residence of the highest spiritual leadership of the Roman Catholic Church. It is an absolute theocratic monarchy, with the Pope being its lifelong head of state. Its area is 0.44 square km, and it had a population of 842 in 2014. Most of the Vatican's population is clergy, and most of the physical work in the city-state is done by Italian citizens. The Vatican is financed by donations from Catholics around the world. Furthermore, Vatican City has a non-profit planned economy.

Monaco

The Principality of Monaco, located in the territory of France, is the second-smallest country in the world. It is situated on the shores of the Ligurian Sea in southern Europe. Monaco has one of the highest population densities on the planet. Almost 36,000 people live in its area of 2.02 square km. Over the past 20 years, the size of the microstate increased slightly thanks to land reclamation. Monaco is a monarchy and its economy is largely based on tourism. Besides its tiny land area, the country is famous for its luxurious Monte Carlo casino and for hosting one of the Formula One championships, the Monaco Grand Prix.

Nauru

The third-smallest country in the world is the Republic of Nauru. It is located in the western part of the Pacific Ocean in Micronesia, about 42 kilometers south of the equator. Nauru has a land area of 21.3 square km with a population of about 10,000 as of 2011. The microstate became an independent country in 1968 and is considered to be the world’s smallest republic as well as the smallest island nation. Furthermore, it is the world’s smallest microstate outside Europe and the only republic without an official capital. Nauru’s history dates back almost 3,000 years.

Tuvalu

Tuvalu is the world’s fourth-smallest country. Located in Polynesia, this Pacific island nation had a population of 11,000 in 2011. Its capital is Funafuti. The islands of Tuvalu were discovered in 1568 by the navigator Alvaro de Mendana de Neira. The archipelago received its present name in 1975. Originally named the Lagoon Islands by the discoverer, the archipelago was renamed to Ellice Islands in 1819. Until the mid-20th century, Tuvalu was a British colony. It only gained independence in 1978.

Liechtenstein

The Principality of Liechtenstein is the fifth-smallest country in the world. It is located in the Alps and borders Austria and Switzerland, with its western border being the great river Rhine. This picturesque Western European microstate is one of the richest countries in the world. Liechtenstein’s capital is Vaduz. Named after the ruling Liechtenstein dynasty, it is a constitutional monarchy. In 2012, Liechtenstein had a population of 37,000 and a land area of only 160.4 square km. The landlocked principality has more registered companies than residents. It is also home to several significant art museums, such as the Kunstmuseum Liechtenstein, which features one of the world’s largest collections of contemporary art.